Inflexion acquires minority stake in smart-lock maker Salto Systems
European mid-market private equity firm Inflexion has acquired a minority stake in electronic access control manufacturer Salto Systems through its Partnership Capital III fund.
Inflexion joins as lead minority investor alongside a group of new and reinvesting shareholders. Salto manufactures smart wireless e-locks across three brands – Salto, Gantner and Vintia – serving 15,000 customers across 160 countries. The business employs 1,850 staff across 50 global offices.
Salto Systems co-founder Javier Roquero said: “This transaction marks an important milestone in the evolution of Salto’s ownership. We are pleased to welcome Inflexion as our lead new investor.
“Their experience of scaling international businesses, combined with their network and expertise, will help us continue our growth journey and create long-term value for customers, employees and partners.”
UK venture capital returns match US performance, British Business Bank finds
UK venture capital funds launched between 2002 and 2021 delivered a pooled total value to paid-in capital return of 1.78x, matching US market performance, according to new analysis from the British Business Bank.
The state-owned development bank found that UK returns matched the US figure of 1.78x and outperformed the rest of Europe at 1.67x. Recent UK funds launched between 2020 and 2024 delivered pooled paper returns of 1.40x, compared with 1.24x for US peers and 1.27x for European vehicles. However, cash distributions back to investors continue to trail US levels while remaining in line with Continental Europe.
British Business Bank chief investment officer Leandros Kalisperas said: “For many years, US venture capital has been seen as the world-leader. This research shows the UK is increasingly closing the gap, matching US returns overall and outperforming among the latest generation of funds.
“It underlines the quality of the UK’s venture sector, and its ability to support innovative businesses from startup through to scale-up.”
Northcote Equity closes second private equity fund at £250m
Lower mid-market private equity firm Northcote Equity has closed its second fund at £250m after a 10-week fundraising period.
The close comes less than two years after the firm was founded and brings total capital raised across its two funds to £410m. Existing limited partners re-committed more than 100% of their capital from Fund I. The vehicle will invest equity cheques of £10m to £40m in founder-led technology and services businesses across the UK and Ireland.
Northcote co-founder Charles Dale said: “We’re extremely grateful for the trust our investors continue to place in us and we’re delighted to welcome a select group of new partners for the next chapter. Fund II gives us the capacity to do more of what we set out to do from day one: back outstanding founders, build enduring relationships and support ambitious businesses as they grow.”
ABP commits €250m to new Scaleup Europe Fund
Dutch pension fund ABP has committed €250m (£208m) to the newly established Scaleup Europe Fund as part of a strategy to allocate €1bn (£833m) to European growth equity over three years.
The vehicle has a total target size of €5bn (£4.2bn) and will provide late-stage expansion capital to European technology companies, including UK scaleups. Established as a joint initiative between the European Commission and institutional investors, the fund will be advised by EQT, targeting sectors including artificial intelligence, quantum technology, energy tech, space tech and medical tech.
ABP executive board chair Harmen van Wijnen said: “Our primary responsibility is to deliver a good pension for our participants. This investment supports that objective. We see attractive return opportunities in a market where many innovative companies struggle to access sufficient growth capital. By investing selectively in these businesses, we expect to create long-term value for participants.
“Europe is home to exceptional talent, knowledge and technology. Yet too many successful growth companies still move to other markets to secure financing. Greater availability of capital can help ensure that innovation, economic value creation and jobs remain in Europe. The Scaleup Europe Fund contributes to that goal.”
