Tern Capital

What is Tern Capital?

Tern Capital is a private equity fund headquartered at 207 Regent Street, London, W1B 3HH, United Kingdom. They focus exclusively on investing in software businesses and distinguish themselves by a hands-on investment approach. With over 120 years of combined executive experience in running technology businesses, the Tern Capital team brings substantial operational expertise to their investments.

They are comprised of ex-entrepreneurs who understand the intricacies of scaling and running software companies, as opposed to a team of only financiers or bankers. Tern Capital has a specific investment thesis that emphasizes rapid decision-making and deal completion, often closing deals in an average of 3.6 weeks from the letter of intent (LOI) to deal closure. They have a unique approach to investment, marked by deep involvement in the business operations and a focus on long-term growth and value creation.

Their portfolio companies span 73 countries, indicating a global reach and influence. The fund particularly looks for opportunities in the form of buy & build strategies, carve-outs, and scale-up of software companies, with certain financial criteria for annual recurring revenue (ARR) and EBITDA.

They target verticals including the public sector, retail, media, and communication. Noteworthy is their alignment of interests with their investments, as they invest their own money into the deals they execute.

This personal stake underlines their commitment to the success of their portfolio companies and aligns their goals closely with those of the companies they invest in.