Kennet Partners

Infobox_Company
company_name = Kennet Partners
company_
company_type = Limited company
foundation = 1997
key_people = Michael Elias, David Carratt, Javier Rojas
location = flagicon|UK London, England
flagicon|USA Foster City, California

industry = Private Equity
products = Private equity funds
assets = $600 million
homepage = [http://www.kennet.com www.kennet.com]
num_employees = 15

Kennet Partners is a private equity investment firm that provides growth capital to information technology, Internet and in Europe and the US.

Kennet Partners is headquartered in London, England, and has an office in Foster City, California. The firm raised its third fund in 2008 with €201 million, bringing total capital under management to over $600 million." [http://www.altassets.com/news/arc/2008/nz13873.php Kennet closes third fund on €200m] " AltAssets, July 24, 2008]

Founding / history

Kennet was founded in 1997 as Kennet Capital, a joint venture between technology investment bank Broadview International and asset management firm Electra Partners. In 2000, Kennet became a wholly-owned subsidiary of Broadview. Following the downturn in the global technology markets, the partners of Kennet completed a management buy-out and became independent in April 2003. [ [http://www.altassets.com/news/arc/2003/nz1925.php UK Kennet Venture Partners spins out from Broadview] AltAssets, 31 March 2003] Kennet's first fund was primarily targeted at early-stage technology investments in Europe. With its second fund, Kennet began making growth equity investments in both Europe and the U.S., and today the firm focuses exclusively on providing growth capital.

Kennet Partners was founded by Michael Elias. The current partners are Michael Elias, David Carratt, Javier Rojas and Maximilian Bleyleben. [ [http://www.kennet.com/who-we-are/ Company website: Who We Are] ]

Funds and investments

From founding in 1997 to June 2008, Kennet has raised three funds:
* 1997 Kennet I LP (£48.3 million)
* 2000 Kennet II LP ($204 million)
* 2008 Kennet III LP (€201 million) [ [http://www.tornado-insider.com/radar/compShow.asp?compID=7478 Kennet Partners] (Tornado Insider profile)]

Institutional investors in the Kennet III fund include Access Capital Partners, Adveq, Alpha Associates, BNP Private Equity, Credit Suisse, European Investment Fund, LGT Capital Partners and Siemens.

Investments

Kennet is often the first institutional investor in a company and invests in founders that have bootstrapped their companies to $10 million or more in annual sales. Although Kennet focuses primarily on expansion capital, the firm also purchases shares from founders or earlier investors in certain cases.

Since inception, Kennet has invested in over 35 companies, [ [http://www.kennet.com/the-kennet-portfolio/ Company website:portfolio] ] of which, Kennet's most notable exits include Altitun [ [http://www.efinancialnews.com/homepage/content/585872 Record Exit for Kennet] eFinancial News, 22 May 2000.] , Paragon Software [ [http://www.accessmylibrary.com/coms2/summary_0286-27610182_ITM 3i and Kennet sell Paragon of Virtue] European Venture Capital Journal, 1 March 2000.] [ [http://www.mobileinfo.com/news/news_2000_issue06/Phone_Paragon_soft.htm Phone.com acquires Paragon Software] Mobile Info, 11 February 2000.] , No Wires Needed [ [http://eetimes.com/news/semi/showArticle.jhtml?articleID=10811813 Intersil to acquire No Wires Needed] EE Times, 27 April 2000.] , Cramer Systems [ [http://telephonyonline.com/software/finance/amdocs_cramer_acquisition_071806/ Amdocs acquires Cramer Systems for $375 million] Telephony Online, 18 July 2006] , Chipidea [ [http://www.kennet.com/portfolio/case-stories/chipidea-microelectronica/ Kennet website: Chipidea case study] ] [ [http://www.silicontap.com/mips_buys_chipidea/s-0010880.html MIPS buys Chipidea] Silicon Tap, 27 August 2007.] and Adviva Media [ [http://www.clickz.com/showPage.html?page=3628737 Specific Media's Adviva Buy Aimed at Behavioral Growth in UK] ClickZ, 13 March 2008.] [ [http://news.cnet.com/8301-10784_3-9891485-7.html Specific Media acquires UK-based Adviva] Tech news blog - CNET New.com, 12 March 2008.]

Other investments include:

columns | g

col1 =
* Aspective [ [http://www.twst.com/notes/articles/lzt096.html Interview with FD Mike Banwell, Aspective Limited] TWST.com, 19 January 2004.]
* Consul Risk Management
* Clearswift
* Cramer Systems [ [http://www.sandhill.com/rss/redirect.php?name=daily_blog&id=62&post=442 A Q&A with Jon Craton, Founder, Cramer Systems] Sandhill.com, 14 August 2008. ]
* Daptiv (fka eProject) [ [http://venturebeat.com/2007/11/12/eproject-becomes-daptiv-aims-to-take-over-ppm-market/ eProject becomes Daptiv] VentureBeat, 12 November 2007.]
* FRSGlobal [ [http://www.bobsguide.com/cgi-bin/guide/profile.pl?id=bg&vcode=fire&assoc=&mode= Bob's Guide] FRSglobal profile]
* Intelepeer (fka VoEX)

col2 =
* Kapow Technologies
* Medefinance [ [http://www.kennet.com/portfolio/case-stories/medefinance/ Kennet website: MedeFinance case study] ]
* Monis Software
* NetPro
* NTRglobal [ [http://www.thechilli.com/articles/chilliBites/093_ntrglobal_funding.asp NTRglobal garners €22m] The Chilli.com, 19 June 2008.] [ [http://blogs.zdnet.com/SAAS/?p=543 $34m VC round for Spanish SaaS Venture] Phil Wainewright: Software as Services, 30 June 2008.]
* Orchestream

col3 =
* Recommind
* Sequans Communications [ [http://www.eetimes.eu/semi/207801197 Sequans extends mobile WiMAX chip series] EETimes.com, 20 May 2008. ]
* STS BV [ [http://www.thealarmclock.com/euro/archives/2007/08/dutch_wireless_audio_1.html Dutch Wireless Audio Startup Raises First Round] alarm:clock euro, 13 August 2007.]
* Telemedicine Clinic [ [http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=9206384 Private Company snapshot] Business Week, September 2006]
* TradingPartners
* Volantis Systems

Competitors

Kennet's investment strategy is similar to that of other growth capital investment firms such as Summit Partners, TA Associates and Insight Venture Partners. In Europe, Kennet competes with firms such as Fidelity Ventures, Atlas Venture, Wellington Partners and the growth equity arm of Index Ventures. Competitors in the U.S. include JMI Equity and Summit Partners' Accelerator Fund.

References

Further reading

* [http://www.softletter.com/pages/Files/SoftGram_2008/sg_vol_4_no_10.html How Much Bootstrapping Is Enough] Javier Rojas, SoftGram 2008.
* [http://www.sandhill.com/rss/redirect.php?name=daily_blog&id=62&post=442 A Q&A with Jon Craton, Founder, Cramer Systems] Sandhill.com, 14 August 2008.
* [http://www.sandhill.com/opinion/editorial.php?id=194 How to convert to SaaS] Sandill.com, June 2008.
* [http://www.prakashonsoftware.org/blog/index.php/2007/03/17/bootstrapping-and-capital-efficiency-a-contrarian-view/ Bootstrapping, over crowding and capital efficiency: a contrarian view] Prakash Muralidharan, Thoughts from the trench, 17 March 2007.
* [http://www.opportunityworld.com/index.aspx?page=oppworld.ow-jul-aug-2006.Bootstrapping_Your_Business Have you considered bootstrapping your business for success?] Javier Rojas, Opportunity World, July/August 2006.
* [http://books.google.com/books?id=s10ugFmlrhkC&pg=RA1-PA47-IA6&lpg=RA1-PA47-IA6&dq=bleyleben+bootstrapping&source=web&ots=Fn43IrP1Kd&sig=wr4UPT6zePiiQMfcD5YImTKaEFk&hl=en&sa=X&oi=book_result&resnum=9&ct=result Strategic Entrepreneurship: Why it is better to be bootstrapped than well-heeled] Jonathan Guthrie, 7 December 2005.
* [http://www.ieaf.es/_img_admin/118823838510.pdf El Ciclo del Capital riesgo en Europa: Su gestion y aportaction de valor] FUNDACIÓN DE ESTUDIOS FINANCIEROS, March 2005.

External links

* [http://www.kennet.com/ Kennet Partners] (company website)
* [http://www.tornado-insider.com/radar/compShow.asp?compID=7478 Tornado Insider Profile]
* [http://www.thefunded.com/funds/show/Kennet%20Partners The Funded.com] Kennet Partners profile
* [http://www.private-equity.org.uk/profile.php?contact=Kennet%20Partners%20Ltd PSEPS Directory]
* [http://www.datamonitor.com/companies/company/?pid=D72C7AF9-D802-4AEB-8C3D-AD386E584DCB Datamonitor Profile]