Highland Europe Fund VI closes at €1.1B for scaleup bets

Highland Europe Fund VI has closed at €1.1 billion, giving the growth-stage investor fresh capital for European technology scaleups. The London- and Geneva-based firm said the fund will continue its strategy of backing later-stage companies across the region, a segment where disclosed private financing has become more selective.

The firm did not disclose the fund’s limited partners, target size, management fee, carry terms or deployment timetable. Highland Europe said its limited partners’ backing allows it to keep investing at a time when AI is affecting many industries, a broad claim that reflects how much growth capital is being marketed around AI exposure.

What is Highland Europe Fund VI?

Highland Europe Fund VI is the firm’s sixth growth fund and is intended for investments in European technology companies that have moved beyond the earliest startup stage. Growth-stage venture capital typically backs companies with proven commercial traction that still need private capital to expand, acquire customers or enter new markets.

Since Highland Europe was formed in 2012, the firm says it has raised €3.75 billion across six funds. It has backed more than 80 companies and recorded 30 exits, according to the firm.

Highland’s portfolio includes 9fin, AMCS, Bending Spoons, Camunda, EGYM, Featurespace, GetYourGuide, Huel, hyperexponential, ME+EM, Nabla, n8n, Nothing, Wolt and Zwift. The list puts the firm across software, consumer, health, mobility and vertical technology companies rather than a single sector strategy.

Liquidity and recent deals

The new fund follows what Highland described as a year with more than €1 billion in liquidity. The firm cited several recent portfolio events: the $3 billion sale of Nexthink, Danone’s agreed acquisition of Huel, the $7.5 billion merger of EGYM and Playlist, and Bending Spoons’ public listing on Nasdaq.

Those outcomes are useful context for the close. European growth funds have had to show distributions to investors after a period in which IPO markets and large exits were less dependable. Highland did not break down how much of the reported liquidity came from each transaction or how much was returned to investors.

The firm also pointed to three recent investments. Highland led a $70 million Series B for legal AI company Wordsmith, a $50 million Series B for enterprise AI delivery platform Unframe and a $105 million Series D for precision agriculture company Ecorobotix.

Who is joining Highland Europe’s partnership?

Highland Europe also promoted Helena Richardson and Jacob Bernstein to partner. Richardson joined the firm in 2016, and Bernstein joined in 2017.

The firm said both have worked on several portfolio companies and investments over the past decade. It did not specify changes to fund decision rights or economics tied to the promotions.

Highland Europe has offices in London and Geneva. The firm said it has a team of 36 people, including 20 investment professionals, as it begins investing from Fund VI.

This story draws on original reporting from Tech.eu.