Luminate Capital invests in AMTdirect, a real estate SaaS provider

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Luminate Capital Partners is backing AMTdirect LLC, a software-as-a-service (SaaS) provider of lease administration and lease accounting services for businesses and real estate professionals. The deal comes several months after the private equity firm acquired regulatory software maker StarCompliance LLC.

AMTdirect provides companies with real estate and contract management tools and services. The Charlotte, North Carolina-based target offers lease abstraction, electronic documentation tracking, accounting technology systems, and also provides training and system integration to help businesses efficiently aggregate their real estate database. AMTdirect’s list of clients include retailers, healthcare organizations, large corporations and higher education institutions to include: Lowe’s Companies Inc. (NYSE: LOW), Enterprise Rent-a-Car, Rite Aid Corp. (NYSE: RAD), Novant Health, Qualcomm Inc. (Nasdaq: QCOM), and Penn State University.

San Francisco-based Luminate Capital, led by former Silver Lake Partners managing director Hollie Moore Haynes, is focused on acquiring middle-market software companies with $10 million to $50 million in annual revenues. The firm seeks to purchase companies from the founders, early venture capital investors, or in carve-out deals. In June, Luminate raised its debut fund with $265 million in capital commitments. Luminate Capital, recognized as one of 10 Young and Thriving PE Firms worth watching, also invested in airplane software developer Comply365. The firm is interested in backing U.S. providers of business-to-business enterprise software with an established product, a happy customer base, a market leadership position, a management team to partner with, and the potential to grow 10 percent to 30 percent annually, along with certain software industry financial metrics.

Demand for real estate related assets and software has been picking up, as companies rely more on technology to manager their properties. In May, TA Associates backed real estate software provider MRI, and Genstar Capital acquired real estate software company Accruent in 2016. Meanwhile, PE firms have been closing real estate-focused funds. In 2017, Carmel Partners closed its sixth fund to focus on the sector and Jaguar Growth Partners raised its first real estate fund.

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