MetaCompliance Generates 5.5x Return for Tenzing in Strategic Exit
Deal News | Dec 09, 2024 | Tenzing Private Equity
Tenzing Private Equity has exited its investment in MetaCompliance, generating an impressive 5.5x return on invested capital with a 53% internal rate of return (IRR). This marks the first exit from Tenzing's second fund, following the successful raise of its third fund earlier this year. Tenzing initially invested in MetaCompliance in 2021, attracted by its unique approach to the human aspects of cybersecurity within the rapidly growing Human Risk Management (HRM) sector. Over four years, Tenzing's Growth Team played a crucial role in MetaCompliance's expansion into a leading European HRM software platform, achieving consistent revenue growth exceeding 30% CAGR. The firm's support for international expansion included acquisitions in Denmark and Germany. MetaCompliance, now poised for further growth with its new partner Keensight Capital, reflects Tenzing's successful investment strategy. The recent transaction is subject to regulatory approvals and is expected to complete in the new year.
Sectors
- Private Equity
- Technology
- Mergers and Acquisitions
- Cybersecurity
Geography
- Europe – The article primarily focuses on a European context, with Tenzing and MetaCompliance operations and strategic expansions occurring within Europe.
- United Kingdom – Tenzing Private Equity is based in the UK, which is central to the transaction and operations discussed in the article.
- Germany – MetaCompliance expanded its operations in Europe by acquiring a hub in Germany.
- Denmark – MetaCompliance expanded its operations in Europe by acquiring a hub in Denmark.
- Portugal – MetaCompliance set up a new offshore development center in Portugal, aided by Tenzing's support.
Industry
- Private Equity – The article showcases a successful exit by Tenzing Private Equity, highlighting the significance of this industry in nurturing and exiting investments in tech companies.
- Technology – MetaCompliance operates within the technology sector, specifically focusing on Human Risk Management (HRM) software, a subset of cybersecurity technology.
- Mergers and Acquisitions – The article discusses MetaCompliance's growth through M&A activities, including acquisitions in Denmark and Germany, facilitated by Tenzing.
- Cybersecurity – MetaCompliance specializes in cybersecurity awareness training, a critical area within the broader cybersecurity industry.
Financials
- 5.5x – The return on invested capital generated by Tenzing from the exit of MetaCompliance.
- 53% – The internal rate of return (IRR) achieved by Tenzing from the MetaCompliance exit.
- £400m – Size of Tenzing’s second fund, from which MetaCompliance is the first exit.
- €900m – Total commitments to Tenzing’s third fund raised earlier this year.
- >30% – Compound annual growth rate (CAGR) of MetaCompliance's revenue over four years.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tenzing Private Equity | Seller | Company | A European mid-market tech investor that focuses on leveraging growth and supporting management teams in the technology sector. |
| MetaCompliance | Target Company | Company | A leading Human Risk Management platform based in Europe, focusing on cybersecurity awareness training. |
| Keensight Capital | Buyer | Company | An equity partner with expertise in supporting growth and expansion in the tech sector, acquiring MetaCompliance. |
| Milan Kellner | Investment Lead | Person | Investment Lead at Tenzing who commented on the success and growth of MetaCompliance. |
| James Mackay | CEO | Person | CEO of MetaCompliance, acknowledging Tenzing’s partnership in their growth journey. |
| Jean-Christophe Cini | Director | Person | A director at Keensight Capital, expressing enthusiasm about partnering with MetaCompliance. |
| Baird | Financial Advisor | Company | Advised Tenzing on the transaction |
| Simmons & Simmons | Legal Advisor | Company | Provided legal advisory services to Tenzing. |
| PwC | Financial Advisor | Company | Provided financial advisory services for the transaction. |
| Alpha Advisory | Advisor | Company | Provided advisory support to Tenzing during the transaction. |
| Altman Solon | Advisor | Company | Advised Tenzing on the transaction. |