European mid-market tech investor Tenzing has scored an impressive 9.6x return selling CitNOW Group to UK private equity house Livingbridge.

Tenzing sealed a 74% IRR from the sale, which comes four years after the firm bought into the sales conversion software for car dealerships specialist using its £200m debut fund.

The firm said it had such high conviction about the additional value CitNOW can create that it has “materially reinvested” from both Tenzing Fund II and Tenzing Belay alongside Livingbridge.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

CitNOW made five acquisitions during Tenzing’s ownership, including partnering with Quik to expand its global footprint and accelerate US expansion.

It also bought into Netherlands-based Web1on1 and UK-based Reef Business Systems, Dealerweb and Tootle.

Tenzing co-founder and managing partner Christian Hamilton said, “We’re super proud to have spent the last four years working with the management team at CitNOW as the business has transformed the customer journey in automotive.

“Along the way, CitNOW broke into new markets and acquired market-leading companies that led to huge growth during our investment period.”

Simon Peet, partner at Livingbridge, added, “CitNOW Group is a fantastic business which has built a reputation for innovation and excellence in a large and rapidly evolving sector.”

Source: Alt Assets

Can’t stop reading? Read more