Buyers in €235m continuation fund for DACH asset disclosed

Glendower Capital, Hayfin, Abrdn and Golding Capital Partners have emerged as the backers of an over €235 million single-asset continuation fund.

DACH-focused B2B software investor Maguar Capital has moved human capital management software provider HRworks into the vehicle. Maguar initially backed HRworks in 2020 through its €104 million Maguar Capital I fund, which closed in 2021.

The firm’s Maguar Capital II – which is in market with an undisclosed target, according to PEI data – has also invested in the continuation fund alongside additional global institutional investors and HRworks’ management team, according to a statement from transaction adviser Asante Capital Group which contained details of the buyers.

Maguar had first disclosed the transaction in a May statement.

The continuation fund received “high interest and demand, significantly above its capacity”, according to a statement from Maguar. The transaction marks the first exit from Maguar’s inaugural fund.

A number of European continuation funds have closed of late. London-headquartered Charterhouse Capital Partners moved speciality pharmaceutical group SERB out of its 2016 Charterhouse Capital Partners X fund and into a separate vehicle, attracting backing from Goldman Sachs Asset Management, CPP Investments and Hamilton Lane, Secondaries Investor reported last week.

Pan-European mid-market investor Oakley Capital moved German university group IU Group into a continuation fund, Secondaries Investor reported in May. TPG GP Solutions, HarbourVest Partners, Goldman Sachs Asset Management, Glendower Capital and Pantheon backed the deal, according to a later statement about the transaction. The vehicle is understood to be €1.2 billion in size.

New York-headquartered mid-market investor One Equity Partners also closed a $1 billion continuation fund for two Europe-headquartered assets in a transaction co-led by AlpInvest Partners and Harbourvest.