Carlyle, Kennet add on to Belgian software company

FRS Global, acquired by the private equity firms two years ago, has agreed to purchase Switzerland-based Iris integrated risk management to provide integrated risk and regulatory reporting products. Carlyle made its investment from its €222m European technology fund.

FRS Global, a Brussels, Belgium-headquartered portfolio company of The Carlyle Group and Kennet Partners, will pay an undisclosed amount for Swiss financial analysis company Iris integrated risk management.

Carlyle and Kennet acquired risk and regulatory compliance software vendor FRS in August 2006 for an undisclosed amount from software company S1 Corporation. FRS currently operates out of 20 offices and provides coverage for more than 30 countries.

The acquisition will allow FRS to introduce the first combined risk and regulatory reporting solution for the financial services sector, according to a statement from the company. As a result, the company will become the largest software and services supplier operating in the space, FRS said.

The investment in FRS was Washington, DC-based Carlyle’s fifth from its dedicated European technology fund which closed in May 2006 on €222 million. The fund focuses on small buyouts and growth capital investments in technology companies across Europe with an enterprise value of between €25 million ($36.6 million) and €200 million.

The two most recent investments from the fund closed in February 2008. Carlyle and Spanish private equity firm Mercapital acquired Spanish website hosting company Arsys Internet for €160 million. Carlyle also acquired Holding, a Swiss vendor of Microsoft-based services, alongside management in an all-cash transaction.

Kennet is a Europe- and US-focused growth capital investor. The firm manages more than $600 million in funds and operates from offices in London and San Francisco.

Kennet closed its third fund last month on €200 million at which time the fund was approximately 10 percent invested, Kennet’s US head Javier Rojas told PEO. The firm specialises in leading what it dubs “bootstrap” businesses, or founder-managed companies that have not received outside capital support, such as venture finance.