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Ampersand Invests Alongside KKR in Biosynth Carbosynth and Simultaneously Merges in vivitide

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Ampersand
Combination of Biosynth Carbosynth and vivitide creates global life sciences platform serving high-growth biopharma and diagnostics end markets

LONDON–(BUSINESS WIRE)–KKR, a leading global investment firm, announced today the closing of its previously announced investment in Biosynth Carbosynth, an innovative life sciences reagents, custom synthesis and manufacturing services company, as well as Biosynth Carbosynth’s acquisition of vivitide, a global provider of custom peptides and antibodies for the life sciences and biotech industry. Existing vivitide owner Ampersand Capital Partners will roll over its entire stake and become a substantial minority shareholder of the combined entity. Together, KKR and Ampersand plan to accelerate the company’s geographic expansion, broaden its capabilities, and expand its product portfolio.

“We are thrilled to begin this next chapter for Biosynth Carbosynth with KKR and Ampersand and to welcome our new colleagues at vivitide. We will benefit greatly from vivitide’s strong U.S. presence, complementary portfolio of products and services, and entrepreneurial culture,” said Dr. Urs Spitz, CEO and President of Biosynth Carbosynth. “This acquisition marks an important milestone in our ambitious journey to become a leading global partner providing critical materials to the biopharma and diagnostics industries. With the support of KKR and Ampersand, we look forward to continuing to partner with premium, rapidly growing businesses across the highly fragmented life sciences supply chain.”

Dr. Martina Diekmann, CEO of vivitide, added, “vivitide is proud to join forces with Biosynth Carbosynth, who shares our passion for scientific excellence, customer service, and continuous innovation. As part of a global operation, we will be able to accelerate our growth, expand our product offering, and continue to deliver best-in-class products and services to our customers.”

Kugan Sathiyanandarajah, Managing Director at KKR and Head of Europe for KKR’s Health Care Strategic Growth strategy, and Anuv Ratan, Director at KKR, said, “The acquisition of vivitide further positions Biosynth Carbosynth as a premium global platform serving high-growth end markets in the life sciences. We look forward to supporting Urs, Martina, and the employees of both businesses and are thrilled to welcome Ampersand, with whom we have a long-standing relationship, as an important partner.”

Eric Lev, General Partner at Ampersand, added, “We are excited to see our vivitide investment become part of this global organization. We have built a trusted relationship with KKR over the past few years and look forward to working together with them to drive future organic and inorganic growth.”

KKR invested in Biosynth Carbosynth through KKR Health Care Strategic Growth Fund II, a $4.0 billion fund focused on investing in high-growth health care companies for which KKR can be a unique partner in helping companies reach scale.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Biosynth Carbosynth

Biosynth Carbosynth is a Research Products, Life Sciences Reagents and Custom Synthesis and Manufacturing Services Company with global research, manufacturing and distribution facilities. They are the supplier of choice for many in the pharmaceutical, life science, and diagnostic sectors and manufacture and source a vast range of chemical and biochemical products. The company specializes in carbohydrates, nucleosides, phospholipids, enzyme substrates, antimicrobials, APIs and natural products and have a full range of reagents for protein production and analysis. Find out more about Biosynth Carbosynth at www.carbosynth.com.

About Ampersand Capital Partners

Founded in 1988, Ampersand is a middle market private equity firm with more than $2 billion of assets under management dedicated to growth-oriented investments in the healthcare sector. With offices in Boston and Amsterdam, Ampersand leverages its unique blend of private equity and operating experience to build value and drive superior long-term performance alongside its portfolio company management teams. Ampersand has helped build numerous market-leading companies across each of the firm’s core healthcare sectors. Additional information about Ampersand is available at ampersandcapital.com.

About vivitide

vivitide is a global provider of custom peptides, antibody services, and catalog products for the life science and biotech industry. Formed by the merger of New England Peptide (founded 1998) and Peptides International (founded in 1983) in 2019, vivitide is headquartered in Gardner, MA, with significant operations in Louisville, KY. Committed to outstanding quality and customer service, vivitide provides a broad portfolio of custom peptide synthesis services, custom antibodies, catalog peptides, and biochemicals to academia, pharmaceutical, biotech, and diagnostic companies worldwide.

Media Contacts

KKR
Alastair Elwen / Sophia Johnston
Finsbury Glover Hering
+44 20 7251 3801
KKR_LON@finsbury.com

Categories: News

BPEA to Join Forces with EQT, Creating a Scaled Active Ownership Platform in Asia

BPEA

EQT AB (publ) (“EQT”) has reached an agreement to combine with Baring Private Equity Asia (“BPEA”) (the “Transaction”), a leading private markets investment firm in Asia with EUR 17.7bn of assets under management (“AUM”).

 Transaction highlights

  • The combination with BPEA, a leading Pan-Asian private markets firm, provides a step-change to EQT’s presence in Asia, and ideally positions EQT to execute on the structural growth opportunity in Asian private markets
  • Asian private markets are expected to grow at almost twice the rate of global private markets and investors are set to materially increase their private markets allocations in the region
  • With an exceptional cultural fit, a strong performance track-record, aligned approach to thematic investing, and a commitment to accelerate digitalization and sustainability, the combination provides an opportunity to leverage the strengths of both organizations to create one of the leading players in active ownership in Asia
  • Following the combination, EQT will be local-with-locals in 25 countries, representing ~80% of global GDP, thereby creating a truly global platform poised to expand EQT’s active ownership strategies across its core markets
  • The combined Asian Private Capital business will be rebranded as BPEA EQT Asia and will continue to be led by BPEA CEO Jean Eric Salata and BPEA’s senior management team
  • Total consideration of EUR 6.8bn, consisting of 191.2m new ordinary EQT shares, valued at EUR 5.3bn, plus EUR 1.5bn in cash
  • The combination is expected to be immediately high single digit accretive to EQT’s EPS

Expanding in Asia is a strategic priority for EQT, as the region accounts for more than a third of global GDP today and is expected to contribute 40%+ of global GDP growth by 2030[1]. With 24% CAGR since 2015 and reaching ~USD 2.1tn in 2021, Asia is the growth engine underpinning global private markets (compared to 14% CAGR for Europe and North America combined). This trend is expected to continue as Asian private markets benefit from favorable long-term structural tailwinds. Global private markets firms are increasingly taking share in the underpenetrated Asian private markets, but still only represent 34% of the total market. With this combination, EQT is ideally positioned to take market share in and capitalize on the Asian growth opportunity with its truly global reach and scaled active ownership platform in Asia.

BPEA is a top-3 private markets investment manager[2] in Asia with EUR 17.7bn AUM, currently investing from its flagship Private Equity Fund VIII, which had its first close in September 2021. Operating since 1997, BPEA has built a platform with deep sector-based expertise and a value-driven active ownership approach, investing in mid to large-cap companies in Asia, mainly focused on Private Equity, but also Real Estate and more recently Growth. With 10 regional offices, BPEA combines local execution with a Pan-Asian reach (236 FTE+ as of 2021), mirroring EQT’s local-with-locals approach. BPEA has made 100+ Private Equity investments since its inception and has a track-record of generating strong returns for its clients, with 2.6x realized gross MOIC since inception[3]. With its deep, long-standing relationships with 300+ clients and best-in-class fundraising ability, BPEA is well positioned to capitalize on the outsized Asian growth opportunity.

The combination represents a step-change in EQT’s global reach with immediate Pan-Asia presence at scale and with its thematic investment approach, supporting companies from early stage to maturity, EQT will continue to scale and expand its range of strategies across its European, North American, and Asian core markets and deliver for its clients.

Strategic rationale

  • Transformative to EQT’s presence in Asia: Expansion into Asia was one of EQT’s key strategic objectives set out at the time of its IPO. BPEA is the perfect partner and will create a step-change for EQT in Asia
  • Creates a global leader in active ownership strategies: EQT will become a top 3-player[4] in active ownership strategies globally, and with a scaled Asian platform, EQT now has truly global reach
  • Strong performance track-record: BPEA’s success and scale is reflected through its AUM growth at 25% CAGR (2019-2021) and an outstanding 2.6x realized gross MOIC since inception[5]
  • Exceptional cultural fit: BPEA’s corporate culture is aligned with EQT’s core values: high-performing, respectful, entrepreneurial, informal, and transparent. Both firms have grown through a local-with-locals approach, with decentralized decision making and a deep drive to learn and continuously improve
  • Similar ambitions and approach to future-proofing and value creation: Utilize EQT’s Digitalization, Sustainability and thematic investing toolboxes will accelerate the value creation opportunity in Asia
  • Turbo-charges Real Estate growth in Asia: BPEA Real Estate further extends EQT Exeter’s on-the-ground footprint in Asia and positions the platform to continue to scale its business in the region
  • Clearly identified value creation opportunities: Leverage the combined platform and BPEA and EQT’s strong brands to rapidly scale Private Equity, and over time launch EQT’s other Private Capital strategies in Asia (e.g., Public Value, Ventures, Life Sciences and Future)
  • Broader client access: BPEA brings a wide range of high-quality client relationships to the EQT platform, with over 300 existing clients, of which 100+ are new clients for EQT
  • Highly strategic combination, while being immediately accretive: The Transaction is expected to be immediately high single digit accretive to EQT’s EPS

 Christian Sinding, CEO and Managing Partner of EQT:

“We are very excited to join forces with BPEA, which represents a step-change in our global reach with immediate Pan-Asian presence at scale. Expanding our footprint in Asia is part of the strategic objectives we set out at the time of our IPO, and BPEA represents a unique opportunity, as a well-established and top-performing firm in the region, to enhance our global platform and position us to capitalize on the structural growth opportunity in Asian private markets. With its thematic sector-based approach, strong track-record in value creation, and most importantly, a learning culture and long-term partnership approach, we feel deeply aligned with BPEA. We are truly impressed by what Jean and the BPEA team have built over the past 25 years. A perfect cultural and ideological fit with EQT, and a unique opportunity to establish EQT as a world-leading private markets platform with a scaled Asian platform and truly global reach”

Jean Eric Salata, CEO and Founder of BPEA:

“We are thrilled to embark on this journey with EQT and by the possibilities that this combination creates. It is a game-changer for both our firms and will accelerate our ability to deliver superior returns for our clients. The cultural fit between our two firms is remarkable and the strategic fit is very powerful. Combining our strong position in Asia with EQT’s world-class capabilities in sectors, such as Healthcare and Technology, their proprietary digital transformation and data analytics resources, and their leadership in sustainability, will create a highly differentiated and extremely competitive private markets firm in Asia and globally. The future of Private Equity is about the ability to truly transform companies through active ownership strategies that deliver superior returns to clients throughout the cycle, regardless of the external environment. This combination positions us extraordinarily well to do exactly that at an industry leading-level.” 

Organizational set-up and governance

EQT Private Capital will have two divisions post-Transaction – BPEA EQT Asia, comprising the combined BPEA Private Equity and EQT APAC Private Equity teams, and EQT Private Capital Europe & North America. Over time, BPEA EQT Asia is expected to provide the full suite of Private Capital strategies, from Ventures through Future, similar to what EQT Private Capital Europe & North America offers today. Mr. Salata will become Head of BPEA EQT Asia and will oversee EQT’s Private Capital business in Asia, reporting directly to Christian Sinding. Mr. Salata will also join EQT’s Executive Committee.

BPEA’s Real Estate business will be integrated into EQT Exeter, operating as one global platform. Since the acquisition of the Exeter Property Group in April 2021, EQT Exeter has been growing globally, including into Asia through the acquisition of Bear Logi in January 2022. The combination with BPEA Real Estate will significantly enhance EQT Exeter’s local presence across the region.

EQT Infrastructure will continue to operate on a global basis (including Asia) but is expected to benefit from BPEA’s strong local footprint to generate increased deal flow.

The combined EQT footprint in Asia will consist of more than 300 FTE+ across 9 regional offices, creating a large-scale Pan-Asian platform. EQT will have more than EUR 20bn of invested AUM in Asia across Private Capital and Real Assets.

 Key transaction details

  • EQT will acquire 100% of the BPEA management company, the BPEA general partner entities which control the BPEA funds, and the right to carried interest in selected existing funds (including 25% in BPEA Fund VI and 35% in BPEA Fund VII)
  • EQT will invest in and be entitled to 35% of the carried interest in all future funds, starting with BPEA Fund VIII, in line with existing EQT policies
  • Total consideration of EUR 6.8bn on a cash and debt free basis (with a normalized level of working capital), of which approximately EUR 5.3bn to be paid through the issue of 191.2m new EQT ordinary shares (corresponding to a dilution of approximately 16%), plus EUR 1.5bn in cash
  • EQT has cash and facilities in place to fund the cash consideration. In addition, EQT may review long-term financing options
  • The Transaction is subject to customary closing conditions, including anti-trust, regulatory approvals and certain BPEA fund investor consent approvals, as well as EQT majority shareholder approval at the Annual General Meeting (“AGM”) in June 2022, granting the Board of Directors of EQT the authority to issue the consideration shares; major EQT shareholders representing in total more than 50% of EQT’s share capital have irrevocably committed to vote in favor of the share issue authorization
  • The Transaction is expected to close in Q4 2022

Share consideration lock-up

Share consideration for Mr. Salata and other key members of BPEA’s management will be subject to customary lock-up provisions, consistent with those of current senior EQT partners (10% released in September 2023, the remaining shares are then released in equal annual instalments of 20% per year in September 2024, September 2025, September 2026, September 2027 and September 2028), while also including a share forfeiture mechanism. Share consideration for Affiliated Managers Group, Inc. (“AMG”), which owns 15% of BPEA, will have 75% of the EQT shares released at closing and 25% subject to a lock-up period of 180 days on the basis of a customary lock-up agreement for an institutional investor.

Selected financial information for BPEA[6]

EURm 2019 2020 2021
Fee-generating AUM (EoP, EURbn) 11.3 10.7 17.7
Revenue 215 227 309
– Of which management fees 215 222 236
EBITDA 117 129 206
EBITDA margin (%) 54% 57% 67%

 

Standalone, and subject to the ongoing fundraisings, BPEA fee-generating AUM is expected to be at EUR 20bn at year-end 2022, generating EUR 350-375m in management fees during 2022.

Advisers

Morgan Stanley & Co. International plc is acting as financial adviser to EQT in relation to the Transaction, while Kirkland & Ellis International LLP and Vinge are acting as legal counsel. J.P. Morgan and Goldman Sachs are joint lead advisers to BPEA, and Simpson Thacher & Bartlett LLP, Paul, Weiss, Rifkind, Wharton & Garrison LLP and Mannheimer Swartling are acting as legal counsel to BPEA and Mr. Salata.

EQT Contacts

Olof Svensson, Head of Shareholder Relations, olof.svensson@eqtpartners.com, +46 72 989 09 15
Rickard Buch, Managing Director Communications, press@eqtpartners.com, +46 72 989 09 11
EQT Press Office, +46 8 506 55 334

For international media inquiries

Greenbrook: Andrew Honnor, James Madsen, Alex Jones, eqt@greenbrookpr.com, +44 (0) 20 7952 2000

Presentation

Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CET.
The presentation and a link to follow the webcast and conference call live can be found here and a recording will be available afterwards.
To participate by phone, please use the following dial-in details below, at least 10 minutes in advance.

Sweden: +46 856642651
UK: +44 3333000804
Finland: +358 981710310
Denmark: +45 35445577
Norway: +47 23500243
Confirmation code: 93509653#

This is information that EQT AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CET on 16 March 2022.

This press release contains forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward- looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond EQT’s control, which may cause actual results to differ significantly from those expressed in any forward- looking statement. All forward-looking statements reflect EQT’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, EQT disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Morgan Stanley & Co. International plc (“Morgan Stanley”), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting exclusively as financial adviser to EQT and no one else in connection with the Transaction. In connection with such matters, Morgan Stanley, its affiliates and their respective directors, officers, employees and agents will not regard any other person as their client, nor will they be responsible to anyone other than EQT for providing the protections afforded to clients of Morgan Stanley nor for providing advice in connection with the Transaction, the contents of this announcement or any matter referred to herein.

About EQT

EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. Uniquely, EQT is the only large private markets firm in the world with investment strategies covering all phases of a business’ development, from start-up to maturity. EQT today has EUR 73.4 billion in assets under management across 28 active funds within two business segments – Private Capital and Real Assets.

With its roots in the Wallenberg family’s entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.

The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in 23 countries across Europe, Asia-Pacific and the Americas and has approximately 1,200 employees.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

 

[1] Source: Euromonitor
[2] By AUM, excluding international private markets peers with presence in Asia
[3] Since inception defined as the timing of creation of the independent firm (from Fund III and onwards)
[4] Source: Preqin, Pitchbook, Desk research. Based on fee-paying capital raised for funds closed in 2017 or later (excluding funds closed prior to 2017 and passive funds)
[5] Since inception defined as the timing of creation of the independent firm (from Fund III and onwards)
[6] USD/EUR exchange rate as of each year end for AUM and as an average of the calendar year for income statement figures. Financial information includes BPEA Credit

Categories: News

Balance Point Announces its Investment in Concord Servicing

Balance Point Capital
Westport, CT, March 15, 2022 – Balance Point Capital Advisors, LLC (“Balance Point”), in conjunction with its affiliated fund, Balance Point Capital Partners V, L.P., is pleased to announce its investment in Concord Servicing Corporation (“Concord” or “the Company”), a portfolio company of Inverness Graham Investments (“IGI”). Balance Point provided a creative, flexible financing solution that facilitated IGI’s acquisition of the Company.
Founded in 1988 and headquartered in Scottsdale, AZ, Concord is a full-scope loan servicer delivering innovative, flexible, and scalable portfolio servicing and SaaS solutions to meet the demands of loan originators and capital providers across multiple asset classes including home improvement, solar, energy efficiency, and vacation ownership.
“We are delighted to support an established industry leader such as Concord, and we are excited to partner for the first time with IGI,” said Balance Point Managing Partner Seth Alvord. “Concord offers a clear value proposition within the attractive end markets it serves, and we believe there are significant opportunities for the team to drive meaningful growth going forward” added Adam Sauerteig, Managing Director at Balance Point.
Mark Johnson, CEO of Concord, said “Balance Point’s understanding of our business, combined with its capital creativity, will be essential as we continue to pursue our growth objectives.  We are very pleased to be partnering with Balance Point on this transaction.”
“We are thrilled to begin what we hope will be a strong and productive partnership with Balance Point” added IGI Vice President Trey Simpson.
About Balance Point
Balance Point is an alternative investment manager focused on the lower middle market. With approximately $1.7 billion in assets under management, Balance Point invests debt and equity capital in select lower middle market companies across a variety of investment vehicles. Balance Point takes a long-term, partnership approach to investing and is committed to building lasting relationships with its partners, management teams and intermediaries.
Balance Point is a registered investment advisor. Further information is available at www.balancepointcapital.com.
About Concord
Concord is a full-scope loan servicer delivering innovative, flexible, and scalable portfolio servicing and SaaS solutions to meet the demands of loan originators and capital providers (and their customers) across multiple asset classes including home improvement, solar, energy efficiency, and vacation ownership. Founded in 1988, Concord services over two million consumer obligations totaling $7.7 billion, of which $2 billion are part of asset-backed securitizations. In addition to primary loan servicing, Concord also serves as a master/backup servicer for approximately 110,000 loans with combined balances of $2.25 billion.
For more information visit www.concordservicing.com

Categories: News

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Promotions within Avedon Capital Partners

Avedon

Mar 14, 2022

Amsterdam/Düsseldorf, March 14, 2022 – During 2021, Avedon has continued to make investments, worked on the value creation within our portfolio companies and developed the team. The strong development of the team resulted in five promotions as of January 1, 2022.

Avedon Capital Partners’ Michel Verhoog: “We are proud to announce the well-deserved promotions within the team as a reflection of excellent performance and strong potential for the future and look forward working together as one team, operating from two offices.”

Ben von Schulz, Philip Fischer and Willem van de Veer are promoted to Investment Director. Leo Hartwich and Sebastian van den Berg are promoted to Investment Manager.

Ben von Schulz joined Avedon in 2016 and re-joined in 2020 after a year at ECM Equity Capital. Prior, ben worked at the Debt Advisory Group of DC Advisory and at the Investment Banking Division of Canaccord Genuity. Ben holds a Master of Global Management from Queen’s University, Canada and a M.Sc. in Finance from Maastricht University.
Ben leads the Software & Technology sector team in Düsseldorf and is actively involved in portfolio company Altendorf.

 

Philip Fischer joined Avedon’s Düsseldorf office in 2019. Previously, Philip led the minority investment activities of SevenVentures. He started his career at J.P. Morgan’s Investment Banking Division in London. Philip holds a BSc in General Management and Business Law from European Business School, Oestrich-Winkel, Germany and further studied at the National University of Singapore.

Philip leads the Consumer & Health sector team in Düsseldorf. His active portfolio company is Hauck.

 

Willem van de Veer joined Avedon Amsterdam in 2019. He previously worked for 3 years at Volpi Capital, a London-based private equity firm focused on tech-enabled services. Prior to this he spent almost 4 years at Gupta Strategists, the leading healthcare strategy consultancy. Before, he was a medical doctor practicing Surgery in Amsterdam. Willem holds a medical degree and PhD in molecular biology from the VU University Amsterdam, and an MBA from London Business School. 

Willem is part of the Business Services team and is actively involved in portfolio companies Wastevision and Delvest.

 

Leo Hartwich joined Avedon in 2018 following an internship and is now part of the Düsseldorf office. Before that, he worked in the Finance & Treasury department of Adidas Group for two and a half years and gained experience in the Corporate Finance department of Fresenius SE. Leo holds a Master of Finance (M.Sc.) from the Frankfurt School of Finance and Management.

Leo is part of the Software & Technology team and is actively involved in portfolio company Delabo.

 

Sebastian van den Berg joined the Avedon team in Amsterdam in 2020. Prior, he worked as an Associate in the Consumer, Retail & Healthcare – and the Financial Institutions Group at Goldman Sachs. Sebastian holds a MSc in Quantitative Finance from the Erasmus University Rotterdam.

Sebastian is part of the Business Services sector team. His active portfolio companies are: Pro Industry and CCS.

 

Avedon is an independent investment firm comprising 18 investment professionals, with offices in Amsterdam and Düsseldorf. Avedon provides growth capital and expertise to medium-sized companies with a leading position in their sectors. Avedon focuses on niches within the following four sectors: (i) software & technology, (ii) smart industries, (iii) business services and (iv) consumer & health. We like to work with strong and committed management teams that have distinctive and ambitious growth plans. Since 2003, Avedon’s team has partnered with >40 platforms achieving their growth ambitions.

Categories: People

Diakrit and Virtuance join forces to deliver a new standard in real estate marketing, backed by Adelis as their international growth partner

Adelis Equity

Diakrit, the leader in digital property marketing content, has partnered with Adelis Equity Partners (“Adelis”) to accelerate the company’s international growth. As a first step, Virtuance, Diakrit’s main counterpart in the US market, has joined the group, creating an even stronger global leader with a best-in-class offering across three continents. Management and founders will continue to hold a significant ownership, together with Adelis.

With over 20 years of global experience, Diakrit helps leading real estate brokerages across the world successfully win more business and grow their brand through high-quality property marketing content including magazine-quality photography, 2D and 3D floor plans, 360-virtual tours, digital renovating and decorating tools and video.

Currently servicing over 2,000 leading real estate brokerages in Sweden, Norway, Denmark, Australia, New Zealand, and the US, Diakrit has established a unique and highly attractive position in their markets. This success results from the company’s cutting-edge technology, efficient automation and scalable operations, enabling Diakrit to deliver an unrivaled real estate experience that generates superior results for real estate brokers, homeowners and buyers alike.

“We researched the entire ecosystem of similar services in the Nordics, Europe and the US, resulting in an extensive analysis that made Diakrit stand out as a clear leader on a fast track to continued international growth. We were impressed by Diakrit’s highly experienced management, innovative technology and infrastructure, as well as the company’s world-class customer service,” says Joel Russ at Adelis.

“Diakrit was seeking a partner to help accelerate our international growth and support the company’s continued development. We are pleased to have partnered together with Adelis and look forward to developing Diakrit into an even stronger global market leader. Virtuance will play a key role in this journey by expanding Diakrit’s US presence and further strengthening our technology platform,” says Ken Brown, CEO of Diakrit.

Since its inception in 2010, US-based Virtuance has become a leading real estate photography provider with nationwide coverage. Powered by advanced AI-image processing algorithms, Virtuance automates key visualizations and marketing processes for its customer base of over 45,000 real estate professionals in the US.

“Like Virtuance, Diakrit is a forward-thinking, innovative and customer-focused business. We see this as a great opportunity to leverage the combined experience, systems, processes and digital property marketing content of the group to take Virtuance to the next level in the US and globally,” says Jeff Corn, CEO of Virtuance.

Joel Russ at Adelis adds: “By joining forces with Virtuance and leveraging their advanced AI-image processing algorithms and US market presence, we see great potential for a continued roll-out of an exceptional offering, as well as an expansion into adjacent services for Diakrit.”

Together, the parties will continue to invest in an ambitious growth strategy by consolidating and growing market share organically across existing markets. The group will also continue to focus on their residential resale offering and further accelerate its dominance in each market through strategic acquisitions.

AQ Technology Partners acted as the Exclusive Financial Advisor to Diakrit in the transaction.

For further information:

Joel Russ, Adelis Equity Partners, joel.russ@adelisequity.com

John-Matias Uuttana, Adelis Equity Partners, john-matias.uuttana@adelisequity.com

Ken Brown, CEO, Diakrit, ken.brown@diakrit.com

Jeff Corn, CEO, Virtuance, jeff.corn@virtuance.com

About Diakrit

With over 20 years of experience globally, Diakrit provides real estate brokers with a strategic advantage in their markets. Founded in Sweden, Diakrit is proud to work with over 2,000 leading real estate brokerages across the world and help them successfully win more business and grow their brand through high-quality marketing content including magazine-quality photography, 2D and 3D floor plans, virtual tours, digital renovating and decorating tools, and video. Diakrit also provides social media advertising – coupling optimized and targeted campaigns with engaging marketing content. The social media ads ensure more people see the broker’s listing online and keeps their brand top-of-mind for anyone thinking of buying or selling in their market. For more information, please visit www.diakrit.com.

About Virtuance

Virtuance is a leading real estate visual marketing company founded in 2010 and the creator of HDReal®, an industry leading AI-powered image processing system. Virtuance automates key processes in real estate marketing, enabling real estate professionals to improve marketing effectiveness, differentiate their brand and drive results for their clients. For more information, please visit www.virtuance.com.

About Adelis Equity Partners

Adelis is a growth partner for well-positioned companies. Adelis partners with management and/or owners to build businesses in growth segments and with strong market positions. Since raising its first fund in 2013, Adelis has been one of the most active investors in the Nordic middle-market, making 31 platform investments and more than 130 add-on acquisitions. Adelis today manages approximately €2 billion in capital. For more information, please visit www.adelisequity.com.

Categories: News

Alixio, the French leader in business transformation with significant human implications, joins forces with Ardian to accelerate its development

Ardian

 

Ardian, a world-leading private investment house, and the shareholders of Alixio have entered into exclusive negotiations with a view to Ardian acquiring a stake in the company’s capital.

Alixio, which is founded and chaired by Raymond Soubie, is the French leader in supporting companies with transformations having significant human implications. Its combined expertise in strategic consulting and operational services in human resources has made Alixio the partner of choice for a large range of small and medium-sized companies and public organizations.

With Ardian as a partner, Alixio aims to continue the strong growth that it has achieved since its creation (both organic and through targeted acquisitions), to consolidate its leadership in relevant markets and to expand its portfolio of businesses in value-add activities.

The acquisition will not change the operational governance structure of Alixio, which will remain chaired by Raymond Soubie. Philippe Vivien and Guillaume Allais will retain their respective positions as Vice President and General Manager.

The transaction is subject to a consultation process with the employee representative bodies of the entities concerned, as well as the approval of the French competition authority.

“Over the past ten years, Alixio’s partners and teams have been able to establish privileged relationships with our clients, understand their new challenges, translate them into organizational and human projects, and support them throughout their implementation. I am delighted to find in Ardian an ideal partner for the next stage of Alixio’s development; its cross-functional experience and international footprint will be strong assets for attracting new talent, supporting growth, acquiring skills or platforms for expansion in a world where changes are multiplying and intensifying every day.” Raymond Soubie, President and Founder of Alixio

“We are very pleased to support Alixio in the next stages of its development. Raymond Soubie has surrounded himself with a high-quality team, which has enabled the company to become the undisputed French leader in supporting companies in transformation. Knowing how to attract and manage talent is more important than ever and a key measure of success for companies. Our international network and know-how will enable us to accompany Alixio into a new phase of growth, both organically and through build-ups.” François Jerphagnon, Head of Ardian Expansion

 

ABOUT ALIXIO

Founded in 2010 by Raymond Soubie and several associates, Alixio, the French leader in supporting companies in their transformations with high human stakes, now employs nearly 750 people and has a turnover of 120 million euros in 2021. Its offer, which is based on a unique model combining consulting and services, covers five areas of expertise:

• Restructuring and social strategy
• HR performance and skills development
• Training
• Change Management and organization
• Health at work and QWL

https://www.alixio.fr/

 

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$125bn 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 850 employees working from fifteen 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 and Seoul). It manages funds on behalf of more than 1,200 clients through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.

https://www.ardian.com

PARTIES TO THE TRANSACTION

  • ARDIAN

    • MARIE ARNAUD-BATTANDIER, STÉPHAN TORRA, STEVEN BARROIS, LESLIE PARMAST, PAOLA ISMAIL
    • LEGAL ADVISORS: PAUL HASTINGS (OLIVIER DEREN, SÉBASTIEN CREPY, VINCENT NACINOVIC, ALLARD DE WAAL, THOMAS PULCINI, ALBAN CASTAREDE)
    • STRATEGIC DUE DILIGENCE: MCKINSEY & COMPANY (ALEXANDRE MÉNARD, CHARLES-HENRI RANNOU, BENJAMIN HOUSSARD, ELÉONORE DEPARDON)
    • FINANCIAL DUE DILIGENCE: EY (FRANÇOIS ESTIN, ELSA ABOU MRAD)
    • LEGAL, TAX AND LABOR DUE DILIGENCE: EY (JEAN-CHRISTOPHE SABOURIN, ANNE-ELISABETH COMBES, LIONEL BENANT, NEVENNA TODOROVA)
    • INSURANCE DUE DILIGENCE: FINAXY (DÉBORAH HAUCHEMAILLE)

  • ALIXIO

    • FINANCIAL ADVISORS: FABRICE MARTINEAU, DC ADVISORY (JEAN-CHRISTOPHE KAWAISHI, SOUFIANE DAOUIL, EMERIC MASUREL)
    • LEGAL ADVISORS: LAWWAYS (HORTENSE ROUVIER, LAURA PALLAVICINI)
    • MANAGEMENT ADVISORS: DELABY & DORISON (EMMANUEL DELABY), GCA (ALEXANDRE GAUDIN, GUILLAUME OGER)
    • STRATEGIC DUE DILIGENCE: INDEFI (JULIEN BERGER, MEHDI BELEFQIH)
    • FINANCIAL DUE DILIGENCE: EIGHT ADVISORY (ERIC DEMUYT, MATHIEU MORISOT, FRANÇOIS THOUMIE)
    • TAX DUE DILIGENCE: EIGHT ADVISORY (GUILLAUME REMBRY, HUBERT CHRISTOPHE, PRISCILLE BAIZEAU)

MEDIA CONTACTS

ALIXIO

MURIEL GREMILLET

muriel.gremillet@alixio.fr06 15 24 65 15

ARDIAN

HEADLAND

ardian@headlandconsultancy.com NLOAD PDF

 

Categories: News

Audax Private Equity Completes the Sale of Stonewall Kitchen to TA Associates

Audax Group

Audax Private Equity (“Audax”) today announced that it has completed the sale of Stonewall Kitchen (“Stonewall” or the “Company”), a leading provider of branded specialty food and home good products, to TA Associates.

Stonewall Kitchen

Established in 1991 and headquartered in York, Maine, Stonewall Kitchen serves its specialty food and home goods products to more than 8,500 wholesale accounts nationwide and internationally. In addition, Stonewall operates eleven retail locations throughout New England and provides its products through catalogs and an industry-leading direct-to-consumer website.

Since being acquired by Audax in 2019, Stonewall Kitchen has undergone a period of substantial transformation, growth, and success, including:

  • Bolstering the M&A platform with five add-on acquisitions, including Vermont Village®, Village Candle®, Urban Accents®, Vermont Coffee Company® and Michel Design Works®;
  • Expanding the Company’s product offerings in high-growth home goods segment; and
  • Driving significant growth across wholesale, branded retail and direct-to-consumer channels, including developing and launching a new corporate website and driving online cross-selling between acquired brands.

Jay Mitchell, Managing Director at Audax, said, “Stonewall is an iconic brand, and we were honored to partner with John Stiker and the entire Stonewall management team to help grow the business. Between add-on acquisitions and organic growth, the Company more than tripled in size over the past three years. We have enjoyed each and every day of our partnership with the entire Stonewall Kitchen team, and we look forward to following the Company’s continued success for many years to come.”

“Since day one, Audax has been aligned with and supportive of our growth strategy, mission, and core values,” said John Stiker, CEO of Stonewall Kitchen. “One of the reasons we were excited to partner with Audax was their focus on the Buy & Build strategy. We have transformed the Company from a primarily standalone brand to a family of brands within specialty food and home goods. We are grateful for the genuine partnership that our team had with Audax. It complemented our vision, helped us expand our capabilities and offerings, and took the Company to levels we could not have foreseen just a few years ago.”

Harris Williams is serving as lead financial advisor and Robert W. Baird is serving as a co-advisor. Kirkland & Ellis and Fredrikson & Byron P.A. are serving as legal advisors to Audax Private Equity.

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CVC Capital Partners Fund VIII to acquire RGI from Corsair

CVC Capital Partners

10 Mar 2022

Leading independent provider of insurance software solutions serves six of Europe’s 10 largest insurers

CVC today announced that CVC Capital Partners Fund VIII has agreed to acquire RGI (the “Company”), a leading independent provider of software solutions to the European insurance industry, from Corsair, a leading private equity firm targeting services, software, and payments investments in the financial services market. Terms of the transaction were not disclosed.

RGI provides insurers with a comprehensive and modular offering that addresses the entire insurance value chain, covering processes such as policy administration, claims, analytics, market management, reporting and sales, and distribution. RGI provides a wide range of cloud- software solutions serving Property & Casualty and Life insurance clients across Europe, with leadership positions in Italy, France, and Germany. The Company has an international, blue-chip customer portfolio covering insurance and corporate clients of all tiers, including six of the top ten European insurers.

Under Corsair’s ownership, RGI has realised significant organic and inorganic growth – including substantial progress in its shift to a SaaS-based offering as well as the 2019 acquisitions of Novum and Unimatica and the 2021 acquisition of Flexperto – evolving from a strong national player to a pan-European leader. CVC will support RGI’s management team in its future growth plans, which include further consolidating the fragmented insurance software industry and investing in the Company’s product offering and transition to a cloud-based platform.

“RGI is an outstanding company with an industry-leading technology platform and strong sector position. We are excited to be part of the Company’s journey going forward,” said Leif Lindbäck, Partner and Head of European TMT at CVC. “Having followed RGI for several years, we have been impressed by the growth that Cécile and her management team have achieved, transforming the Company into a pan-European insurance software leader.”

Giorgio De Palma, Partner at CVC Italy, added: “RGI is well-placed for further expansion, our vision for the future of the Company is fully aligned with the management team and we look forward to partnering with them to accelerate RGI’s growth and fully capture the significant market opportunity in Europe.”

Cécile André Leruste, RGI Group CEO, commented, “CVC has a wealth of experience and an impressive track record helping companies accelerate their growth. We’re delighted to have found another team whose values are aligned with our own and who are committed to our future as a leader in the digitisation of the European insurance market. On behalf of everyone at RGI, we’d like to thank Corsair for their invaluable guidance and support as we transformed our business under their stewardship.”

Raja Hadji-Touma and Edward Wertheim, Partner and Managing Director at Corsair, respectively, said, “This transaction is a reflection of RGI’s successful execution of its strategy to become a pan-European leader in insurance software, and the meaningful traction the Company has made in transitioning to a SaaS-based operating model with a comprehensive, industry-leading offering. We are grateful for our successful partnership with RGI and the many dedicated colleagues who have helped build an outstanding business that provides a full range of best-in-class and mission-critical solutions across the entire insurance value chain. We are confident the Company is in good hands and has a bright future with CVC.”

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Cinven agrees to acquire Bayer Environmental Science Professional

Cinven

International private equity firm Cinven today announces that it has signed an agreement with Bayer AG (ETR: BAYN) to acquire its Environmental Science Professional business for a total enterprise value of $2.6 billion (~€2.4 billion).

Bayer Environmental Science Professional (BESP) is a leading global provider of products and services to create healthier environments, to manage pests, and to eliminate vector-borne diseases, across a range of end-markets. BESP has an extensive product portfolio to manage pests (such as rodents, pest insects and invasive weeds) in a sustainable and responsible manner, including for the vegetation management, range and pasture, forestry and turf and ornamentals markets. In addition, BESP markets products to protect against vector-borne diseases such as malaria, and to promote public health objectives in the developing world.

Headquartered in Cary, North Carolina, USA, BESP has global operations with c. 800 employees and c. 2,000 product registrations, sold in more than 100 countries. BESP also has market-leading R&D capabilities, with four international R&D centres and more than 200 employees working in product innovation.

Cinven has longstanding relationships with large corporates in the Industrials sector, particularly in Germany and the DACH region, and an extensive track record of carving out businesses responsibly for all stakeholders, allowing Cinven to identify attractive opportunities and create new successful standalone companies.

Cinven’s Industrials Sector and DACH teams see BESP as an attractive investment opportunity, given the business’:

  • Resilient, growing and diversified end-markets, addressing an increasing societal demand for pest control and healthier, disease-free environments driven by higher living standards, urbanisation and climate change;
  • Leading market positions, underpinned by its strong science-led R&D capabilities, regulatory and Intellectual Property (‘IP’) protections;
  • Strong brands with an opportunity to accelerate organic growth through expansion into new geographies and new market segments;
  • Product portfolio with clear social and environmental benefits, consistent with the focus of Cinven’s ESG strategy, including products for improving public health outcomes, fighting vector-borne disease, controlling pest infestations, and reducing wildfire risks;
  • Longstanding relationships with professional customers, supported by its leading technical service capabilities;
  • Significant growth opportunities through further investment in R&D and in-licensing external IP to develop new sustainable products for pest management, including biological and digital technologies;
  • Consolidation opportunities in the fragmented specialty pest management sector through buy and build M&A; and
  • Experienced international leadership team, led by CEO Gilles Galliou, with responsibility for a highly qualified, high-performing global employee base.

Pontus Pettersson, Partner at Cinven, commented:

“Cinven is delighted by the opportunity to invest in Bayer Environmental Science Professional, a global leader in specialty pest management that serves critical needs for society across a broad range of end-markets. Cinven is excited to build an independent, focused company, and to extend BESP’s product portfolio further by creating innovative and sustainable solutions for its customers.

“Following Cinven’s recent acquisitions of TK Elevator and Arxada, Cinven is confirmed as a preferred partner for large European corporates on significant disposals, especially within the Industrials sector. Bayer has been an exemplary custodian of the business, and we look forward to continued close collaboration between BESP and Bayer.”

Anthony Cardona, Partner at Cinven, added:

“Bayer Environmental Science Professional enjoys strong positions in multiple markets across the world, driven by its best-in-class scientific and regulatory teams, well regarded brands, and leading technical service capabilities. Cinven has been impressed by the quality of the team and operations, and this transaction should create significant opportunities across the business.

“Cinven shares management’s ambitious growth agenda and views BESP as a platform investment, with scope to grow the business significantly and broaden its product portfolio through acquisitions and strategic partnerships.”

Gilles Galliou, CEO of BESP, added:

“Everything we do at Environmental Science Professional is guided by our vision of healthy environments for everyone everywhere. Cinven clearly shares this vision for our organisation and Cinven has demonstrated that it is committed to the long-term success of our business and would be a great home for our employees.

“With the support and backing of Cinven, I am thrilled for the opportunity for Environmental Science Professional to become even more growth-oriented, with a full focus on advancing innovations that meet the unique and evolving needs of our customers around the world.”

Cinven is one of the leading investors in carve-outs from Industrial companies in Europe. The Cinven funds’ investment in BESP, acquired from the German-listed Bayer AG, builds on its recent experience of carving out TK Elevator from thyssenkrupp AG and Arxada (formerly Lonza Specialty Ingredients) from Lonza Group AG.

Cinven is also one of the most active and successful investors in Germany and the wider DACH region. Other recent investments of Cinven funds in Germany include STADA, Synlab, think-cell and Viridium.

Cinven is a responsible, ESG-focused investor, and committed to maintaining the environmental, regulatory and employee stakeholder responsibilities of BESP. Under the Cinven funds’ ownership, BESP will remain an important partner of Bayer AG and will collaborate closely with Bayer going forward in several areas.

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New Stack closes $42.6M Fund II

New Stack Ventures
March 10, 2022 · New Stack

Today we are announcing the closing of our newest fund — New Stack Ventures Fund II — a $42.6M fund supporting exceptional founders from outside the typical VC-Backed profile and pedigree. Following our first fund of $6M in 2018, our new fund allows us the freedom to invest in an additional 35 companies across the spectrum of Pre-Seed and Seed.

The New Stack Team: Austin Ju, Nate Pierotti, Nick Moran, Zeke Trezise, J.R. Moran

As covered first by TechCrunch, Fund II is continuation of our mission to break traditional tech stereotypes and provide greater transparency to the capital raising process. It’s been a long road. As G.P. Nick Moran recounts to TechCrunch:

A lot of ingredients have to come together for it to work — a founder network, a talent network and a capital network. Raising the first fund, the thesis of investing in outsiders and the middle of the country was a difficult task. We just closed the second raise, and the thesis landed, and we have 100 investors and people who are motivated and excited. We think the bigger story is the migration of Midwesterners back to the Midwest who had to locate in the Bay Area for work. That has been a huge tailwind for us.

We are proud to now be one of the largest single-partner U.S. funds ever raised between the coasts, but we’re not done yet. We’re hiring and growing our team. If you’d like to join us on this journey of backing founders outside of the typical Silicon Valley profile, please feel free to reach out to us. We’re Team@newstack.vc.

For more on our philosophy and the startups we choose to invest in, visit our website or check out the Full Ratchet Podcast or read more about us in the news below.

“Early-stage venture fund New Stack Ventures just raised $42.6 million for its second fund aimed at injecting capital into founders that don’t come from the educational pedigree or location that we typically see with entrepreneurs…”

 

Categories: News