UK’s Volpi Capital eyes continuation fund for software assets

The firm wants to move CycloMedia and Digital Barriers into a separate vehicle with as much as €300m in NAV.

European software specialist Volpi Capital is working on a process to give it more time and runway to manage two software companies focusing on surveillance and security, and environment visualisation, Secondaries Investor has learned.

The European mid-market firm wants to move CycloMedia and Digital Barriers out of its 2018 Volpi Capital Fund I into a continuation vehicle, according to two sources familiar with the matter.

Secondaries Investor understands the net asset value of the two assets is between €250 million to €300 million.

Rede Partners is advising on the transaction, according to the two sources.

Fund I closed on €185 million and received backing from investors including CT Private Equity Trust PLC, according to PEI data, which shows that Rede was placement agent on the fund.

London-headquartered Volpi acquired Digital Barriers in 2017. The company provides edge-intelligent software and cloud services for the global surveillance and security markets, according to its website. The following year, Volpi invested in CycloMedia, which provides data and software that replicates the outside world accurately on screen, according to its website.

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.

Volpi did not return a request for comment. Rede declined to comment.