CataCap, a Danish private equity firm, has made its first investment from its maiden fund.
The firm has acquired a 60 percent stake in Telecare Service, a Danish mobile repair service provider for an undisclosed amount, according to a statement.
The founder of the business, Jens Due, retains a 25 percent stake following the acquisition, while Jacob Thygesen, a private investor and investment board member at CataCap, owns 10 percent. Other management and board members make up the remaining 5 percent.
Due will remain chief executive of Telecare Service, which has become a market leader in Denmark within the last few years, according to the statement. In 2012, the company tapped into Sweden. Between 2010 and 2012, Telecare increased its sales from DKK 38m (€5 million, $6.8 million) to DKK 134m (€18 million, $24 million). The company has a workforce of 200 people.
We are impressed with Telecare's innovative business model, their ability to win new contracts and deliver a quality service even a high growth rates.
“We are impressed with Telecare’s innovative business model, their ability to win new contracts and deliver a quality service even at high growth rates. We are convinced that Telecare has further growth potential and is well positioned to become the Nordic market leader. Our aim is to support Telecare in releasing this potential,” co-founder of CataCap Management, Vilhelm Hahn-Petersen, said in the statement.
Prior to establishing CataCap, Hahn-Petersen spent a few years at Axcel, a Danish private equity firm, and used to be an operations director at budget airline Easyjet. His brother Jens Hahn-Petersen, also a founding partner and an investment banker, has advised both Danish and international private equity funds. Peter Ryttergaard, the third founding partner, has a background in private equity. As chief financial officer at FLS Aerospace/SR Technics, a Danish technical service provider for airlines, he completed the management buyout of the company with 3i Group and Star Capital Partners.
In January, CataCap held a €67 million first close for its debut fund, which has a €100 million to €130 million target. The fund invests in Danish small and medium sized businesses and is expected to hold a second close at the end of the year.