Verdane exits car software maker from Fund VII

The Nordic direct secondaries firm had built up a 55% stake in Movimento, which counts GM, Fiat Chrysler and Volvo among its customers.

Verdane Capital has sold a vehicle software maker held in its 2010-vintage fund, six years after acquiring a 45 percent stake in the company.

The Nordic direct secondaries firm exited Movimento, a maker of products that allow car manufacturers to send software and firmware updates to vehicles wirelessly, to New York-listed Delphi Automotive, according to a statement. The deal closed on 3 January.

“Movimento is fundamentally built on expertise from two sectors where Sweden has an edge; software and automotive,” Bjarne Lie, managing partner at Verdane, said in the statement. “We are proud to have contributed on Movimento’s global journey and we believe that Delphi is an excellent owner for the next phase.”

Verdane increased its stake in Movimento, whose customers include GM, Fiat Chrysler and Volvo, to around 55 percent after acquiring the asset in a 2010 fund restructuring deal, according to a Verdane spokeswoman. In that transaction, Verdane used its SKr1.5 billion ($166 million; €157 million) Verdane Capital VII fund to acquire limited partnership interests held in two funds managed by Nordic technology-focused private equity firm Eqvitec Partners.

Verdane VII has at least 10 remaining assets which are driving value, the spokeswoman said. She declined to comment on financial details of the exit or the performance of the fund.

Verdane is investing its Verdane Capital IX vehicle which closed on SKr3 billion during the summer after four months of fundraising, according to PEI data. The fund backs small- to medium-sized businesses in software, consumer internet, energy and technology sectors and made its first transaction in October, with a more than €30 million investment in three German companies.

Morgan Stanley acted as Verdane’s exclusive financial advisor on the Movimento deal.

Verdane has €900 million in assets under management and employs 24 staff and has offices in Stockholm, Oslo and Helsinki.