Dec 11 2023

AnaCap closes maiden Continuation Fund to reinvest in two assets exited through M&A processes earlier this year


AnaCap, a market-leading partner for founders and entrepreneurial management teams across services, technology and software within the European financial ecosystem, today announces the closing of its maiden Continuation Fund at ~€300mn. This includes interests in two highly successful investments – leading German insurance broker consolidation platform MRH Trowe (“MRHT”) and tax services SaaS provider Gestión Tributaria Territorial, SA (“GTT”). AnaCap previously agreed to partial exits of both assets via M&A processes this year to TA Associates and Stirling Square Capital Partners.

This Continuation Fund is an innovative transaction which unlocks the option of full liquidity for AnaCap’s Fund III Limited Partners (“LPs”) at valuations set in competitive M&A processes and accommodates different investors having exposure to one or both assets. These realisations, alongside the exit of Oona Health for 3.9x money multiple in March 2023 results in five realisations to date in AnaCap’s 2016 Fund III, delivering realised returns of 3.5x money multiple and 52% IRR.

The Continuation Fund emerged following the competitive auction process for MRHT that was concluded in March with AnaCap selling a stake to TA Associates whilst retaining a significant minority post-transaction (announcement in full here). Additionally, the Continuation Fund will include the remaining minority stake in GTT following a similarly competitive auction that concluded in July and resulted in a majority exit to Stirling Square Capital Partners (announcement in full here).

The Continuation Fund enables an extension of the hold period for these two highly successful investments in the AnaCap portfolio, ensures that the investment horizons of new shareholders are fully aligned, and provides additional growth capital to the two businesses to further help them achieve their next phase of evolution.

HarbourVest Partners is acting as the principal lead for the Continuation Fund with Schroders acting as the co-lead for MRHT in the Continuation Fund. Together, and with other members of the syndicate, they have committed additional capital to primary AnaCap funds to further support the franchise moving forward.

This transaction was delivered via the combination of a competitive auction process for the partial divestments of AnaCap Fund III’s stakes in MRHT and GTT, plus a comprehensive Continuation Fund lead investor selection process.

2023 has been a very successful year for AnaCap with the closing of the Continuation Fund achieving the fourth and fifth full exits from AnaCap’s Fund III, further endorsing AnaCap’s refined strategy, of institutionalising entrepreneurialism and scaling high-quality founder-led businesses in the European lower-mid-market.

Nassim Cherchali & Tassilo Arnhold, Co-Managing Partners at AnaCap, commented:
“We are delighted to have attracted investors of such calibre as HarbourVest Partners and Schroders Capital to our new Continuation Fund. Together, we will continue to support the very capable management teams of both portfolio companies, extending our already highly successful journey to date as well as our proven value creation strategy.

This highly innovative structure provides both liquidity to existing investors in Fund III as well as the correct level of capital and strategic support for both portfolio companies as they continue to fulfil their strong, ambitious business plans. We are very pleased to be able to continue with both businesses and our new partners.”

Triago acted as the Placement Agent and Proskauer provided legal advice to AnaCap on the Continuation Fund transaction.