P+P advises BID Equity on launch of private equity fund at EUR 125m hard cap

Hamburg-based private equity firm BID Equity has successfully launched BID Equity Fund II which it will advise, focusing on investments in software companies in the DACH region (Germany, Austria, Switzerland). Due to the great interest shown by international institutional investors, the fund was significantly oversubscribed and the fundraising was successfully completed within a few months at the maximum amount (hard cap).

After various individual investments in the past, BID Equity has now launched a first blind pool as the advisor to BID Equity Fund II. The aim is to invest in successful B2B software portfolio companies in the DACH region. The fund pursues a buy-and-build strategy focusing on established companies with EBITDA between EUR 0.5m and 5m.

BID Equity Fund II has been set up as a complex Luxembourg master-feeder fund structure with LIS (Luxembourg Investment Solutions) as external alternative investment fund manager and BID Equity as adviser.

Due to the great interest of international investors, the fund was significantly oversubscribed and was able to complete its fundraising within a few months. In addition to the investor subscriptions of EUR 125m, BID Equity invests a significant team commitment into the fund. During the fundraising, BID Equity was supported by AXON Partners AG acting as placement agent.

P+P Pöllath + Partners comprehensively advised BID Equity on all contractual, tax and regulatory aspects of the fund structuring, marketing and investor negotiations with the following Berlin-based private funds team:

• Dr. Philip Schwarz van Berk (partner, private funds)
• Dr. Christian Hillebrand (senior associate, lead, private funds)
• Dr. Philip Mostertz (senior associate, private funds)

Arendt & Medernach advised BID Equity on Luxembourg legal aspects.