Ex-Warburg Pincus Dealmakers Beat Target for First Tech Fund
Ex-Warburg Pincus Dealmakers Beat Target for First Tech Fund
(Bloomberg) -- Corten Capital, an investment firm co-founded by two former Warburg Pincus dealmakers, has brushed off investor jitters over the coronavirus pandemic to raise 392 million euros ($441 million) for its first technology fund.
The firm surpassed its initial target of 300 million euros, London-based Corten said in an emailed statement Tuesday. The fund will invest in just two or three companies in the tech-enabled business services, information and software sectors in Europe and North America, according to the statement.
Technology dealmaking is down 48% by value this year, in line with the fall in the volume of global mergers and acquisitions, data compiled by Bloomberg show. Still, a string of big-ticket transactions announced in recent days is bringing hope of a recovery.
Automating Business
Despite the challenging market, Founding Partner Simon Begg said there are opportunities for tech investors.
“Our fund close is very timely in view of the current economic backdrop, which creates uncertainty but also accelerates the imperative to digitalize and automate business operations across industries globally,” he said in the statement.
Corten will hold its investments for seven to eight years and use the capital at its disposal to help the companies it buys expand geographically and through potential acquisition. The fund received backing from university endowments and family offices across Europe, the U.S. and Asia, according to the statement.
Begg and Corten Managing Partner Joseph Schull previously spent about a decade working together at private equity firm Warburg Pincus, where they invested in businesses in the technology, media and telecommunications industry in Europe. They launched Corten in 2019 alongside Andrew Sukawaty, chairman of satellite operator Inmarsat Group Holdings Ltd., and Don Robert, chairman of the London Stock Exchange Group Plc.
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