Berlin/Hamburg – YPOG provided comprehensive advice to FLEX Capital on the closing of its second fund totaling €300 million. With the second fund, FLEX was able to more than double the fund size to the first fund in 2019 in the amount of €126 million.
The new fund is a trading fund that enables FLEX Capital to provide operational support to its future portfolio companies in addition to financial investment. Investors include funds of funds, institutional investors such as asset managers and university endowments from Europe and the USA, the founders of successful tech companies including the founders of FLEX portfolio companies, and an FC Bayern soccer player.
The fund is backed by the software and tech entrepreneurs Christoph Jost, Peter Waleczek, Felix Haas, Jan Becker, Andreas Etten and Dr. Robert Wuttke. Today, the companies they founded employ over 1,500 people on six continents and generate revenues in excess of €100 million. Their investment track record includes over 140 investments in companies with a total enterprise value of more than €10 billion.
Since its founding in 2019, FLEX Capital has acquired majority stakes in thirteen mid-sized software companies and taken them to their next growth stage. For example, in just 2 years, QR software company Egoditor grew revenue by 250% while growing EBITDA by 340%. The exit to a US software company in private equity hands directly paid back more than the entire first fund.
In the DACH region, there are 11,000 medium-sized Internet and software companies, hidden champions, which generate between €5-30 million in sales per year. These companies have been in existence for several years and can demonstrate a certain stability in the market. They have an established customer base and an excellent track record. For private equity funds, investments in companies with such profiles are interesting because they offer great return opportunities and lower risk.
