Kennet Partners
Encyclopedia
Kennet Partners is a private equity
investment firm that provides growth capital
to information technology
, Internet and business services companies in Europe and the US.
Kennet Partners is headquartered in London, England, and has an office in Foster City, California
. The firm raised its third fund in 2008 with €201 million, bringing total capital under management to over $600 million.
Kennet's first fund was primarily targeted at early-stage technology investments in Europe. With its second fund, Kennet began making growth equity investments in both Europe and the U.S., and today the firm focuses exclusively on providing growth capital.
Kennet Partners was founded by Michael Elias. The current partners are Michael Elias, David Carratt, Javier Rojas and Maximilian Bleyleben.
Institutional investor
s in the Kennet III fund include Access Capital Partners, Adveq, Alpha Associates, BNP Private Equity, Credit Suisse
, European Investment Fund
, LGT Capital Partners and Siemens
.
in a company and invests in founders that have bootstrapped their companies to $10 million or more in annual sales. Although Kennet focuses primarily on expansion capital
, the firm also purchases shares from founders or earlier investors in certain cases.
Since inception, Kennet has invested in over 35 companies, of which, Kennet's most notable exits include Altitun, Paragon Software , No Wires Needed, Cramer Systems
, Chipidea and Adviva Media
Other investments include:
, TA Associates
and Insight Venture Partners
. In Europe, Kennet competes with firms such as Fidelity Ventures
, Atlas Venture
, Wellington Partners and the growth equity arm of Index Ventures
. Competitors in the U.S. include JMI Equity
and Summit Partners
' Accelerator Fund.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investment firm that provides growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
to information technology
Technology
Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...
, Internet and business services companies in Europe and the US.
Kennet Partners is headquartered in London, England, and has an office in Foster City, California
Foster City, California
Foster City is an affluent planned city located in San Mateo County, California, 94404. As of the 2010 census, the city had a total population of 30,567. Forbes ranked Foster City #10 on their 2009 list of America's Top 25 Towns to Live Well. Money has also recognized Foster City multiple times as...
. The firm raised its third fund in 2008 with €201 million, bringing total capital under management to over $600 million.
Founding / history
Kennet was founded in 1997 as Kennet Capital, a joint venture between technology investment bank Broadview International and asset management firm Electra Partners. In 2000, Kennet became a wholly owned subsidiary of Broadview. Following the downturn in the global technology markets, the partners of Kennet completed a management buy-out and became independent in April 2003.Kennet's first fund was primarily targeted at early-stage technology investments in Europe. With its second fund, Kennet began making growth equity investments in both Europe and the U.S., and today the firm focuses exclusively on providing growth capital.
Kennet Partners was founded by Michael Elias. The current partners are Michael Elias, David Carratt, Javier Rojas and Maximilian Bleyleben.
Funds and investments
From founding in 1997 to June 2008, Kennet has raised three funds:- 1997 Kennet I LP (£48.3 million)
- 2000 Kennet II LP ($204 million)
- 2008 Kennet III LP (€201 million)
Institutional investor
Institutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
s in the Kennet III fund include Access Capital Partners, Adveq, Alpha Associates, BNP Private Equity, Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
, European Investment Fund
European Investment Fund
The European Investment Fund, established in 1994, is a European Union agency for the provision of finance to SMEs headquartered in Luxembourg....
, LGT Capital Partners and Siemens
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
.
Investments
Kennet is often the first institutional investorInstitutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
in a company and invests in founders that have bootstrapped their companies to $10 million or more in annual sales. Although Kennet focuses primarily on expansion capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
, the firm also purchases shares from founders or earlier investors in certain cases.
Since inception, Kennet has invested in over 35 companies, of which, Kennet's most notable exits include Altitun, Paragon Software , No Wires Needed, Cramer Systems
Cramer Systems
Cramer Systems, founded in 1996 by Jon Craton and Don Gibson develop operations support systems OSS systems for the telecommunication industry Cramer Systems, founded in 1996 by Jon Craton and Don Gibson develop operations support systems OSS systems for the telecommunication industry Cramer...
, Chipidea and Adviva Media
Other investments include:
Competitors
Kennet's investment strategy is similar to that of other growth capital investment firms such as Summit PartnersSummit Partners
Summit Partners is a growth equity investment firm focusing on a wide array of transactions from leveraged buyouts and recapitalizations to growth capital, venture capital investments, and mezzanine capital....
, TA Associates
TA Associates
TA Associates, founded in 1968, is one of the oldest private equity firms in the United States. The firm employs a hybrid strategy making growth capital investments in developing companies and acquiring mature companies through leveraged buyout and recapitalization transactions...
and Insight Venture Partners
Insight Venture Partners
Insight Venture Partners is a New York-based private equity and venture capital firm founded in 1995 by Jeff Horing and Jerry Murdock. The firm focuses exclusively on software and Internet-enabled businesses and currently has a capital base of approximately $5 billion.The firm’s Executive Advisory...
. In Europe, Kennet competes with firms such as Fidelity Ventures
Fidelity Ventures
Fidelity Ventures is the venture capital arm of Fidelity Investments. Based in Boston, Massachusetts and London, Fidelity Ventures invests in emerging technology companies in North America and Europe. Their focus is on the go-to-market stage, where companies have products and early customer...
, Atlas Venture
Atlas Venture
Atlas Venture is an international early-stage venture capital firm that invests in communications, information technology, and life sciences companies. From the late 1990s through the mid-2000s the firm was leading investor in startup companies in both the U.S. and Europe...
, Wellington Partners and the growth equity arm of Index Ventures
Index Ventures
Index Ventures is a venture capital investment firm based in Geneva, Switzerland, with offices in London, Jersey, and starting in 2011, Silcon Valley. The firm was founded in 1996 by Neil Rimer and Giuseppe Zocco. Since its inception, the firm has raised four main venture funds and a growth...
. Competitors in the U.S. include JMI Equity
JMI Equity
JMI Equity is a growth equity firm focused on investing in leading software, internet, business services and healthcare IT companies. JMI provides capital for growth, recapitalizations, acquisitions and buyouts. Founded in 1992, JMI has invested in more than 100 companies throughout North...
and Summit Partners
Summit Partners
Summit Partners is a growth equity investment firm focusing on a wide array of transactions from leveraged buyouts and recapitalizations to growth capital, venture capital investments, and mezzanine capital....
' Accelerator Fund.
Further reading
- How Much Bootstrapping Is Enough Javier Rojas, SoftGram 2008.
- A Q&A with Jon Craton, Founder, Cramer Systems Sandhill.com, 14 August 2008.
- How to convert to SaaS Sandill.com, June 2008.
- Bootstrapping, over crowding and capital efficiency: a contrarian view Prakash Muralidharan, Thoughts from the trench, 17 March 2007.
- Have you considered bootstrapping your business for success? Javier Rojas, Opportunity World, July/August 2006.
- Strategic Entrepreneurship: Why it is better to be bootstrapped than well-heeled Jonathan Guthrie, 7 December 2005.
- El Ciclo del Capital riesgo en Europa: Su gestion y aportaction de valor FUNDACIÓN DE ESTUDIOS FINANCIEROS, March 2005.
External links
- Kennet Partners(company website)
- Tornado Insider Profile
- The Funded.com Kennet Partners profile
- PSEPS Directory
- Datamonitor Profile