Schroders leads on Emeram single-asset continuation fund

Schroders Capital has acted as lead investor in a single-asset continuation vehicle of German buyout manager Emeram Capital Partners’ portfolio company Init, Secondaries Investor has learned.

Munich-based Emeram, which makes mid-market investments in the German-speaking region, completed the transfer of Init from EMERAM Capital Partners Fund I, according to three sources familiar with the transaction.

Unigestion also participated in the deal which closed on 31 May, according to one of the sources.

“We are excited about backing the company alongside Emeram Capital Partners in the next stage of growth,” Christiaan van der Kam, head of secondaries at Schroders Capital, told Secondaries Investor, confirming the firm’s participation in the deal. Schroders followed the digital transformation service provider for three years, he added.

It is understood that Raymond James advised Emeram on the transaction.

Emeram initially invested in Init in 2019 with Gilde Buy Out Partners, which rebranded to Rivean Capital in February, acquiring a minority stake in the business late last year. Emeram maintained its shares in Init as the same level as Gilde, according to a statement at the time.

Gilde is understood to not have participated in the single-asset continuation fund.

Founded in 1995, Germany’s Init provides digital transformation options for the public sector and industry. In December, Emeram and Rivean said they would support the company’s growth through organic and inorganic means and look to expand the business  internationally.

Emeram’s Fund I raised €350 million by final close in 2014, having launched the year before, according to PEI data.

The transfer of Init is the second continuation fund Emeram has undertaken recently. In December the firm said it had closed a single-asset continuation vehicle for water sports and bike equipment platform Boards & More. The transaction was led by Coller Capital with Raymond James also advising.

Secondaries transaction volume reached approximately $134 billion last year, according to data from Evercore, marking a 124 percent increase year-on-year, it said in its latest Secondary Market Survey report. Single asset deal volume doubled to $32 billion year-on-year, accounting for 47 percent of GP-led volume.

Schroders Capital is in market with its latest flagship secondaries fund targeting $400 million, Secondaries Investor reported in February. The London-based manager had raised $293 million for Schroders Capital Private Equity Secondaries IV, according to an SEC filing dated 22 February.

Emeram and Raymond James declined to comment. Unigestion did not respond to request for comment by press time. All parties, including Schroders, declined to comment on financial details of the transaction.