Causeway has secured a £120 million investment to fund strategic acquisitions and accelerate its organic growth strategy to digitally connect the construction supply chain through further development of its Cloud Platform. This investment follows a period of strong and consistent growth at Causeway, resulting in an earnings compound annual growth rate of 31% since 2015 driven by increased industry adoption of digital solutions and acquisitions that have broadened its product portfolio.
Five Arrows Principal Investments, the European corporate private equity arm of Rothschild & Co, have made this investment in return for a significant minority stake in Causeway. This investment reinforces the opportunity in this sector and the need for solutions that address both the pace of digitalisation and productivity issues caused by complex supply chains, and the transient nature of construction projects. Causeway’s solutions connect the construction ecosystem, providing solutions that transcend functional and organisational boundaries.
Phil Brown, Chief Executive and Executive Chairman of Causeway, said:
“This investment marks another leap forward for our business and for the value we can add to our customers. Our core purpose and passion is to digitally enable the global construction industry – the support of Five Arrows allows us to accelerate our work to help solve our customers’ challenges.
“Our ambition is to ensure that data flows seamlessly across the construction process, making our customers more efficient and their data more useful and actionable. That is the only way to drive better project outcomes, especially around value and quality.
“While cloud-based tools and mobile connectivity have helped put solutions into people’s hands, much is still very fragmented in this industry. We are building a persona-based platform with relevant applications and data delivered to each member of the construction supply chain via their desktop or mobile devices. The platform will be open, making it easy to integrate with both third-party applications and any bespoke, customised applications that customers might have had developed.
This approach will help break down silos and give businesses be they large and small, in all parts of the construction ecosystem, complete visibility and control over their projects and supply chains.”
Following completion of the transaction, Vivek Kumar (Partner) and Sacha Oshry (Managing Director) of Five Arrows Principal Investments will join the board of Causeway.
Goldman Sachs served as financial adviser to Causeway Technologies and Torch Partners acted as financial adviser to Five Arrows.
About Five Arrows Principal Investments
Five Arrows Principal Investments (Five Arrows) is part of the European private equity arm of Rothschild & Co’s Merchant Banking business. Merchant Banking manages over €16.2bn globally which includes approximately €4.1 billion dedicated to corporate private equity, as well as a series of funds dedicated to senior and junior credits, primary and secondary fund investing and co-investments, with offices in Paris, London, New York, Los Angeles and Luxembourg.
Five Arrows focuses on investing in middle-market companies with highly defensible market positions; strong management teams; business models with high visibility of organic unit volume growth and strong free cash flow conversion; and multiple operational levers that can be used to unlock latent value. Sectors are limited to data and software, technology-enabled business services and healthcare.
For more information:
www.rothschildandco.com/en/merchant-banking/corporate-private-equity
For further media information and interviews with Causeway’s CEO:
Liz Male, LMC – Tel. 07778 778 361 / liz@lizmale.co.uk
