FPE Capital

FPE Capital (“FPE”) is pleased to announce its successful sale of Kallidus Holdings Limited (“Kallidus”), a leading human capital management and e-learning software as a service (SaaS) provider. The buyout of Kallidus will generate a 3.0x MoC and 31% IRR return for FPE funds, which in combination with funding for a subsequent bolt on achieves a blended return of 2.7x MoC and 34% IRR over the four-year investment period.

Headquartered in Cirencester, UK, Kallidus has grown rapidly in the period under FPE’s ownership, which included the bolt on acquisition of Advorto, a SaaS recruitment provider, in September 2017. Kallidus is being acquired by Apse Capital, which has strong knowledge of the sector, its Partners having previously invested in Seagull, a maritime e-learning and technology platform.

FPE Capital, which completed the raise of a new £101m fund in October 2017, partners with high growth UK-headquartered technology-enabled SMEs, including those in the software and human capital management space. It invested in Kallidus in April 2015 to fund further organic growth of the core business and subsequently backed the acquisition of Advorto to take the business into the recruitment sector. During FPE’s ownership, Kallidus invested heavily in its SaaS platform and successfully migrated the entire business and customer base to a full multi-tenant solution. FPE’s investment has also enabled Kallidus to deliver significant operational and sales process efficiencies to maximise top line revenue growth.

Henry Sallitt and Henry Ropner led the investment for FPE and were non-executive directors of Kallidus through-out the period.

Henry Sallitt, Managing Partner at FPE commented:

“It has been fantastic to see Kallidus grow and to be part of its development as it benefits from its major investment into the core software platform and expanded product offering. We would like to congratulate the team on their significant achievements in the past few years during our partnership with them, and to wish them continued growth and success.”

Rob Caul, CEO at Kallidus said:

“We are delighted with the support FPE has given us, helping us grow organically and through acquisition. Kallidus is at an exciting stage of its growth story and we believe we will benefit from Apse Capital’s expertise and support in our next stage of growth.”

Tim Green, Managing Partner of Apse Capital said:

“The successful completion of our investment in Kallidus marks an exciting phase in its development as we support the Company during the next stage of its growth. We look forward to working with Rob and the rest of the management team to continue to deliver world class human capital management and e-learning solutions.”

Houlihan Lokey served as financial advisor, Charles Russell Speechlys LLP as legal advisor, RSM as financial due diligence advisor and CIL as commercial advisor to Kallidus. Capital Law and Momentum Corporate Finance advised the management team.

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