Kennet makes third exit of 2006(3)

Kennet Partners, a private equity firm, has sold a risk management business to IBM in its third exit in 2006.

Kennet Partners, a technology-focused private equity firm, has sold Consul Risk Management International, a Netherlands-based software company, to IBM for an undisclosed amount. 

David Carratt, managing director of Kennet, said the price was “double digit millions”. The sale is expected to close in the first quarter of 2007.

Kennet bought Consul, which is based in the Netherlands, in 1998, for an undisclosed amount.  Carratt said the return Kennet made on its investment was “positive but not spectacular”.

Consul’s in-house advisor, Consul Updater, advised Kennet.  IBM was unadvised.
Consul provides compliance and security audit software that helps investigate non-compliant behaviour, such as unauthorised activity by information technology administrators.

Carratt said Kennet plans to complete three exits in 2007.

Last month Kennet sold Aspective, an application service provider, to Vodafone, a UK mobile phone company, for an undisclosed amount.

Kennet Partners has about $300 million (€227 million) under management.  The firm invests between $4 million and $20 million in companies in the technology sector.