ISAI EXPANSION ANNOUNCES THE FIRST CLOSE OF ITS THIRD TECH BUYOUT FUND, SURPASSING 75% OF ITS FINAL TARGET SIZE
This is a successful start for ISAI Expansion III, a pioneer in Tech Buyout investment in France, as it exceeds expectations by raising nearly €190m in its initial closing, above its 1st closing target (€150m).
Having reached 75% of its final target size (€250m), the new fund exceeds the size of its predecessor ISAI Expansion II (€150m). ISAI Expansion III received strong support from Tech / Digital entrepreneurs, representing 40% of this fundraising. New entrepreneurs also join ISAI’s community of over 400 entrepreneurs-LPs from the Tech and Digital sector.
The Fund is also backed by renowned Institutional investors, including repeat investors such as Crédit Mutuel Arkéa, Eurazeo and Bpifrance[1]; and new investors such as the European Investment Fund, BNP Paribas Développement and a large US-based investment manager with $500bn+ of AUM.
Pierre Martini, Managing Partner of ISAI and head of the Expansion strategy, commented: “We are particularly pleased with this milestone, which rewards more than 10 years of market presence and leadership. ISAI continues to be a strong magnet for entrepreneurs in our sector; they are our DNA, and essential to ISAI's value proposition as a financial partner. “
Caroline Gibert, Head of Investor Relations & ESG, added: “This 1st close also demonstrates ISAI's ability to meet the needs of institutional investors - including international partners - in terms of performance, transparency, reporting, ability to offer co-investment and ESG. Several of them are backing us for the first time. We would like to thank all our LPs, both existing and new, for their confidence. “
A high value-added positioning combining Growth and Profitability in the Tech Buyout segment
This fundraising is the result of establishing a unique positioning and track record since 2013. Created "by and for entrepreneurs", ISAI Expansion has become the partner of choice for Tech and Digital entrepreneurs looking to accelerate their profitable growth strategy and gain access to ISAI's expertise and unrivalled network within this ecosystem.
Over the past 10 years, ISAI Expansion has supported 19 companies and successfully exited nine of them (including six via secondary LBOs), such as aDvens, Labelium and more recently Pandat Finance and Invoke.
“With an entrepreneur-centric DNA, our strength lies in supporting entrepreneurs undertaking their first growth or LBO deal. With our core values of rigour and goodwill, we help them scale, structure their business to accelerate their development in France or abroad, and reach strategic value in their market. “ explained Jean-David Chamboredon, CEO and co-founder at ISAI.
“Profitable growth is at the core of our investment and value creation strategy. This implies limited financial leverage, which makes our portfolio companies more resilient across economic cycles. By way of illustration, the average annual growth of our portfolio companies has been close to 30% since our investment date.“ continued Nicolas Martineau, General Partner at ISAI Expansion.
ISAI Expansion III will be led by the same team and follows the same strategy as its predecessor, aiming to support 12 to 15 companies with investment of between €10m and €50m (plus possible co-investment by our LPs), taking minority or majority stakes in France, Spain, Switzerland and the Benelux. Two types of transactions will be pursued:
Growth Buyout transactions in companies with revenues of €10m or more; and,
Growth investments in companies with annual growth rates in excess of 25-30% (Tech Growth).
“We are targeting resilient, proven Tech business models (such as SaaS, B2B services, marketplaces, etc.) with high gross margins, as well as "Tech-enabled" companies operating in traditional sectors, whose digital approach is delivering above-market growth and profitability. “, concluded Christophe Poupinel, General Partner at ISAI Expansion.
ISAI Expansion III, classified as Article 8 under the SFDR regulations, will continue its fundraising over 2024 to reach its target size of €250m.
About ISAI Expansion
For over 10 years, ISAI Expansion has been supporting Tech and Digital entrepreneurs who have chosen the path to profitability via Tech Buyout or Tech Growth operations. ISAI Expansion selects profitable, fast-growing companies with revenues of at least €10 million and invests, either as a majority or minority shareholder, alongside the founders and/or managers. ISAI Expansion has also supported numerous successful Tech successes, including Labelium, aDvens, Theodo, Invoke and Pandat Finance.
ISAI Expansion is a strategy of ISAI Gestion (« ISAI »), one of the pioneers in the French Tech ecosystem. Co-founded in 2009 " by and for " Tech entrepreneurs, ISAI gathers today more than 400 Entrepreneurs-LPs alongside major Institutional investors.
With offices in Paris and NYC, ISAI manages €815m across four investment strategies: Early-Stage Venture, Corporate Venture, Growth Lending and Tech Buyout.
The company is a UNPRI signatory and a committed player in inclusive and low-carbon Tech.
About Bpifrance
Bpifrance Investissement is the management company that handles Bpifrance's equity investments. Bpifrance is the French national investment bank. It finances businesses – at every stage of their development – through loans, guarantees, equity investments and export insurances. Bpifrance also provides extra financial services (training, consultancy) to help entrepreneurs meet their challenges (innovation, export…).
For more information, please visit: www.bpifrance.fr and presse.bpifrance.fr - Follow us on Twitter: @Bpifrance - @BpifrancePresse
About the European Investment Fund
The EIF is part of the EIB Group. Its main goal is to support microenterprises and small businesses by helping them to access finance and venture capital. The EIF also actively supports climate fund investments with a strong focus on environmental sustainability. Its activities foster EU objectives promoting innovation, research and development, entrepreneurship, growth and job creation.
Website: www.eib.org/press; Press Office: +352 4379-21000 — press@eib.org
Contact: Christophe Alix, c.alix@eib.org tel.: +352 4379-84303; mobile: +33 6 11 81 30 99
About Eurazeo
Eurazeo is a leading European investment group with €33.5bn in diversified assets under management, including €23bn on behalf of institutional and private clients through its private equity, private debt, real estate and infrastructure strategies. The Group supports more than 600 mid-market companies, leveraging the commitment of its 400 employees, its sector expertise, its privileged access to global markets via 12 offices in Europe, Asia and the United States, and its responsible approach to value creation based on growth. The company's institutional and family shareholding structure, and its solid financial structure, ensure its long-term viability.
Eurazeo has offices in Paris, New York, London, Frankfurt, Berlin, Milan, Madrid, Luxembourg, Shanghai, Seoul, Singapore and Sao Paulo.
Eurazeo is listed on Euronext Paris.
ISIN: FR0-00121121 - Bloomberg-: RF FP - Reuters: EURA.PA.
About the Crédit Mutuel Arkéa group
The Crédit Mutuel Arkéa cooperative group comprises the Crédit Mutuel de Bretagne and Sud-Ouest federations and their member local banks, as well as some forty specialised subsidiaries (Fortuneo, Monext, Arkéa Banque Entreprises et Institutionnels, Arkéa Investment Services, Suravenir, etc.). By the end of 2022, it will have more than 11,000 employees, 2,600 directors, over 5.1 million members and customers, and total assets of €189.1 billion.
The first banking group to adopt a Mission Statement in 2019, Crédit Mutuel Arkéa became a company with a mission in 2022 and, through its "Transitions 2024" strategic plan, is committed to providing finance that serves local and regional authorities and their stakeholders, in order to position itself as an agile and innovative financial partner for the transitions of the future.
With a nationwide presence, Crédit Mutuel Arkéa has chosen to keep its decision-making centres in the regions. It is a major player in job creation in its regions and relies on an ongoing recruitment drive. The Group is convinced that local development can only be achieved by combining financial and non-financial considerations. This is why Crédit Mutuel Arkéa is the first French bank to have developed a unique method for calculating overall performance. This enables it to take into account all the financial, social, societal and environmental impacts of its activities and those of its stakeholders.
Contact : Solen Deltour - 06 30 80 38 78 - solen.deltour@arkea.com
About BNP Paribas Développement
BNP Paribas Développement is an independent subsidiary of BNP Paribas which has for more than 30 years taken minority stakes in successful SMEs to support their growth and secure their long-term development by facilitating their transmission. In addition to providing the financial resources that permit stability, BNP Paribas Développement's mission is to assist management teams in carrying out strategic medium-term projects. As a minority shareholder we provide our partners with appropriate governance without interference in day-to-day management. They also benefit from the strength of a leading banking group and the experience of a partner with more than 500 diversified investments.
Website: https://www.bnpparibasdeveloppement.com/
LinkedIn: https://www.linkedin.com/company/bnp-paribas-développement
Contact: Céline Argy – celine.argy@bnpparibas.com – 06 64 46 60 46
Press contacts
ISAI |Caroline Gibert | caroline.gibert@isai.fr | M : +33 (0)6 99 91 06 60
Kablé Communication | Nolwenn Salaün | nolwenn.salaun@kable-communication.com |M : +33 (0)6 68 41 54 32
[1] Bpifrance invests via its balance sheet and its Growth fund of funds on behalf of private insurers and Caisse des Dépôts.