Highland Europe raises €463m to invest in European tech companies

Highland Europe, an investor in companies including MatchesFashion.com, has raised €463m (£408m) to back software and tech-enabled businesses across Europe. 

The fund, the firm’s third in six years, was raised in approximately three months and takes its assets under management to €1.1bn.

Highland Europe boasts 29 active businesses in its portfolio with combined revenues of €1.1bn last year. They are primarily based in Germany, the UK, and France.

The fund has also backed companies based in Finland, Ireland, Italy, the Netherlands, Spain, Switzerland and the US.

Portfolio companies include Adjust, Bitmovin, ContentSquare, Featurespace, GetYourGuide, Malwarebytes, NewVoiceMedia, Nexthink, Smartly.io and WeTransfer.

“We’re excited to have extra firepower to continue investing in the most exciting tech businesses in Europe,” said Fergal Mulle, partner and co-founder of Highland Europe Partner.

“At the same time, we’re consciously staying nimble and remain focused on helping the entrepreneurs we back scale-up internationally and achieve their ambitions. It takes more than capital and determination to build billion dollar businesses – and that’s what Highland Europe is all about.”

The firm will continue to focus on rapidly growing businesses with a validated business model.

“Helping founders and management teams achieve their full potential is the single most important thing that we do,” Mullen said.

“When evaluating teams, our scorecard prioritises excellent interpersonal relationships because we know from decades of experience that a positive frame of mind and constructive approach always deliver a better outcome.  We are proud of our cheerleading role with founders and their teams, while never losing sight of our obligation to provide careful stewardship of capital.

“We are growth-obsessed because it is the most significant driver of value in a company.  Scaling the team and the organisation presents serious challenges and therefore we prioritise recruitment of management and Board talent above all other value creation initiatives and work closely with founders to fashion changes that benefit everyone,” concluded the partner.