Bregal Sagemount has had a busy September.
The $500 million fund backed by Switzerland’s Brenninkmeijer family has invested in two e-commerce businesses in the last two weeks, backing NETRADA North America and Network Merchants. NETRADA is an e-commerce provider for the fashion and beauty industry. Network Merchants is an online payments provider that allows companies to process online transactions in real-time anywhere in the world.
NETRADA and Network Merchants mark the sixth and seventh investments for Bregal Sagemount and bring the fund to roughly 40 percent invested. In both deals, Bregal Sagemount invested alongside the company’s management team. The investment in Network Merchants values the company at nearly $200 million.
“We’re constantly sifting the marketplace for secular themes that we think are very attractive and where the pull through on the demand side is very, very strong,” Gene Yoon, managing partner at Bregal Sagemount told Private Equity International. “An area that we’ve identified over the last couple years has been the shift from traditional retail commerce and e-commerce…We’ve been looking mostly around ecommerce and mobile commerce enablement.”
Bregal Sagemount launched in June 2012 with five investment professionals, led by Yoon, the former head of private equity for Goldman Sachs’ Americas special situations group. The Bregal Sagemount team has since grown to 10 individuals.
Bregal Investments, the family investment vehicle of the Brenninkmeijer family, also backs New York-based Bregal Partners, a private investment firm started in 2012.Whereas most Bregal-backed vehicles tend to invest in leveraged buyout and control situations, Sagemount focuses on growth sectors like business services, software and technology-enabled businesses, information and media services and healthcare.
Bregal Investments was founded in 2002 has invested over $9 billion since its inception.
Magazine subscribers can read an in-depth feature story on Bregal Partners in the October issue of Private Equity International.