Five Arrows Principal Investments on its £120m investment in Causeway Technologies
Five Arrows Principal Investments (“FAPI”), the European corporate private equity arm of Rothschild & Co, has made a £120 million investment in Causeway Technologies (“Causeway”), a leading provider of software solutions to the construction industry in return for a significant minority stake in the company.
Established in 1999 and headquartered in Buckinghamshire (United Kingdom), Causeway is a leading provider of enterprise and cloud software solutions to the construction and infrastructure maintenance industries, helping over 2,500 customers to achieve their digital enablement, data, integration and productivity aspirations. Causeway’s solutions connect the construction ecosystem, providing solutions that transcend functional and organisational boundaries.
FAPI’s investment will help fund strategic acquisitions and accelerate Causeway’s organic growth strategy to digitally connect the construction supply chain through further development of its cloud platform. This investment follows a period of strong and consistent growth at Causeway, resulting in an earnings compound annual growth rate of 31% since 2015 driven by increased industry adoption of digital solutions and acquisitions that have broadened its product portfolio.
FAPI is part of the European private equity arm of Rothschild & Co’s Merchant Banking business. Merchant Banking manages over €16.2bn globally which includes approximately €4.1bn dedicated to corporate private equity, as well as a series of funds dedicated to senior and junior credits, primary and secondary fund investing and co-investments, with offices in Paris, London, New York, Los Angeles, and Luxembourg. FAPI focuses on investing in middle-market companies with highly defensible market positions; strong management teams; business models with high visibility of organic unit volume growth and strong free cash flow conversion; and multiple operational levers that can be used to unlock latent value. Sectors are limited to data and software, technology-enabled business services and healthcare.
This transaction further demonstrates Torch Partners expertise and successful track-record in advising across the Enterprise SaaS and AEC software sectors. Other recent and successful Torch Partners transactions include: advising KKR on its acquisition of ERM; Astorg and Bridgepoint on their acquisition of Fenergo; Permira on its growth investment in Nexthink; Clustree on its sale to Cornerstone on Demand; Wax Digital on its sale to Medius; and Bricsys on its sale to Hexagon.
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