HRworks

Maguar Capital Partners (“Maguar”) is a lower mid-market buyout manager founded by Matthias Ick, Gunther Theis and Arno Poschik. Maguar is based in Munich and specializes in investments in B2B software companies. Maguar first invested in HRworks in 2020 via their first fund, Maguar Fund I. Under Maguar’s ownership the company has demonstrated impressive growth, increasing revenue by an average of 27% per annum.  In late 2022, Maguar launched a continuation fund process to support the company through its next phase of growth.

Patria GPMS was one of Maguar’s earliest backers in 2020, having made a cornerstone commitment to Maguar Fund I as well as investing in the original buyout of HRworks from its founder. Patria GPMS also made a cornerstone commitment to Maguar Fund II in 2022. The investment in the HRworks continuation vehicle is Patria Private Equity Trust’s first investment alongside Maguar, sourced through Patria GPMS’ existing relationship with Maguar.

Founded in 1998, HRworks is a leading Software-as-a-service (“SaaS”) HR software provider serving small and medium-sized companies (“SMEs”) in the DACH region. The company’s products cover a broad range of business-critical HR functions, including time management, travel expenses, employee administration, talent management and recruiting software. The company operates a highly scalable technology platform serving over 200,000 users and 1,700 customers.

The company has provided consistent month-on-month growth with strong customer retention. The fundamentals of the business are best-in-class, with strong quality of earnings, high cash generation and excellent margins.

HRworks is a star asset with a compelling financial profile which has demonstrated exceptional growth over a sustained period and continues to deliver impressive results. Participation in the continuation vehicle provides PPET with exposure to a high-quality manager in Maguar and a business with significant further growth potential at an interesting time in the company’s evolution.