Potentia announces first and final close of Fund II at AUD 635 million hard cap

Potentia Capital (‘Potentia’), Australasia’s leading technology-focused, growth capital and private equity firm, is 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 A$500 million. Potentia’s total assets under management now stand in excess of AUD 1 billion.

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.

Building on its reputation as the leading Australasian growth capital and buy-out manager focused on software and technology-enabled businesses, Potentia focuses on investments in Australasian-headquartered, middle market technology businesses with proven business models and significant potential for growth. 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, there will also be 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.”

Asante Capital Group acted as Potentia’s exclusive global fundraising adviser, with Herbert Smith Freehills acting as fund legal adviser and EY as tax adviser.