Maguar Capital extends its partnership with its portfolio company and leading HCM software provider HRworks via a newly created continuation fund – first successful exit for Maguar Fund 1
As part of the agreed transaction, additional capital will be provided to unlock further growth potential through market penetration and M&A in the DACH region
MUNICH, 8 May, 2023 – Maguar Capital (“Maguar”), a leading B2B software investor in the DACH region, is pleased to announce that Maguar Capital GmbH & Co. KG („Maguar Fund 1“) has entered into an agreement to sell its portfolio company HRworks Holding GmbH („the Company“) to a newly established continuation vehicle, Maguar Continuation Fund I GmbH & Co. KG (“Maguar CF I”), managed by Maguar. The successor fund Maguar Capital II GmbH & Co. KG (“Maguar Fund 2”) as well as the management team of the Company intend to invest alongside Maguar CF I in the Company, with a total equity funding of more than €235 million planned for the transaction. Maguar CF I has been established to invest exclusively in the Company including its subsidiary HRworks GmbH („HRworks“), a rapidly growing human capital management (“HCM”) software provider focusing on SME customers, and to provide additional capital to continue supporting the highly successful growth strategy implemented since Maguar’s initial investment in the Company in 2020.
Renowned global investors support Maguar’s continuation fund
Maguar CF I has secured funding from a premier group of globally active institutional investors. The fund attracted high interest and demand, significantly above its capacity – a result of the outstanding performance of HRworks over the last years as well as its attractive future growth potential.
The transaction is subject to cartel approval and other customary conditions; when completed, it will mark the first successful exit of Maguar Fund 1, returning a significant portion of the fund’s drawn capital to its investors.
HRworks with remarkable organic growth trajectory
HRworks was Maguar’s first investment, back in 2020. Under Maguar’s ownership and the partly new management team, HRworks has experienced significant growth and is now recognized as one of the top three HCM software solutions for SMEs in the DACH region. Arno Poschik, Matthias Ick and Gunther Thies from Maguar commented: “We are delighted to continue our partnership with HRworks on its journey to become the leading HCM software provider for SMEs in the DACH region. This transaction would mark a milestone for Maguar in becoming the preferred partner for software companies in the DACH region. It is a great example of our commitment to generating exceptional returns for our investors while supporting the long-term success of the companies we partner with.” During Maguar’s ownership, HRworks‘ revenue and number of employees more than doubled.
Markus Schunk, CEO of HRworks, added: “We feel very happy with the exceptional success we have achieved to date in building HRworks towards the leading HCM software provider for SMEs in the DACH region. No doubt, the most important elements of that success are our outstanding team as well as our great corporate culture at HRworks which we are truly proud of. The strong commitment of Maguar and its investors provides the ideal platform to continue our exciting journey”.
Maguar intends to continue this successful investment strategy by providing additional capital for add-on transactions and a wider range of organic growth initiatives.
Asante Capital Group LLP (“Asante”) acted as exclusive placement firm to Maguar on the transaction. Macquarie and Berenberg are providing the acquisition financing. Clifford Chance, Dechert, Deloitte, Houlihan Lokey, KPMG, Lupp + Partner, Milbank, wdp are advising Maguar on this transaction.
HRworks, founded in 1998 by Thomas Holzer, is an integrated Software-as-a-Service (SaaS) HCM software provider primarily for small- and medium-sized businesses in Germany. The Company focuses on business-critical HR functions such as time management, travel expenses, personnel management, recruiting and corporate benefits. For over 20 years, HRworks has delivered uninterrupted profitable growth and currently serves over 2,500 customers. The Company runs a highly scalable technology platform and currently employs over 120 employees located in its four offices across Germany.
About Maguar Capital
Maguar Capital, based in Munich, Germany, was founded in 2019 by Arno Poschik, Gunther Thies and Matthias Ick. Maguar focuses on small and mid-cap B2B software investments in the DACH region. The Maguar team has a strong entrepreneurial background and long-term management experience in the tech industry, with more than 35 years of CEO software experience and more than 20 years of private equity experience.