Copilot Capital, a new private equity firm based in London, has launched a $200m (£157.5m) buyout fund targeting European software scaleups.
The private equity firm plans to invest in lower mid-market software firms in Europe with annual recurring revenue of up to £13m.
The firm said the current fundraising environment has left a gap for the lower mid-market, despite the numerous companies with solid sustainable growth models.
“There are 60,000 SaaS companies across Europe. Many of these maturing businesses don’t fit the profile of a typical VC or buyout fund and fall through the cracks, despite their obvious potential,” said Copilot Capital co-founder John Messer.
“Our goal is to identify businesses with market-leading products and proven revenue models and equip them with the capital and expertise to scale into software champions.”
Copilot Capital was co-founded by Messer and an investment arm of the US consortium the Friedkin Group, which provided the seed capital. The Friedkin Group consortium includes Serie A football club AS Roma.
“John’s focus on identifying overlooked potential aligns perfectly with The Friedkin Group’s approach. Our success has stemmed from making unique contributions to a founders’ growth journey and finding value where others haven’t,” said Friedkin Group International principal Danny Friedkin.
“We’ve backed many exceptional founders and management teams across a diverse range of industries. John and the Copilot Capital crew are the next chapter in that adventure.”
Alongside the launch of the fund, the firm has announced its first investment into Relesys, a Danish management app for frontline and retail workers.