Apse Capital Announces Closing of €350 Million Continuation Fund Led by J.P. Morgan Asset Management

Rhea-AI Summary

Apse Capital has successfully closed a €350 million continuation fund led by J.P. Morgan Asset Management. The fund will acquire three portfolio companies from Apse Capital Bridge Fund: TerraQuest (UK planning and property software solutions), Kallidus (SaaS-based HCM platform with 1,200+ customers), and Ultima Business Solutions (UK IT solutions provider). The transaction received support from existing and new investors, with the General Partner reinvesting its carried interest proceeds. A portion of the new commitments will be available for follow-on capital to support continued growth and strategic M&A activities.

Positive

• Successful closing of €350 million continuation fund
• Strong investor support from both existing and new partners
• General Partner's reinvestment demonstrates confidence in portfolio
• Additional capital available for strategic M&A activities

Negative

• None.

Insights

Private Equity Analyst

This €350 million continuation fund represents a significant strategic move in the private equity space. The transaction structure, involving J.P. Morgan Asset Management, demonstrates strong investor confidence in the portfolio companies' growth potential. The deal's key strengths include:

• Substantial follow-on capital availability for future growth initiatives
• General Partner's reinvestment of carried interest, showing strong alignment with investors
• Portfolio diversification across tech-enabled B2B services with recurring revenue models

The portfolio companies show promising market positions - TerraQuest's monopolistic position in UK planning applications, Kallidus's expansion in the growing HCM space with 1,200+ customers and Ultima's strategic position in IT infrastructure services. The continuation fund structure allows for extended value creation while providing liquidity to existing investors.

Market Research Analyst

The transaction highlights growing institutional interest in tech-enabled B2B services sectors. Key market implications include:

• Validation of the UK tech services market's attractiveness to global investors
• Strong appetite for SaaS businesses with stable recurring revenues
• Growing importance of planning tech and digital infrastructure services

J.P. Morgan's involvement, managing over $400 billion in alternative assets, adds significant credibility to the deal. The transaction structure reflects current market trends toward continuation vehicles as a preferred exit mechanism in uncertain market conditions, allowing for longer holding periods and additional value creation.

LONDON--(BUSINESS WIRE)-- Apse Capital Limited (“Apse Capital”) announced today the successful closing of a €350 million continuation fund in connection with the acquisition of three existing assets from Apse Capital Bridge Fund.

The transaction was led by J.P. Morgan Asset Management and attracted a diverse group of secondary and primary investors, with substantial support from existing Apse limited partners.

The new vehicle was established to acquire three portfolio companies – TerraQuest, Kallidus and Ultima Business Solutions – from Apse Capital Bridge Fund, with the aim of continuing their organic growth and providing further capital for strategic M&A activities.

The transaction represents a strong outcome for Apse Capital Bridge Fund. The General Partner invested the entirety of its carried interest proceeds realised from the transaction, demonstrating its continued conviction in the portfolio. A portion of the new commitments will be available to use as follow-on capital to support continued growth.

The three companies included in the continuation fund are:

• TerraQuest – A leading provider of software solutions and technical data services for the UK land and property sector. TerraQuest operates the UK Planning Portal, a unique national platform that supports all planning applications, along with offering land referencing services.
• Kallidus – A rapidly growing SaaS-based HCM platform that delivers a comprehensive learning-led solution in the UK mid-market. Today, Kallidus serves over 1,200 customers with over 200 employees across the UK, the US and Canada.
• Ultima Business Solutions – A prominent UK provider of infrastructure and IT solutions to the public and private sectors, including managed services and professional services.

Tim Green, Managing Partner at Apse Capital, said: “We are delighted with the successful closing of the continuation fund and would like to express our sincere thanks to our existing investors, as well as to our new limited partners, for their support. In addition, on behalf of our investor partners and the entire Apse team, I would like to express our gratitude to the leadership teams and staff at TerraQuest, Kallidus and Ultima for their exceptional dedication and remarkable achievements to date. We are excited to continue our journey together as we seek to unlock further value in this next phase of growth.”

The Piper Sandler private capital advisory group, Aviditi Advisors, served as exclusive financial adviser to Apse Capital on the transaction. Weil, Gotshal & Manges LLP acted as legal counsel to Apse Capital, while DLA Piper LLP represented J.P. Morgan Asset Management.

About Apse Capital

Founded in 2019, Apse Capital is a London-based private equity firm that specialises in backing tech-enabled B2B information and services businesses in high-growth sectors across Europe. Apse Capital was co-founded by Tim Green, Ashley Long and Vikram Krishna, who have worked together for twenty years, have 80 years of combined private equity experience and, over the last ten years, have overseen a total of 43 transactions, financings and fundraisings with an aggregate value of €2.5 billion*. Apse Capital typically backs fast-growing European SMEs with an enterprise value of €50-€200 million. Apse Capital Limited is the Appointed Representative of GMT Communications Partners LLP, which is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 441230. For more information, visit www.apsecapital.com.

* These transactions have been advised on by members of the team at a predecessor firm and at Apse Capital. This appears as a matter of record only. Past performance is not an indication of future performance.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management is a global leader in alternatives, with over 60 years of experience managing alternative investments, including real estate, private equity, private credit, liquid alternative products, infrastructure, transport, hedge funds, and forestry. As of September 30, 2024, J.P. Morgan oversees more than $400 billion in alternative assets.

With $3.5 trillion in assets under management as of September 30, 2024, J.P. Morgan Asset Management serves institutions, retail investors, and high-net-worth individuals across every major market globally. The firm offers comprehensive investment management services in equities, fixed income, alternatives, and liquidity. For more information, visit www.jpmorganassetmanagement.com.

About Piper Sandler

Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; in the EU through Aviditi Capital Advisors Europe GmbH, authorized and regulated by BaFin as a tied agent of AHP Capital Management GmbH; and in Hong Kong through Piper Sandler Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Alternative asset management and fixed income advisory services are offered through separately registered advisory affiliates. For more information, visit www.pipersandler.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241126131347/en/

Tim Green

tim.green@apsecapital.com

Source: Apse Capital Limited

FAQ

What is the size of Apse Capital's new continuation fund in 2024?

Apse Capital's new continuation fund closed at €350 million, led by J.P. Morgan Asset Management.

Which companies were acquired through Apse Capital's continuation fund?

The continuation fund acquired three companies: TerraQuest (UK planning software), Kallidus (SaaS-based HCM platform), and Ultima Business Solutions (IT solutions provider).

How many customers does Kallidus serve as part of Apse Capital's portfolio?

Kallidus serves over 1,200 customers with more than 200 employees across the UK, US, and Canada.

Who served as the financial adviser for Apse Capital's continuation fund transaction?

Piper Sandler (NYSE: PIPR) private capital advisory group, through Aviditi Advisors, served as the exclusive financial adviser for the transaction.