DIF Infrastructure V acquires 100% of American Roads

DIF

Toronto, 17 July 2018 – DIF Infrastructure V is pleased to announce the acquisition from Syncora Holdings Ltd. of a 100% stake in American Roads LLC.

American Roads is an infrastructure holding company that owns and operates, through its subsidiaries, four toll bridges in Alabama and a concession-lease of the U.S. side of an international tunnel crossing connecting Detroit, Michigan and Windsor, Ontario.

DIF was advised by Allen & Overy (Legal), Agentis Capital (Financial), Buro Happold (Traffic), BTY (Technical) and Marsh (Insurance). Financing for the investment was provided by ING and National Australia Bank (NAB).

Paul Huebener, Partner and Head of Americas, said: ”DIF is pleased to invest in this high-quality portfolio of tolled crossings led by a strong management team.”

About DIF
DIF is an independent infrastructure fund manager, with €5.6 billion of assets under management across seven closed-end infrastructure funds and several co-investment vehicles. DIF invests in greenfield and brownfield assets located primarily in Europe, North America and Australasia through two complementary strategies:

  • DIF Infrastructure V targets equity investments in public-private partnerships (PPP/PFI/P3), concessions, regulated assets and renewable energy projects with long-term contracted or regulated income streams that generate stable and predictable cash flows.
  • DIF Core Infrastructure Fund I targets equity investments in small to mid-sized infrastructure assets in the energy, transportation and telecom sectors with stable and predictable cash flows.

DIF has over 100 professionals in eight offices, located in Amsterdam, Frankfurt, London, Luxembourg, Madrid, Paris, Sydney and Toronto. Please see www.dif.eu for further information.

For more information by press and investors, please contact:

Allard Ruijs
Partner, Head of Investor Relations and Business Development
Email: a.ruijs@dif.eu

Paul Huebener
Partner, Head of Americas
Email: p.huebener@difamericas.com

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Exclusive negotiations underway to sell Peopledoc to Ultimate software

Eurazeo

Eurazeo Croissance, the Eurazeo investment division that specializes in assisting fast-growing companies, today announced the start of exclusive negotiations to sell its interest in PeopleDoc alongside Accel Partners, Alven Capital and Kernel Investissements and PeopleDoc’s founders, to NASDAQ-listed and US-based Ultimate Software, a leading provider of human capital management (HCM) solutions.

Ultimate Software plans to acquire PeopleDoc for approximately $300 million, to be paid with a combination of cash and shares of Ultimate Software common stock, with approximately $75 million of cash to be paid at the closing and approximately $50 million of cash to be paid 12 months after the closing date. Ultimate Software expects that the PeopleDoc acquisition will have no material impact on Ultimate’s total revenues in fiscal year 2018.

Founded in 2007, PeopleDoc is a pioneer in HR software as a service (SaaS) with more than 1,000 customers in 180 countries. More than 4 million employees worldwide access their information and connect with their HR department using PeopleDoc. Clients enjoy major benefits in terms of productivity and security and reducing their environmental footprint. PeopleDoc has recently been mentioned by Forbes for advances in employee process automation and Inc. Magazine for helping define the category of HR Service Delivery. In 2014, PeopleDoc was named to the “Cool Vendors in Human Capital Management” list by Gartner. More information is available at www.people-doc.com.

Thanks to its positioning and the expertise of its Founders, PeopleDoc has enjoyed rapid growth since its creation. The company has undergone a significant ramp-up since Eurazeo’s investment in 2015, due in particular to the speed of its organic business growth in France but above all to its geographical expansion in the US, the UK, Germany and Canada.

Yann du Rusquec, Managing Director, Head of Eurazeo Croissance, stated: “We wish to thank Jonathan and Clément for the confidence they have shown over the past years. We take pride in our support of PeopleDoc and wish them the greatest success with the next stage of their development.”

Jonathan Benhamou, CEO and co-founder of PeopleDoc, added: “Today, I can measure how far PeopleDoc has come since its creation. Our company is entering a new phase in its development, the goal being to create a global HR leader. I would like to extend my warmest thanks to Eurazeo, Yann and his teams for their support over the last three years and their contribution to this great adventure.”

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EURAZEO CONTACTS PRESS CONTACT CAROLINE COHEN HEAD OF INVESTOR RELATIONS E-mail: ccohen@eurazeo.com Tel: +33 (0)1 44 15 16 76 STEPHANIE MARIA-BAJARD DIRECTOR OF COMMUNICATIONS E-mail: smaria-bajard@eurazeo.com Tel: +33 1 44 15 80 44 HAVAS PARIS Mael Evin E-mail: mael.evin@havas.com Tel: +33 (0)6 44 12 14 91 For more information, please visit the Group’s website: www.eurazeo.com Follow us on Twitter, Linkedin, and YouTube

 

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Gilde Buy Out Partners and Management acquire Caseking Group

Gilde Buy Out

Berlin – Funds advised by Gilde Buy Out Partners (“Gilde”) today announced the acquisition of Caseking Group (“Caseking” or the “Company”), together with the Founders and management. The terms of the agreement have not been disclosed.

Caseking, a leading supplier of high-performance PC-gaming equipment and peripherals, maintains a track record of strong organic growth, excellent market understanding and successful product placement supporting the future growth of the Company. Caseking has displayed consistent growth, both organically as well as through add-on acquisitions, becoming a leading platform for PC-gaming equipment in Europe. Operations are based in Germany, Great Britain, Sweden, Finland, Hungary, Portugal and Taiwan. The Company processes 540.000 orders and sells approximately 4 million products worldwide per year. Products sold include own brands, brands exclusively available at Caseking and third-party brands.

Commenting on the sale, Toni Sonn, CEO of Caseking says: “I am thankful to all employees at Caseking for their contribution and support in putting the Company on a path of sustained growth. We have experienced exciting years with strong organic growth and the expansion of Caseking to other regions outside Germany. The sale of Caseking to Gilde will allow us to further strengthen the strong position of Caseking in the PC-gaming industry and we are looking forward to work with Gilde as an experienced partner for companies with a strong growth and expansion focus.”

Matthias Wilcken, Partner at Gilde: “We are impressed with Caseking’s track record of consistent growth and the ability to understand the needs of performance PC-gamers. The Company has built a leading position in Europe focusing on the most demanding clients in the categories of PC equipment and peripherals. Caseking is in an excellent position to further build on this solid foundation and to become the most respected brand within the PC-gaming community. We are excited to support Caseking in this next phase of development.” Read more at: http://gilde.com/news/2018/gilde-buy-out-partners-and-management-acquire-caseking-group

 

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PAT MCGRATH LABS selects Eurazeo Brands as investment partner

Eurazeo

New York, July 16, 2018 – Eurazeo Brands has made an investment in Pat McGrath Labs, the iconic makeup brand created by Pat McGrath, the number one makeup artist in the world. Eurazeo, a leading global investment company with ~€16 billion of assets under management, joins ONE Luxury Group, a dedicated luxury investment fund, as minority shareholders in the company. Eurazeo’s total investment is $60 million, bringing total external funding to date to $88 million. The new capital will help Pat McGrath Labs build on its incredible success and enable the company to further expand its distribution in the U.S., as well as meet increasing demand worldwide. Additional terms of the deal were not disclosed.

Founded by McGrath in 2016, Pat McGrath Labs quickly revolutionized modern beauty through its must-have, straight-from-the-runway makeup experience. In its early days, products such as Pat McGrath Labs’ brilliant Gold 001, which sold out in less than six minutes, captured the imagination and attention of the industry, making it one of the most talked-about beauty launches. In the fall of 2017, Pat McGrath Labs debuted its core collection of makeup on patmcgrath.com and at select Sephora locations in North America. The highly anticipated launch generated incredible media attention and captivated consumers with some of the most unique and coveted makeup ever made available to the public. This fall will see the introduction of new product categories to complement the brand’s best-selling lipsticks, eyeliners and eyeshadows.

Pat McGrath Labs has reached top selling SKU status at Sephora with various hit products and was also voted the number one most engaged beauty brand in a Facebook survey of 500 top beauty brands. Pat McGrath Labs has already garnered over 30 billion media impressions since launch.

On creating Pat McGrath Labs and partnering with Eurazeo Brands, McGrath said: “It has always been my dream to create an iconic beauty brand that goes beyond the usual limitations, that lives outside the parameters of what is expected. I am thrilled to be working with the unique and expert team at Eurazeo Brands.”

“We are honored to be working with Pat, whose vision, talent and trailblazing history in the beauty industry have set Pat McGrath Labs up to be one of the most authentic and innovative makeup brands to ever come to market,” said Jill Granoff, CEO of Eurazeo Brands. “We’re excited to combine our experience of building global beauty and fashion brands with Pat and her team’s unmatched creativity and passion.” Granoff has also had a successful career in beauty and fashion, including 10 years in senior leadership roles at Estée Lauder and seven years at Victoria’s Secret Beauty, where she helped to double sales from $500 million to $1 billion and launched the brand internationally during her tenure as President and Chief Operating Officer.

Virginie Morgon, CEO of Eurazeo, added, “We look forward to joining Pat McGrath Labs on its global journey to reach millions of new consumers who have followed the brand for years. We love to partner with brilliant entrepreneurs like Pat and believe this investment will be a success.”

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EURAZEO CONTACTS

PRESS CONTACT

 

CAROLINE COHEN

HEAD OF INVESTOR RELATIONS

E-mail: ccohen@eurazeo.com

Tel: +33 (0)1 44 15 16 76

STEPHANIE MARIA-BAJARD

DIR. COMMUNICATION

E-mail:  smaria-bajard@eurazeo.com

Tel: +33 (0)1 44 15 80 44

EDELMAN

CARLEIGH ROESER

E-mail: Carleigh.roesler@edelman.com

Tel: (917) 344 4779

For more information,please visit the Group’s website: www.eurazeo.com

Follow-us on Twitter,Linkedin, andYouTube

About Pat McGrath

 

Pat McGrath is an incomparable beauty trendsetter, having inspired and created the most ground-breaking and celebrated makeup looks of the 21st century. Named “the most influential make-up artist in the world” by Vogue, McGrath curates and creates the makeup looks for the couture and prêt-a-porter runway shows of the leading luxury fashion houses, including Prada, Louis Vuitton, Versace, Givenchy, Maison Margiela, Valentino and many others.

McGrath created the makeup looks for every Vogue Italia cover for more than 10 years, working with legendary photographer Steven Meisel, as well as for countless other covers, editorials, and campaigns for the world’s pre-eminent publications and luxury brands. McGrath is Beauty Editor-at-Large for British Vogue. McGrath is also the creative force behind top international makeup brands, including Giorgio Armani cosmetics, Gucci Beauty, Dolce & Gabbana: The Makeup, and as former global creative director of P&G Beauty, successfully transformed P&G Beauty into a leading player in luxury color cosmetics.

McGrath was honored by Her Majesty Queen Elizabeth II for services to fashion and beauty and has been designated a Member of the Order of the British Empire.

About Eurazeo Brands

Eurazeo Brands aims to invest a total of $800 million in high potential U.S. and European consumer companies with differentiated brands across a wide range of verticals including beauty, fashion, home, wellness, leisure and food. Eurazeo Brands partners with visionary founders and strong management teams to drive value creation by leveraging Eurazeo’s brand building and operating expertise, as well as its global network, with offices across four continents.

About Eurazeo

With a diversified portfolio of approximately €16 billion in assets under management, including €10 billion from third parties, Eurazeo is a leading global investment company with offices in Paris and Luxembourg, New York, Shanghai and Sao Paulo. Its purpose and mission is to identify, accelerate and enhance the transformation potential of the companies in which it invests. The firm covers most private equity segments through its five investment divisions – Eurazeo Capital, Eurazeo Croissance, Eurazeo PME, Eurazeo Patrimoine and Eurazeo Brands – and through three Idinvest business divisions: Venture Capital, Private Debt and Dedicated Portfolio & Funds. Its solid institutional and family shareholder base, robust financial structure free of structural debt, and flexible investment horizon enable Eurazeo to support its companies over the long term. As a global long-term shareholder, the firm offers deep sector expertise, a gateway to global markets, and a stable foothold for transformational growth to the companies it supports.

Eurazeo is listed on Euronext Paris.

ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA

About ONE Luxury Group

ONE Luxury Group is an investment fund focused on disruptive consumer and retail luxury businesses that combine both traditional and new communication and retail distribution models. ONE Luxury’s mission is to help build luxury brands that embrace new models of communication and customer acquisition whilst combining the best of traditional and online retail.

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Ardian takes a minority stake in the Spanish firm MKD

Ardian

Paris, July 2nd, 2018 – Ardian, a world-leading private investment house, today announces the acquisition of a minority stake in MKD, a Spain-based online platform that offers maintenance supervision and repair services for the fleet management sector.

Founded in 2014 by current CEO José Piñera, MKD has cemented its status as Spain’s leading platform for fleet managers wishing to outsource maintenance and repair services. With more than €20 million in sales and over 400,000 repairs made in Spain, MKD’s clients include top-tier companies from the car rental industry, including Europcar, Alphabet, Arval, Generali, Allianz and new players in mobility management. MKD has further extended its offer to individuals with the launch of Reparatuchoche.com.

José Piñera, CEO of MKD, said: “In order to speed up our development and reinforce our position as a leader, we decided to enter into a new phase of our development, which include seizing external opportunities and deploying new technological services. To support our vision, Ardian Growth stood out as the partner of choice given their excellent support in our build-up strategy prior to becoming shareholder, and their strong expertise in the digital sector.”

In addition to accessing Ardian Growth’s network and expertise, this partnership will help management consolidate the company’s leading position in the fleet management industry. In this rapidly expanding sector, MKD is one of the few players to have successfully developed interoperable services with a wide range of market players.

Bertrand Schapiro, Senior Investment Manager at Ardian Growth, said: “For more than a year, we built a strong relationship with José and MKD’s senior team, which helped us outline the terms and priorities of our partnership. The acquisitions of PTRZ and Fortius – that are taking place simultaneously with our investment – provide a good illustration of this”.

Laurent Foata, Head of Ardian Growth, added: “After our recent investment alongside T2O’s founders, this transaction highlights our aim to become a leading Growth Equity player for Spanish-based entrepreneurs looking for a sparring partner capable of supporting their development, both within Spain and internationally.”

ABOUT MKD
Founded in 2014 by current CEO José Piñera, MKD is a leading player in the supervision of maintenance and repair services for fleet managers. With over 250 experts and a large network of garages across Spain, the company offers through its online platform maintenance and repair cost optimization, and shorter “Vehicle off road” events.

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$71bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base.

Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world.

Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 500 employees working from fourteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo). It manages funds on behalf of around 700 clients through five pillars of investment expertise: Funds of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.

LISTE DES PARTICIPANTS

MKD: José Piñera, Fernando Pérez Granero
Legal advisor: Gómez-Acebo & Pombo Abogados
Ardian: Laurent Foata, Bertrand Schapiro, Louise Gros
Legal advisor: EY (Francisco Aldavero Bernalte, Hector Gomez Ferrero)
Financial due diligence: Deloitte (Jordi Valls, Yannis Arago)
Tax due diligence: Deloitte (Santiago Doce, Ian Bueno)

PRESS CONTACTS

ARDIAN
Headland
CARL LEIJONHUFVUD
CLeijonhufvud@headlandconsultancy.com
Tel: +44 20 3805 4827

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Priveq – a new growth partner for Lamiflex

Priveq

Lamiflex, a world leading supplier of transport packaging solutions mainly to the steel, aluminum and cable industries, is bringing in Priveq Investment (“Priveq”) as growth partner for the future. CEO and management as well as the former majority owners will continue to be a part of the owner group.

Lamiflex was founded in 1992 and started with the product ”Lamiflex”, protecting steel pipes and bars during transportation. The portfolio has today grown to offer complete solutions to a number of industries, i.e. oil and gas as well as the automobile industry. The company works in seven countries with headquarters in Nyköping in the south of Sweden with 63 employees in total.

During the last 30 years, the world steel production, excluding China, has been on a relatively even level even during economic decline and at times with volatile steel prices. Since a few years back, a structural shift has occurred in the market for transport packaging in the steel and aluminum industry – mainly steel protection and non-automatic processes have been replaced by plastic protection and automatisation, which is expected to drive Lamiflex’s addressable market mainly in Europe and South Korea. Through the partnership with Priveq, good conditions are created for continued growth and development of the company.

”We are impressed by the way Lamiflex has managed to establish itself as a niche actor with a strong offer and a unique position in the market. We look forward to work together with Lamiflex and actively support the company ahead.”, says Johan Koch, Partner at Priveq.

”We are very pleased to have Priveq as a growth partner in Lamiflex. Priveq has a broad experience from over 100 growth companies and we are convinced that Priveq will help us in taking the next step in our development.”, says Adrian Robert, CEO of Lamiflex.

”As Chairman of the Board and co-owner, I am leaving the baton to Priveq with warm hands. Together with the other former main owners, I will continue to invest and follow Lamiflex in to the next phase of growth and we are convinced that Priveq is a great partner to do this with.” says Wiking Henricsson, resigning Chairman of the Board in Lamiflex.

For more information, please contact:

Johan Koch, Partner and Investment Manager, Priveq Investment
Tel: +46 (0)70 813 04 18
johan.koch@priveq.se

Adrian Robert, CEO Lamiflex
Tel: +46 (0)72 858 99 81
adrian.robert@lamiflex.se

About Lamiflex
The Lamiflex Group is a world leading supplier of transport packaging solutions mainly in the steel, aluminum and cable industries as well as within oil and gas. The portfolio consists of material, machinery, services and methods for optimal packaging solutions. The Lamiflex Group is headquartered in Nyköping in the south of Sweden and with subsidiaries all over the world.

More information is available at www.lamiflex.se.

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The Carlyle Group agrees to invest in LPG Systems, manufacturer of non-surgical aesthetic and physiotherapy devices

Carlyle

Fresh capital will support international expansion and growth

Valence, France, 16 July 2018 – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announces that it has agreed to acquire a majority stake in LPG Systems (LPG), the specialist manufacturer of non-surgical aesthetic and physiotherapy devices, to support the company’s continued international expansion and growth trajectory. Equity for the transaction will come from Carlyle Europe Technology Partners III and Carlyle Asia Growth Partners V. The Guitay family will remain shareholders alongside Carlyle. The transaction is subject to customary regulatory approval and is expected to close by end of September this year.

Founded in 1986 by Louis-Paul Guitay, LPG has developed a non-surgical technology that serves the global medical, physiotherapy and aesthetics markets. The company’s technology enables physicians to provide advanced solutions for a broad range of medical, therapeutic and aesthetic applications including body contouring, cellulite and fat reduction, facial rejuvenation, burn treatment, scars reduction, lymphatic drainage and neuro physical training. Physiotherapists, medical clinics as well as Spas and luxury hotels in more than 100 countries currently use LPG devices.

Key to LPG’s success is its unique, patented technology, based on cells stimulation called Endermologie®. It is a treatment that the company has developed in close collaboration with scientists and practitioners, and is widely recognized by more than 140 scientific studies and 80 medical publications. LPG’s product portfolio is designed around the concept of well-being, offering a balance between efficiency and natural, painless treatments.

Nathalie Guitay, Chair of LPG, said: “Carlyle’s investment is testament to the strength of LPG’s product portfolio and our unparalleled technology. For more than 30 years, we have invested in R&D to develop non-surgical devices with wide-ranging applications that are suitable for our customers and patients. With the support of Carlyle, and drawing on its experience in international healthcare and consumer markets, we believe we are well positioned to further grow LPG’s international presence and to broaden our customer base whilst enhancing our product portfolio and the application of our devices.”

Vladimir Lasocki, Managing Director and co-Head of the Carlyle Europe Technology Partners team, said: “LPG is a business with strong brand recognition and an incredible reputation among both medical practitioners and end customers. LPG has successfully expanded the use of its technology across a broad range of physiotherapeutic and medical-aesthetic applications, and today they are well positioned to take advantage of the rising demand for non-surgical, natural treatments.”

Ling Yang, Managing Director of the Carlyle Asia Partners team, added: “We believe there is a great opportunity to further expand LPG’s business in Asia, particularly in China and Japan, through Carlyle’s local presence. We look forward to partnering with LPG’s management team as the company continues to grow and innovate.”

*****

About LPG Systems

For 30 years, LPG has been developing, manufacturing and marketing patented advanced technologies for the medical, physiotherapy, aesthetic and athletic markets worldwide. Endermologie® is the only 100% natural, non-invasive and non-aggressive technique that exist today. It mechanically stimulates the cells to naturally revive and rejuvenate skin. It allows simultaneous treatment of fat reduction and body contouring.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $201 billion of assets under management across 324 investment vehicles as of March 31, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,575 people in 31 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

About Carlyle Europe Technology Partners

Carlyle Europe Technology Partners (CETP) seeks to invest in European technology, media and telecommunications (TMT) companies. CETP’s European team of advisors provides strategic direction and resources to help accelerate the growth of companies in which CETP has invested and to support their efforts to expand internationally and to open up new market opportunities. The current fund is now the fourth one in the CETP franchise. In total, more than 143 investors from 34 countries have made commitments to CETP funds.

About Carlyle Asia

The Carlyle Asian private equity team (excluding Japan) has more than 50 investment professionals in eight offices, including Beijing, Hong Kong, Jakarta, Mumbai, Seoul, Shanghai, Singapore and Sydney. As of March 31, 2018, Carlyle’s Asian private equity platform has invested more than US$15 billion of equity, and currently has US$16.3 billion of assets under management.

In China, Carlyle has invested more than US$8 billion of equity in over 95 transactions as of March 31, 2018.

In Japan, Carlyle is the only global alternative asset manager to establish a dedicated Japan buyout fund denominated in yen. Carlyle’s Japan buyout funds, which have made 23 investments in Japan, have a track record of supporting Japanese mid-cap companies’ overseas business expansion, enhancing their operational efficiency and strengthening their management infrastructure.

Media Contacts

LPG Systems
Mandarine Basset
mandarine.basset@lpgsystems.com

The Carlyle Group

Katarina Sallerfors
Katarina.sallerfors@carlyle.com
+44 (0)20 7894 3554

Brian Zhou
Brian.zhou@carlyle.com
+86 10 57067070

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Cinven to acquire and combine Viridium Group and Generali Lebensversicherung AG

Cinven

Transformational acquisition creating clear leader in German life insurance consolidation market

International private equity firm, Cinven, today announces that the Sixth Cinven Fund has agreed to acquire the Viridium Group (‘Viridium’ or ‘the Group’), a leading life insurance consolidation platform in Germany, and to provide equity funding for Viridium to acquire Generali Lebensversicherung AG (‘Generali Leben’), a life insurer with c. 4 million policies and c. €40 billion of assets under management, in a transformational acquisition.

Headquartered in Neu-Isenburg, Viridium currently manages c. 1 million insurance policies and c. €15 billion of assets. Generali Leben is one of the Life subsidiaries of Generali Deutschland AG, the second largest German primary insurance Group, and is focused on traditional life guaranteed insurance products. The combination of Viridium and Generali Leben will create a clear leader in the German life insurance consolidation market, with c. 5 million policies and assets under management of c. €55 billion, and generate significant operational synergies.

Cinven’s Financial Services team believes the combination of Viridium and Generali Leben is an attractive investment for the Sixth Cinven Fund given:

  • The German life insurance market remains highly fragmented with a significant number of acquisition opportunities for a leading consolidator such as Viridium;
  • Viridium operates a well-invested and scalable administration platform, with IT infrastructure that has been specifically designed to administer the full spectrum of German life insurance policies;
  • Generali Leben policyholders will benefit from the cost advantages of the Viridium model over the long-term, as a core part of the Viridium Group and from the comprehensive co-operation with Generali Deutschland;
  • The combination of Viridium and Generali Leben will enable the realisation of material operational synergies due to their unique expertise and their successful investment in superior IT infrastructure, allowing for scale effects;
  • Viridium will adopt all existing agreements and the c. 300 employees, currently already managing the closed book of Generali Leben, will become part of the Viridium Group;
  • Viridium’s significant asset and risk management capabilities will benefit the Generali Leben policyholders by ensuring that the business remains robustly capitalised over time. The combined entity will also benefit from improved diversification at Group level; and
  • These synergies, together with the full focus on best in class service makes combination a highly attractive platform for both policyholders and employees.

Generali Deutschland and Viridium will establish an innovative comprehensive partnership to serve the interests of customers and all stakeholders. Generali Deutschland AG will also retain a minority stake of 10.1% in Generali Leben and a Supervisory Board position and has an option to purchase a stake of up to 10% in Viridium at completion. Hannover Re, one of the largest reinsurance groups in the world, will reinvest as part of the transaction to maintain its stake in the combined Viridium and Generali Leben entity.

Caspar Berendsen, a Partner at Cinven, commented:

“We know Viridium and its management team extremely well, with our Financial Services and German teams having worked alongside them to successfully execute Viridium’s consolidation strategy over the past four years. The Group has acquired and integrated several sizeable life insurance businesses already, and now the acquisition of Generali Leben represents a transformational step-change for the business. In almost quadrupling its assets under management, the enlarged business will provide considerable further benefits for all stakeholders.”

Rory Neeson, a Partner at Cinven, added:

“Cinven has a long and proven track record of successfully investing in the life insurance consolidation sector in Europe through its investments in Guardian Financial Services, Viridium and Eurovita. This transaction represents an attractive opportunity for the Sixth Cinven Fund to create a clear leader in the German life insurance consolidation market. The combined Group will have a diversified portfolio of traditional guaranteed and unit-linked insurance policies and it will be the proven scale consolidator in its market with a unique integration track record. We expect the enlarged Viridium Group to continue to benefit from further M&A opportunities in future.”

Dr. Heinz-Peter Roß, Chief Executive of Viridium, added:

“We are delighted that Cinven is continuing to invest in Viridium, enabling us to acquire Generali Leben, as we continue to grow the business through the consolidation of life insurance businesses currently owned by other German insurers. We have demonstrated our ability to manage these businesses for the benefit of all stakeholders through our well-invested administration platform, as well as improving returns through more efficient asset management and implementing robust risk management.”

Completion of this transaction is subject to approval by the German Federal Financial Supervisory Authority (BaFin) and the respective anti-trust authorities.

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Cinven Fund 5 to sell specialist life insurance provider, Viridium Group

Cinven

Successful German life insurance consolidation further strengthens Cinven’s Financial Services track record

International private equity firm, Cinven, today announces that the Fifth Cinven Fund has agreed to sell Viridium Group (‘Viridium’ or ‘the Group’), a leading consolidation platform for life insurance companies and portfolios in the German market for an undisclosed consideration.

The Fifth Cinven Fund acquired Viridium (formerly Heidelberger Leben Group) in March 2014 for an enterprise value of approximately €300 million. This transaction created the initial platform for Cinven’s strategy to consolidate the German life insurance market, building on its successful consolidation of the UK life insurance market through its investment in Guardian Financial Services.

At acquisition, Viridium had a portfolio of c. 600,000 policies and €5.2 billion of assets. Over the past four years, Cinven has actively supported the transformation of Viridium into the largest and most advanced life insurance consolidation platform in Germany:

  • Cinven has worked closely with Viridium’s management team to consolidate the German market, acquiring Skandia’s Germany and Austria businesses from Old Mutual Group in October 2014 and subsequently acquiring the life insurance business of Protektor Lebensversicherungs-AG in July 2017, renamed to Entis. As a result of these acquisitions, Viridium now manages a combined total of c. 1 million insurance policies and c. €15 billion of assets;
  • An advanced, modular and scalable IT platform has been developed and implemented in order to integrate large scale portfolio migrations; and
  • The management team has been further strengthened with appointments of a new Chairman, CEO, COO, CIO and Chief Actuary to enable the Group to capitalise on, and subsequently integrate, market consolidation opportunities.

Cinven has a strong track record in the Financial Services sector, particularly in life insurance consolidation. In the UK, Cinven successfully realised its investment in Guardian Financial Services to Admin Re in 2016. In Italy, Cinven is currently executing a life insurance consolidation strategy through its investment in Eurovita, which was formed through the acquisitions and subsequent combination of ERGO Previdenza, Old Mutual Wealth Italy and Eurovita Assicurazioni.

In Germany, Cinven’s other current investments include STADA, the European manufacturer of prescription generics and over-the-counter pharmaceutical products; and Synlab, the European clinical laboratory services company. This transaction follows Cinven’s successful German realisations in the past 18 months including CeramTec, the global manufacturer of high performance ceramics (March 2018); HEG; the European provider of hosting and domain services to consumers and SMEs (April 2017); and SLV, the lighting manufacturer and distributor (January 2017).

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TA Associates Announces Minority Investment in Prudent Corporate Advisory Services

TA associates

BOSTON, MUMBAI and AHMEDABAD – TA Associates, a leading global growth private equity firm, today announced that it has completed a minority investment in Prudent Corporate Advisory Services (“Prudent”), an independent distributor of mutual fund and other wealth products in India. Financial terms of the transaction were not disclosed.

Founded in 2001, Prudent provides personal and corporate investment planning services through the distribution of mutual funds, bonds, broking and insurance products. The company operates through its network of over 10,000 Independent Financial Advisors (“IFAs”) and has in excess of 18,000 Cr of assets under management (“AUM”). Prudent provides its IFA partners with training and development services, technology platforms to grow and manage their client-base, back-office services, and sales and marketing support. The company is headquartered in Ahmedabad, Gujarat and operates a total of 70 branches across 19 states in India.

“With its IFA-centric business model, multiple service offerings and robust technology platforms, we believe Prudent represents a unique and exciting investment opportunity,” said Aditya Sharma, Senior Vice President, TA Associates Advisory Private Limited, who will join the Prudent Board of Directors. “We look forward to collaborating with the entire Prudent team to help take the company to the next level.”

“TA’s investment is a critical milestone for Prudent as we embark on our next phase of growth and seek to deepen our presence across multiple states and untapped markets,” said Sanjay Shah, Founder and Managing Director of Prudent Corporate Advisory Services. “As an active and respected investor within the financial services vertical, TA has developed a quality reputation of forming trust-based relationships with founders and management teams that lend themselves to positive results. It is evident that TA shares our vision to incorporate additional value creation for our customers and IFA partners, and we are thrilled to have them as part of the Prudent family.”

The Indian asset management industry’s AUM has grown at a compounded annual growth rate (CAGR) of 18% over the last 10 years. As of the end of March 2018, the industry had a total AUM of approximately $338 billion. Furthermore, according to AMFI, the industry’s AUM is expected to grow at a 23% CAGR for the next 5 years and reach $936 billion by 2023.

“Due to growing investor awareness and increasing mutual fund penetration, we anticipate that the Indian asset management space will experience significant long-term growth,” said Dhiraj Poddar, Country Head of India at TA Associates Advisory Private Limited, who also will join the Prudent Board of Directors. “Because of this trend, we have spent a fair amount of time and resources tracking the Indian asset management, distribution and allied services space. We believe that Prudent is well-positioned to capitalize in this large and developing marketplace and can provide notable benefits to India’s growing wealth management sector.”

“Since Prudent’s founding, we have strived to provide the highest quality end-to-end services and training programs for our network of IFAs to ensure that we are positioning them for success,” said Shirish Patel, Chief Executive Officer of Prudent Corporate Advisory Services. “With TA’s investment, we will look to scale the business to meet the evolving needs and goals of our dedicated client base. We welcome TA as an investor in Prudent and are eager to begin working with their talented team of investment and operating professionals.”

DSK Legal provided legal counsel to TA Associates. Shardul Amarchand Mangaldas & Co. provided legal counsel to Prudent.

About Prudent Corporate Advisory Services
Prudent Corporate Advisory Services provides personal and corporate investment planning services through the distribution of mutual funds, bonds and third-party products. In addition to having a large pool of its own clients, Prudent also manages geographically diverse business operations through an exclusive platform for Independent Financial Advisors (IFAs). Prudent provides the advisors with the latest training and consultation, technology, operations, back-office and support for sales and marketing. Prudent distributes its products to approximately 560,000 retail investors through its network of over 10,000 IFAs. The company is headquartered in Ahmedabad, Gujarat and operates a total of 70 branches across 19 states in India. More information about Prudent can be found at www.prudentcorporate.com.

About TA Associates
Now in its 50th year, TA Associates is one of the largest and most experienced global growth private equity firms. Focused on five target industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in nearly 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in growth companies. TA has raised $24 billion in capital since its founding in 1968 and is committing to new investments at the pace of $1.5 to $2 billion per year. The firm’s more than 80 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA Associates can be found at www.ta.com.

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