Schroders backs Volpi’s software assets continuation fund

The deal, advised on by Rede Partners, is understood to be worth between €250m and €300m.

Schroders Capital has emerged as the lead backer of a continuation fund involving Volpi Capital, three months after Secondaries Investor reported the manager was running a process on its debut fund.

The European software specialist moved the interests held in Cyclomedia and Digital Barriers out of Volpi Capital Investments into a vehicle named Volpi Capital Investments Conti, according to a statement.

The size of the continuation fund is in the €250 million to €300 million range, Secondaries Investor previously reported.

The transaction means Fund I is now fully realised.

Some investors rolled over their exposure into the continuation fund, with new investors and Volpi team members also committing capital.

The management team of Cyclomedia – a Netherlands based provider of intelligent street-level geospatial data and information – as well as Volpi Capital Investments III, will co-invest alongside the continuation fund in the asset, the statement noted.

Crevan O’Grady, a partner at Volpi, said the continuation fund allows the firm to build on “solid foundation” it had built for Cyclomedia to take it through the next phase of the firm’s value creation plans.

Rede Partners advised on the transaction, with Stephenson Harwood and providing counsel to Schroders and Allen & Overy and Macfarlanes providing joint legal counsel to Volpi.

More than half of Volpi’s investors are funds of funds and insurance companies, according to its website. The firm was founded in 2016 by Marco Sodi, former head of Europe at Veronis Suhler Stevenson, and Crevan O’Grady, former head of TMT at 3i. It typically invests €25 million to €75 million of equity in businesses with enterprise values between €50 million and €200 million.

Schroders’ latest secondaries fund is its Schroders Capital Private Equity Secondaries IV vehicle, according to Secondaries Investor data. The fund has a $400 million target.