Kennet funding news – London-based Kennet Secures €266Million for its Largest Fund Kennet VI

Kennet VI expands upon the profitable investment strategy and five-fund track record of its predecessor. With more than 25 years of expertise, It has demonstrated success in a number of market cycles.

In a difficult macro environment, the firm has not only raised its largest fund to date, but it has also consistently delivered exits, as seen by Eloomi in January 2024, which generated a 3.1x cash multiple. This comes after a string of profitable exits in the last several years, such as those of Nuxeo (5x), Dext (3.8x), CrossBorder Solutions (6.4x), Rimilia (2.5x), and Impartner (2.6x).

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It only makes investments in well-established, rapidly expanding B2B SaaS technology businesses that are entirely "bootstrapped," meaning they were founded without the need for outside funding, or extremely capital efficient founder-owned businesses. It's investment usually represents the first outside capital a company receives and is utilised for worldwide expansion, building elite management teams, and creating strategic value.

Michael Elias, Managing Director, Kennet Partners, said: “This fundraise marks another important milestone for Kennet as we close our largest fund to date, with a significant number of previous investors participating in this fund. At a time when the market has recognised that ‘growth at any cost’ is no longer rational, our long-standing conservative strategy has appealed to investors. Kennet’s risk-balanced strategy provides investors with the growth associated with innovative technology, while maintaining a low failure rate. We have proven over numerous fund cycles that capital efficient B2B SaaS businesses offer attractive investment opportunities and that helping entrepreneurs build outstanding management teams and enter global markets remains a winning formula.”

Hillel Zidel, Managing Director, Kennet Partners, said: “Our proven approach is based on the relationships we establish with bootstrapped founders, understanding that this will be a long-term trusted partnership. Unlike venture-backed businesses, our founders have typically not taken external investment before – they need to know they are working with the right team to realise their global ambitions. We are very proud that founders choose to work with Kennet because of our deep market knowledge, and reputation for fairness and integrity. This has enabled us to invest in great companies at sensible valuations regardless of the hype cycle. B2B software has become the engine room of many sectors, and Kennet VI will be at the forefront of the next generation of mission critical, scaling businesses.”

Raised as part of a fruitful collaboration with Edmond de Rothschild Private Equity that commenced in 2017. The bank's international clientele has first dibs on the Kennet VI fund, which has Edmond de Rothschild as a cornerstone investor. The fund also has commitments from Bpifrance, Federated Hermes Private Equity, and British Patient Capital.

Francois-Xavier Vucekovic, CIO at Edmond de Rothschild Private Equity, added: “We firmly believe that technology plays a critical role in the transformation of our economies and societies. Our commitment is to support and nurture companies that are at the forefront of innovation and value creation. The success of this fundraising effort, particularly in the current challenging environment, is a testament to the strength and relevance of Kennet's strategic approach. By leveraging cutting-edge tech solutions, Kennet ensures the sustainability and growth of their clients' business models, enabling them to thrive in a rapidly evolving market."

About Kennet

Kennet is an investor in growth equity in technology. They make investments in well-established, quickly expanding businesses that offer technology-enabled commercial services and information technology solutions. It offers expansion funding to companies looking to work with a seasoned investor to boost growth and create remarkable shareholder value. They currently manage more than $700 million, and they have offices in Silicon Valley, Frankfurt, and London.