- Constellation Software (CSU) will form a C$200M venture capital fund focused on vertical market software
- The fund will only invest in businesses that have the potential to become standalone business units within Constellation
- Allocation will occur over a three-to-five-year period with the objective of developing and refining organic growth processes for Constellation’s operating groups
- Constellation Software acquires, manages and builds vertical market software businesses
- Constellation Software (CSU) is down by 1.63 per cent and is currently trading at $2,195.73 per share
Constellation Software (CSU) will form a C$200M venture capital fund focused on vertical market software.
Most of the target businesses will have been incubated or identified by a sponsoring Constellation business unit.
The fund will only invest in businesses that have the potential to become standalone business units within Constellation.
Investee managers and employees will also be significant shareholders in their businesses.
Additionally, the fund will not back start-ups that have to rely on a Constellation business unit for ongoing sales, marketing, customer support and development.
Allocation will occur over a three-to-five-year period with the objective of developing and refining organic growth processes for Constellation’s operating groups. Fund employees will be compensated based on the fund’s results.
Daan Dijkhuizen will serve as the fund’s managing partner. He will continue as CEO of the Topicus Operating Group but will be replaced by Robin van Poelje as CEO of Topicus.com.
Mark Leonard, President of Constellation, stated,
“Organic growth will be a critically important part of CSI’s enduring success. I’m delighted that Daan will continue to lead TOG and will take on the additional responsibility for the fund. TOG has one of the best track records of sustained organic growth at scale that I’ve seen in the VMS industry. I’ll personally support the fund and Daan as he focuses on leading Constellation’s larger organic growth efforts.”
Constellation Software acquires, manages and builds vertical market software businesses.
Constellation Software (CSU) is down by 1.63 per cent and is currently trading at $2,195.73 per share as of 1:29 pm EST.
