We are pleased to announce the successful first and final closing of Potentia Capital Fund II (the ‘Fund’) at its AUD 635 million hard cap (including GP commitment). The Fund was oversubscribed, surpassing its target fund size of AUD 500 million, and the hard cap was increased. Potentia’s total assets under management now stand in excess of AUD 1 billion.
Acting as the exclusive global fundraising adviser, Asante Capital are thrilled to continue partnering with Potentia, having previously advised on Potentia Capital Fund I, which held its final closing in 2021.
In an almost wholly virtual fundraise, the Fund saw strong support from a diversified group of both new and existing institutional investors, with high conviction on Potentia’s robust market position and highly experienced team. Fund II investors include a mix of asset managers, consultants, insurance companies, family offices, foundations, fund of funds and superannuation schemes from the US, Europe, Australia and Asia.
Potentia looks to continue generating value through specialist sourcing and swift and high impact transformational partnerships with portfolio companies to accelerate growth trajectories. Looking ahead to Fund II, Potentia expects more of a focus on New Zealand-based companies, and the firm intends to appoint an executive in Singapore to scout for Asia-based bolt-on opportunities.
Potentia has completed nine platform investments and eight bolt-on acquisitions to date, with notable portfolio companies including leading global mining software provider Micromine; leading instore terminal integration software and online payment gateway services provider Linkly, and leading specialist B2B eCommerce platform technology provider Commerce Vision. The Firm notably exited HCM and Payroll Software and Services company Ascender at 16.4x MoC in February 2021, and more recently compliance software solutions provider CompliSpace at 4.7x MoC. Potentia continues to see strong pipeline activity and expects to close its first platform deal in Fund II second half of 2022.
“We are extraordinarily proud and grateful for the support L.P.s, both new and existing, have shown us through this fundraising,” said Andrew Gray, Founder & Managing Director of Potentia. “We founded Potentia believing that a sector specific focus to growth and buyout investing in the Australasian market would allow us to form deeper partnerships with management teams, drive faster transformation and ultimately deliver superior returns – it is great to see so much support for this vision.”
Tim Reed, Managing Director of Potentia added: “The entire Potentia team are excited about the investments this fundraise will facilitate, the founders & management teams we will be able to back, the clients those businesses will be able to support and the returns those investments will generate. At our core we believe technology is improving the world – making it safer, more productive, lowering environmental footprints and enabling better outcomes. Potentia Fund II will allow us to achieve these outcomes at an even greater scale.”
Potentia Capital is a leading Australasian growth capital and buy-out manager focused on software and technology-enabled businesses. The firm focuses on investments in Australasian-headquartered, middle market technology businesses with proven business models and significant potential for growth. The investment team collectively bring over 100 years of collective experience as investors and entrepreneurs in the technology space.
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