Kennet’s U.S.-European Focus Culls Together Fund III

Kennet Partners—the growth stage firm that invests in U.S. and European tech companies from a single fund—today is announcing the close of Kennet III at $315 million (or about EUR 200 million). The firm raised about $215 million for its previous fund in 2000.

I spoke with Managing Director Javier Rojas last week before he jetted off on a trip to Europe. Rojas leads Kennet’s U.S. activities from the firm’s Foster City, Calif.-based office. Kennet also has an office in London.

One of the takeaways from my talk with Rojas was the cross-border angle. He and his fellow partners are excited about the strong euro and the opportunity for U.S. companies to gain access to the European Union. In fact, there are a few examples where Kennet portfolio companies have expanded across the Atlantic Ocean, including Daptiv, Medefinance and NetPro.

But interest in territories flows in the other direction, too.
Spain’s NTRglobal in June raised a $34 million growth stage funding round from Kennet and other investors. The company, which develops Internet-related communications technology, is currently eyeing expansion in the U.S. market. Similarly, Kapow, which develops Internet search software and technology, earlier this year raised $12 million from Kennet and others. The company—with offices throughout Europe and the United States, has planted its headquarters in Palo Alto, Calif., but a decade ago, it was just a European startup.

The U.S. and European focus of the new Kennet growth fund obviously resonated with LPs, which included Access Capital Partners, Adveq, Alpha Associates, BNP Paribas Private Equity, Capital Dynamics, Credit Agricole Asset Management Capital Investors, Credit Suisse, European Investment Fund, Finama, LGT Capital Partners and Siemens.

By the way, the Kennet fund was oversubscribed.

If your firm similarly does investments in Europe and the United States, send me a note. I’d like to hear about it.