Houlihan Lokey Advises Maguar Capital

Houlihan Lokey is pleased to announce that Maguar Capital’s Fund 1 has entered into an agreement to sell its portfolio company HRworks Holding GmbH to a newly established continuation vehicle, Maguar Continuation Fund I.

Maguar Capital, a leading B2B software investor in the DACH region, has entered into an agreement to sell its portfolio company HRworks Holding GmbH, a rapidly growing human capital management (HCM) software provider, to a newly established continuation vehicle managed by Maguar. The successor fund, Maguar Fund 2, as well as the management team of the company intend to invest alongside the vehicle.

Founded in 1998, HRworks is an integrated Software-as-a-Service (SaaS) HCM software provider primarily for small- and medium-sized businesses in Germany. The company focuses on business-critical HR functions such as time management, travel expenses, personnel management, recruiting, and corporate benefits. For almost 25 years, HRworks has delivered uninterrupted profitable growth and currently serves about 2,500 customers. The company runs a highly scalable technology platform and currently employs over 120 employees located in its four offices across Germany.

Since Maguar’s initial investment in the company in 2020, HRworks has experienced significant growth and is now recognised as one of the leading HCM software solutions for SMEs in the DACH region. With the sale to the Maguar continuation fund, which has been established to invest exclusively in HRworks, Maguar intends to continue the successful growth strategy by providing additional capital for add-on transactions and a wider range of organic growth initiatives.

Houlihan Lokey acted as exclusive financial advisor to Maguar Capital and provided debt advice on all commercial aspects of the financing transaction. Following a comprehensive lender selection process, this advice secured a highly attractive and flexible financing package to support the company’s future growth strategy.