Nordics-focused LP firm Monterro announces final close of small-cap fund at €150m hard cap

Nordics-focused LP firm Monterro announces final close of small-cap fund at €150m hard cap

Published: 27-01-2023 12:06:00 | By: Pie Kamau | hits: 349 | Tags:

Monterro, the Nordic B2B software investor, announced the final close of Monterro G1 at its €150m hard cap, including a 24% GP commitment. The Fund was oversubscribed and raised entirely from existing investors. The closing of G1 follows the successful close of Monterro’s fourth Fund, M4, in November 2021 at its €700m hard-cap, and takes Monterro’s total capital raised to >€1.2 billion.

G1 was established to target the significant opportunity in B2B software in the Nordic lower mid-market, enhancing Monterro’s first-look position in the segment. The Fund will follow the same strategy as a hands-on, operationally-led growth investor and will leverage the Firm’s powerful sector expertise, unique value creation model and extensive SaaS network. Through this offering, Monterro’s entrepreneurial DNA and operational mindset will provide an unmatched value proposition for Nordic SaaS small-cap and earlier-stage businesses in both majority and minority deals.

Thomas Bill Revland, Co-founder and Managing Director, Monterro: “The success of the G1 fundraise confirms the strong momentum behind our investment strategy – backing B2B software businesses in the Nordic region. G1 enhances Monterro’s ecosystem and enables us to invest in and transform small-cap and earlier stage businesses. We are delighted to have received strong support from our existing investors for G1, as well as securing commitments from our team and entrepreneurs from our portfolio companies, reflecting our culture of long-term alignment”.

G1 received overwhelming support from the Firm’s blue-chip, international investor base with an >80% re-up rate in a heavily oversubscribed and expedited process. Alongside the Monterro team, several entrepreneurs from Monterro’s portfolio companies also invested, demonstrating Monterro’s culture of pure alignment. Monterro has also made its first investment out of the G1 Fund, a majority stake in Swedish configure-price-quote specialist, Spark Vision, directly from its founding management.

The successful close of G1 follows Monterro’s continued delivery of market leading returns across its Funds, with M1 – M3 being amongst the best performing in Europe. 2022 has been a busy year at Monterro, with M1 (2012) liquidated having generated top-decile returns, the delivery of two successful exits, Outpost24 (M2) and Matilda FoodTech (M1), five add-ons across the M3 portfolio and four new investments in M4, including a reinvestment in Matilda FoodTech. The Monterro team also continues to grow, with 13 members joining the team the last twelve months, across Monterro’s four offices.

Gustav Lagercrantz, CEO, Monterro: “We are deeply embedded within the B2B segment in the Nordic and are excited by the opportunity to invest the G1 Fund. By utilising M.Fusion, our unique, operationally-focused value creation model, and the Scandinavian Software Park in Hanoi, we bring much needed capital, know-how, and experience to entrepreneurs looking to transform small-cap and earlier stage businesses. As a team, we look forward to working alongside them to build successful software champions and continuing to deliver exceptional returns for our investors.”

Rede Partners and Andulf Advokat supported Monterro on this fundraise.