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Arsenal Capital Partners Acquires Innovative Products & Equipment as its Second Investment to Build Leading Automation Solution Business

Arsenal Capital Partners

Expands Automation Capabilities in Medical Device and Life Sciences

August 23, 2022

New York, NY- Arsenal Capital Partners (“Arsenal”), a private equity firm that specializes in investments in industrial growth and healthcare companies, today announced that it has completed an investment in Innovative Products & Equipment, Inc. (“Innovative”), which it will combine with Eckhart, Inc. (“Eckhart”) to build a leading automation solutions provider serving highly complex applications in high-growth end markets. The terms of the Innovative acquisition were not disclosed.

Innovative, an automation solutions provider which focuses on the medical device and life sciences markets, represents Arsenal’s second investment in the automation sector, following the acquisition of Eckhart in December 2021. Together, Innovative and Eckhart will provide specialized automation solutions, including Factory of the Future (design simulation) services, single & multi-cell automation systems, and fully automated assembly lines, as well as automation technologies, including Autonomous Guided Vehicles (“AGVs”), Autonomous Mobile Robots (“AMRs”), thermal bonders, servo presses, and semi-automated tooling.

“We are excited to work with the Innovative team to enhance our delivery of advanced, end-to-end automation capabilities for our customers,” said Andy Storm, CEO of Eckhart. “Rich, Eric, Dale, Kevin and the rest of the Innovative team have developed a reputation in the medical device and life sciences markets for solving mission-critical issues for their customers, and we believe joining forces will position us well for our next phase of growth.”

Rich Brownstein, Principal and Co-President of Innovative, stated, “We are thrilled to partner with Arsenal, Andy, and the Eckhart team. The scale, capabilities, and resources that we can provide as a combined company will allow us to strategically accelerate growth as we support our global customer base with higher productivity, efficiency, and precision. Arsenal’s reputation and experience investing in innovation-forward industrial technology and healthcare companies gives us confidence in the future growth prospects of our industry and company.”

Sal Gagliardo, an Operating Partner of Arsenal, added, “Innovative is the latest example of our commitment to invest significant capital behind the substantial growth in automation and expand our presence in attractive, specialized end markets, such as medical device and life sciences.”

SVB Securities served as exclusive financial advisor and Ruberto, Israel & Weiner P.C. served as legal advisor to Innovative on this transaction.

Harris Williams LLC served as financial advisor and Kirkland & Ellis LLP served as legal advisor to Arsenal and Eckhart.

About Innovative Products & Equipment
Founded in 1980 and headquartered in Hudson, New Hampshire, Innovative provides complex automation and product & process development solutions to blue-chip customers in specialized markets, with a focus on medical device and life sciences. Innovative’s technologies and solutions include automated assembly and test systems, machine vision solutions, integrated robotics, and engineering services. For additional information, please visit www.ipeinc.com.

About Eckhart
Eckhart, based in Warren, Michigan, designs, builds, and sustains advanced industrial solutions used to solve complex manufacturing needs. Eckhart’s proven portfolio of Industry 4.0 technology includes autonomous guided vehicles (AGVs), collaborative robot systems, traditional robotics, assembly automation & simulation, 3D printing tool development & production, and Factory of the Future consulting for the world’s largest manufacturers. For more information, please visit www.eckhartusa.com.

Contact for Arsenal:
Jackie Schofield at Prosek Partners
Pro-Arsenal@prosek.com

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Latour acquires ABC Ventilationsprodukter

Latour logo
2022-08-22 13:00

Investment AB Latour has, through its wholly-owned subsidiary Swegon Group AB, signed an agreement to acquire ABC Ventilationsprodukter. The company was founded in 1976 and has 90 employees with head office and manufacturing located in Borås, Sweden, and a turnover of about SEK 140 m.

By the acquisition, Swegon strengthens its position as one of the leaders within ventilation products in the Nordics.  ABC Ventilationsprodukter will complement Swegon’s existing portfolio by broadening the product range to include products such as roof hoods, louvres, and fire and smoke products. In addition, the company has a clear focus on climate- and energy efficient products.

“We have a long history of collaboration with ABC Ventilationsprodukter and are now pleased to welcome them to the Swegon family. With their complementary product portfolio as well as their expertise, ABC Ventilationsprodukter will be a great addition to our complete indoor climate system that will strengthen our position on the market even further”, says Andreas Örje Wellstam, CEO at Swegon Group.

“We are excited to see how our long partnership, where we share the long-term business perspective and have similar company values, now enters a new phase where we after several years of investment in our production and development are ready to take the next step in accelerating our business growth”, says Ingemar Carlsson, founder of ABC Ventilationsprodukter.

As an effect of the acquisition the net debt of the Latour Group increases with about SEK 0.1 billion.

Göteborg, 22 August, 2022

INVESTMENT AB LATOUR (PUBL)
Johan Hjertonsson, CEO

For further information, please contact:
Andreas Örje Wellstam, CEO Swegon +46 31 89 58 00
Rebecca Palm Ballesta, Corporate Development Swegon +46 31 89 58 00

Swegon Group is a market leading supplier in the field of indoor environment, offering solutions for ventilation, heating, cooling and climate optimisation, as well as connected services and expert technical support. Swegon has subsidiaries in and distributors all over the world and 17 production plants in Europe, North America and India. The company employs more than 2 600 people and a turnover of SEK 6 billion.

Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listing holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of ten substantial holdings with a market value of about SEK 72 billion. The wholly-owned industrial operations has an annual turnover of SEK 19 billion.

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Cottonwood recruited Sabine Bijker for Corporate & Investor Relations

Cottonwood Technology Fund gladly like to announce a new hire: Sabine Bijker joined the team and will be responsible within Cottonwood for Corporate & Investor Relations and Finance.

With corporate investors from USA to Taiwan and personal relationships with corporates all over the world Cottonwood Technology Fund has a unique approach which brings a lot of added value to our portfolio companies. “So, investing in a role for corporate and investor relations will help contributing to our success.”, said Alain le Loux.

Sabine Bijker: “I am delighted to have been selected and happy to join Cottonwood Technology Fund. I’m impressed by the portfolio companies and the dynamics within Cottonwood during the first working days. I hope to be able to contribute to the success of Cottonwood’s impact investments in deeptech”.

Sabine will join Cottonwood’s Startup Festival on the 15th of September in Groningen and support hosting the Cottonwood LP-days on 7th and 8th of October.

Categories: People

CVC Credit supports Astorg’s acquisition of OPEN Health

CVC Capital Partners

CVC Credit is pleased to announce that it has co-arranged the debt facilities to support leading global private markets firm Astorg, in its acquisition of OPEN Health, a leading global provider of scientific communications and market access services to the pharmaceutical industry.

Established in 2011 and with more than 1,000 employees in 15 locations and six countries, OPEN Health provides best-in-class scientific communications, health economics and outcomes research and market access services for more than 170 life sciences customers. Driven by new specialty drug launches and increased outsourcing by pharmaceutical companies, OPEN Health’s large addressable market is forecast to grow at 9-10% p.a. between 2021 and 2025 and enjoys high barriers to entry with large pharma companies looking for credible partners with long track records. OPEN Health is highly cash generative and has a track record of capitalising on cross-selling opportunities across its sticky customer base.

Quotes

OPEN Health is a great business, with significant sector experience, a high-quality management team and a blue chip customer base

Moris Nachmias Director, CVC Credit

Moris Nachmias, Director at CVC Credit, commented: “OPEN Health is a great business, with significant sector experience, a high-quality management team and a blue chip customer base. We are confident that Astorg, with its market expertise, will be the perfect partner to accelerate growth at OPEN Health and continue to build on the company’s successful track record of innovation.”

Andrew Davies, Partner and Co-Head of Private Credit at CVC Credit added: “I am delighted that we were able to secure our position as a partner for this opportunity. Our aim is always to partner with top-quality sponsors and back strong, stable businesses, and this is certainly the case with OPEN Health.”

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KKR Leads Investment in Arevia Power

KKR

Financing accelerates development of new solar and wind projects in the United States

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced that KKR has led a significant structured investment in Arevia Power (“Arevia” or the “Company”), a U.S. renewable energy developer, with strategic participation by GCM Grosvenor, a leading global alternative asset management solutions provider. The investment will support the Company’s accelerated growth and development of new solar and wind projects throughout the United States.

Founded in 2015, Arevia is a dedicated solar and wind project developer that originates, permits, and manages renewable energy projects through their lifecycle. Currently, Arevia is advancing a multi-gigawatt (“GW”) portfolio of early-stage projects across the country. Arevia’s projects are responsibly sited and aim to meet local and regional energy demand with a focus on mitigating environmental impacts and minimizing impacts to surrounding communities. Arevia’s founders, industry veterans Mark Boyadjian and Ricardo Graf, have a demonstrated track record of success, having fully developed over 2 GW of utility-scale solar photovoltaic infrastructure.

In tandem with the investment, Arevia has executed a Responsible Contractor Policy (“RCP”) for its entire clean energy portfolio throughout the United States. The RCP actively promotes a highly skilled workforce with a strong commitment to health and safety on the job, fair wages, and benefits, and future workforce development.

“Now is a critical time for the energy transition, and we are elated by this milestone that gives us the flexible capital needed and the right partners to expand our solar and wind project pipeline throughout the country in a thoughtful way.” said Mr. Boyadjian, Managing Partner at Arevia. “KKR is an outstanding new strategic partner with deep renewables and infrastructure experience, and GCM Grosvenor is an equally accomplished infrastructure investor who has also been particularly successful in investing in partnership with organized labor groups. Together, this platform investment and new relationship with two world-class investment firms will super-charge our development of clean energy solutions while delivering good-paying jobs and leading the way on responsible development.”

“We’re thrilled to build on our strategy of investing behind premier developers like Arevia as the need and demand for renewable energy rapidly accelerates,” said Samuel Mencoff, a Director on KKR’s asset-based finance team. “Arevia’s experience successfully executing critical development projects and deep network position it at the forefront of the industry amid strong economic and public policy tailwinds. We look forward to supporting the company in its efforts to shift toward cleaner sources of energy supply.”

“With our investment, we are helping Arevia pursue its mission to drive change by building large-scale renewable infrastructure projects,” said Akhil Unni, Managing Director at GCM Grosvenor. “Not only are we putting capital to work in a way that helps support environmental sustainability and meet applicable renewable portfolio standards, but we are also proud of Arevia’s commitment to an organized skilled workforce.”

Since 2011, KKR and its subsidiaries have deployed over $15 billion in equity to invest in renewable assets, such as solar and wind, which have an operational power generation capacity of over 23 GW, as of December 31, 2021. KKR is making its investment in Arevia from its managed insurance accounts. The investment from GCM Grosvenor will come from its infrastructure practice.

Willkie Farr & Gallagher LLP and Munish Dayal, Arevia’s outside general counsel, served as legal advisors to Arevia Power. Amis, Patel & Brewer LLP served as legal advisor to KKR and Allen & Overy served as legal advisor to GCM Grosvenor.

About Arevia Power

Founded in 2015, Arevia Power is an independent U.S. utility-scale solar and wind developer. Arevia’s founders have originated over 12GW of greenfield renewable assets primarily on federal and state lands throughout the U.S. Arevia Power was responsible for originating, NEPA permitting, power-contracting, and leading the development of the Gemini Solar + Storage Project between February 2017 and May 2021. Arevia’s core competency is early and often stakeholder collaboration to create mutually beneficial solutions, engendering community trust. Arevia maintains unique value through an explicit focus on transmission and land.

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 GCM Grosvenor

GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $71 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform. GCM Grosvenor’s experienced team of over 510 professionals serves a global client base of institutional and high net worth investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, and Seoul. For more information, visit: gcmgrosvenor.com.

Media Contacts
For Arevia:
Matthew Driscoll
Communications Director, R&R Partners
Matthew.Driscoll@RRPartners.com
M:610-416-9115

For KKR:
Miles Radcliffe-Trenner
212-750-8300
media@kkr.com

For GCM Grosvenor:
Tom Johnson and Will Braun
Abernathy MacGregor
tbj@abmac.com / whb@abmac.com
212-371-5999

Source: KKR

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Adelis Equity Partners raises Fund Continuation Vehicle for SSI Diagnostica Group, Enabling Transformational Acquisition

Adelis Equity

Adelis Equity Partners (“Adelis”) has raised a Fund Continuation Vehicle (“FCV”) to acquire SSI Diagnostica Group (“SSID”), a portfolio company of Adelis Equity Partners Fund I, alongside the company’s management and board, Adelis Equity Partners Fund III and the Adelis team. In connection with the transaction, SSID completed a transformational acquisition of TechLab Inc.

SSID, headquartered in Denmark, is a global in-vitro diagnostics company that has grown significantly since Adelis invested in the business in 2016 through innovation and new product development as well as strategic M&A. SSID joined forces with San Diego based CTK Biotech in 2020, significantly broadening the group’s rapid testing operations and expanding its geographic footprint beyond SSID’s strong position in Europe to also include emerging markets.

By now joining forces with the Virginia-based leading gastrointestinal diagnostics company TechLab, SSID broadens its infectious disease product offering further and lays the foundation for accelerated growth in the US.

The joint group will have combined annual sales of more than USD 160 million, more than six times the size of SSID when Adelis invested in the business in 2016.

“We believe rapid diagnostics and self-testing will continue to change healthcare. The restructuring of our ownership has enabled the acquisition of TechLab, but importantly also gives the group significant capital for further acquisitions and enables Adelis to continue to support the business for many more years” says Rasmus Molander at Adelis.

In the transaction, Adelis Equity Partners Fund I fully exits its investment in SSID to a consortium consisting of the FCV, Adelis’ latest flagship fund and affiliates, the company’s management and board, and the Adelis team.

The FCV, which is managed by Adelis, is backed by several institutional investors, including StepStone Group as the lead investor, and Los Angeles County Employees Retirement Association (“LACERA”) as junior lead.

Adelis was advised by Lazard, Akin Gump, Kromann Reumert, Vinge, White & Case, Gernandt & Danielsson, Troutman Pepper, Boston Consulting Group, and PWC on the transaction.

About Adelis Equity Partners

Adelis is a growth partner for well-positioned, Nordic 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 35 platform investments and more than 150 add-on acquisitions. Adelis today manages approximately €2.5 billion in capital. For more information, please visit www.adelisequity.com.

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Jesper Lien new CEO of Plantasjen Group

Ratos

Jesper Lien has been appointed as the new CEO of Plantasjen Group (“Plantasjen”) and will assume the role on 22 August 2022. Jesper most recently served as Chief Commercial Officer (CCO) of the company.  He has an extensive track record with broad experience from various senior positions at Nordic and European retail companies, including CEO of Coop Denmark and CCO of B&Q, the UK’s largest DIY chain.

“Plantasjen is in an exciting phase, and I am delighted that Jesper Lien has agreed to lead the company’s continued development. With his solid background in senior retail positions, Plantasjen is gaining an experienced CEO with a strong operational know-how,” says Anders Slettengren, Chairman of the Board of Plantasjen and President Business Area Consumer at Ratos.

“I’m very much looking forward to leading Plantasjen on its continued journey of growth. I am pleased to humbly accept this role as the company’s new CEO. Plantasjen’s vision is to be the most inspiring Nordic garden centre. This entails offering inspiration, expertise and tools to succeed in a growing life, ensuring customers choose us over the competition. We have made good progress, and I am optimistic about Plantasjen’s future. Now I look forward to shifting up a gear together with my colleagues,” says Jesper Lien, incoming CEO of Plantasjen.

Current CEO Nina Jönsson will be moving on to new challenges outside the Ratos Group.

“We would like to thank Nina Jönsson for her time as CEO of Plantasjen as well as the seven years she spent as CEO of various companies in the Ratos Group. She is a strong leader who has improved profitability while maintaining a focus on customers and employees. We wish her all the best in the future,” says Jonas Wiström, President and CEO of Ratos.

About Plantasjen
Plantasjen is the Nordic region’s leading retailer of plants and gardening accessories, with more than 128 stores in Norway, Sweden and Finland as well as online sales. The company has approximately 2,400 employees and sales of approximately SEK 4.5 billion for the rolling 12-month period ending 30 June 2022. Ratos acquired Plantasjen in 2016.

For further information, please contact
Anders Slettengren, Chairman of the Board of Plantasjen and President Business Area Consumer, Ratos, +46 72 589 89 00
Jesper Lien, incoming CEO, Plantasjen, +45 51 593 601
Josefine Uppling, VP Communication, Ratos, +46 76 114 54 21

About Ratos
Ratos is a business group consisting of 15 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2021, the companies have approximately SEK 26 billion in net sales. Our business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values: Simplicity, Speed in execution and It’s All About People. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.

Categories: People

Aurora Capital Partners Completes Sale of VLS Environmental Solutions, a leading sustainability solutions and ESG-focused waste services company in North America, to I Squared Capital

Aurora Capital

LOS ANGELES, Aug. 18, 2022 /PRNewswire/ — Aurora Capital Partners (“Aurora”), a leading middle-market private equity firm, announced today the closing of its previously announced sale of VLS Environmental Solutions (“VLS” or the “Company”) to I Squared Capital (“I Squared”), a leading global infrastructure investment manager. VLS provides mission-critical, customized waste and specialty cleaning and repair services to a variety of highly regulated industries in North America. Financial terms of the transaction were not disclosed.

VLS operates two principal segments: non-hazardous industrial waste handling, treatment, and sustainable disposal, as well as rail and marine specialty cleaning and repair. As one of the only nationwide providers of ESG-friendly industrial waste solutions, the Company’s sustainable disposal solutions are especially attractive for customers with zero-waste-to-landfill initiatives. The Company offers a comprehensive set of waste management solutions that process industrial non-hazardous waste to create alternative engineered fuels for industrial processes, fuel for waste-to-energy generation, treated wastewater, and landfill solidification.

“It has been exciting to work alongside the VLS team and help transform the Company from a Southeast-focused provider to a leading ESG-focused environmental solutions platform with nationwide scale and a broad-based environmental services offering,” said Matthew Laycock, Partner at Aurora. “VLS has grown tremendously since our partnership in 2017, including the completion of nine acquisitions to support our buy and build strategy, and there is significant runway to continue this strong performance across its business lines. We wish the Company, its management and its new partners continued success.”

“The entire VLS organization, led by John Magee, has done an excellent job leading the business through this phase of growth, and we appreciate their efforts throughout our partnership. They locked arms with us on Aurora’s Strategy & Operations Program and expanded across all areas of their platform: geographic reach, customer service offerings, and internal talent,” said Andrew Wilson, Partner at Aurora. “Given its unique service offering and strong customer value proposition, VLS is well-positioned to continue its growth within the broader environmental services industry.”

“Aurora has been an incredible partner to the leadership team at VLS, providing guidance and expertise to support the Company in achieving our growth objectives,” said John Magee, President and CEO of VLS. “We are thrilled to partner with the I Squared team and believe they are the right next owner to help drive the continued expansion of our market-leading environmental services platform.”

Houlihan Lokey served as lead financial advisor, Robert W. Baird served as co-financial advisor, and Gibson, Dunn & Crutcher LLP served as legal advisor to Aurora Capital Partners. Jefferies LLC served as exclusive financial advisor and Kirkland & Ellis LLP served as legal advisor to I Squared Capital.

About Aurora Capital Partners
Aurora Capital Partners is a leading Los Angeles-based private equity firm with over $4.5 billion in assets under management. Founded in 1991, the firm focuses principally on control investments in middle-market companies with leading market positions, stable industry dynamics, attractive business model characteristics and actionable opportunities for growth in partnership with management. Aurora provides unique resources to its portfolio companies through its Strategy & Operations Program and its team of experienced operating advisors. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing. For more information about Aurora Capital Partners, visit: www.auroracap.com.

About VLS Environmental Solutions
VLS’ Waste division provides customized waste processing solutions for non-hazardous industrial and commercial waste, including landfill diversion and sustainability programs, solidification of liquid waste, recycling, and wastewater treatment. The Company’s Railcar Cleaning division provides specialty cleaning services for difficult-to-clean products including chemicals, hardened materials and pressurized gases using the most environmentally friendly and safe processes in the industry. Also, the Company’s Marine division has state-of-the-art barge cleaning and repair facilities for a wide variety of petroleum and chemical solvents. Today, VLS has over 800 employees in 28 locations across the country. For more information about VLS, visit: www.vlses.com.

Contacts:

Aurora Capital Partners
ASC Advisors
Steve Bruce / Taylor Ingraham
+1 (203) 992-1230
sbruce@ascadvisors.com / tingraham@ascadvisors.com

SOURCE Aurora Capital Partners

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CVC Credit prices second new CLO in a month

CVC Capital Partners

CVC Credit is pleased to announce that it has priced Apidos XLI (41), a Collateralized Loan Obligation (“CLO”) fund totalling c.$500m, arranged by Société Générale. This is the fifth new issue CLO priced by CVC Credit’s transatlantic performing credit platform this year, which together have an aggregate value of over $2.4bn (c.€2.3bn).

Apidos XLI will increase CVC Credit’s global AUM to over $34 billion (€32 billion). The transaction has been structured with a five-year reinvestment period and was well received by both existing and new investors. As with previous Apidos funds, Apidos XLI is primarily comprised of broadly syndicated First Lien Senior Secured Loans.

Quotes

The successful pricing of Apidos XLI reflects our active pace of issuance across today’s global CLO markets and disciplined approach to investment.

Gretchen Bergstresser Partner and Global Head of Performing Credit at CVC Credit

Cary Ho, Partner and Global Head of CLO origination for Performing Credit at CVC Credit, said: “We are delighted to price our latest US CLO. We have continued to generate strong momentum and realise solid performance from our CLO issuance over the first half of 2022, even during a challenging market environment characterised by fluctuating spreads and increased market volatility.”

Gretchen Bergstresser, Partner and Global Head of Performing Credit at CVC Credit, added: “The successful pricing of Apidos XLI reflects our active pace of issuance across today’s global CLO markets and disciplined approach to investment. We appreciate the unwavering support shown by our investors and look forward to the exciting opportunities ahead for our global Performing Credit strategy.”

Categories: News

Guesty Raises $170 Million to Power the Next Generation of the Hospitality and Property Management Industry

Apax

The round will accelerate Guesty’s international business growth, fuel continued expansion into new verticals, and enhance its industry-leading property management technology and platform to meet the evolving needs of every type of hospitality operator

Guesty, the leading property management platform for the short-term rental and hospitality industry, today announced it has raised a $170 million funding round, led by the Apax Digital Funds, MSD Partners and Sixth Street Growth. Existing investors Viola Growth and Flashpoint also participated in the round. The Series E capital will be used to scale the company’s global operations to meet increasing demand, pioneer new solutions that support the growing needs of hospitality operators, secure key acquisitions, and expand into new business verticals to solidify Guesty’s position as the industry’s gold-standard property management platform.

“Despite an exceptionally challenging fundraising climate, the funding Guesty has raised is a vote of confidence in the travel and short-term rental ecosystem, and an endorsement of our pioneering technology and position as the market leaders of the hospitality and property management software sector,” said Guesty’s Co-founder & CEO, Amiad Soto. “As alternative accommodations surge in popularity, Guesty has come out a clear winner thanks to our commitment to prioritizing innovation and ability to help our customers become more successful. We thank our existing partners Apax – who are increasing their commitment to Guesty – and are excited to welcome aboard MSD Partners and Sixth Street, whose strong track records in our ecosystem make them ideal long-term partners. As we continue to expand globally and grow our market leadership, we look forward to providing hospitality managers with even more value in the coming months and years.”

Since the onset of the pandemic in early 2020, the short-term rental (STR) industry has grown exponentially, with travelers spending more than $200 billion on STR accommodations in 2021 alone. As the ways consumers choose to live, work, socialize and travel continue to shift, the lines between traditional hotels and rental accommodations have blurred. This trend has accelerated the need for versatile hospitality management technology as operators across the board adapt to new and elevated guest expectations. Guesty’s solution equips hospitality providers of all sizes and accommodation types with an all-encompassing platform to optimize and scale operations, manage and distribute inventory – along with the tools, data-driven insights and enhanced services to effectively respond to these market trends and empower them to succeed.

Customers use Guesty to centralize their reservations across all major booking channels, including Airbnb, Vrbo, Expedia and Booking.com. The platform automates and expedites guest communications, reviews, cleaning and other operational tasks, while also facilitating direct bookings, resource and revenue management, smooth payments systems, accounting and damage protection. With its large marketplace of third-party integration partners and its open API capabilities, the platform adapts to specific business and operational requirements, providing comprehensive and bespoke solutions that serve as a one-stop-shop covering all property management needs.

“As alternative property management operations become more complex, Guesty is paving the way for the next generation of digital hospitality services,” said Dave Evans, Partner at Apax Digital. “Their track record of success and innovation, along with their platform’s growing suite of tools and intuitive user experience has Guesty positioned to define and consolidate its category, working with hosting businesses of all sizes. We are excited to continue partnering with the company as it continues to transform the industry.”

“In a largely specialized and localized industry, there is a huge opportunity to bring a global standard of service and excellence to hospitality operators of all shapes and sizes,” said Dan Bitar, Managing Director and co-Head of MSD Growth. “Guesty’s robust product offerings, strong R&D team, and proven ability to scale the business across geographies make it the ideal platform to consolidate the currently fragmented market.”

“The tech-enabled real estate ecosystem continues to grow and mature, and we look forward to joining Guesty on its journey to democratize and further professionalize the property management space,” said Michael McGinn, Partner and Co-Head of Sixth Street Growth. “With Guesty’s strong management team, long-term vision, product innovation, and marquee customers and partners, we have full confidence in the company’s ability to further cement its leadership in the world of hospitality and property management.”

The latest funding round comes at an exciting time for Guesty, having tripled its valuation and doubled its revenues since its last raise. In 2021 and 2022, Guesty launched numerous new products, services and technology partnerships as part of its core platform – including advanced accounting tools, damage protection offerings and payment solutions tailored for property management of short-term rentals. The company’s sustained growth has it positioned to reach $100 million in revenues within the next year. Guesty previously acquired property management platform companies MyVR and YourPorter and plans further acquisitions in the near future.

J.P. Morgan Securities LLC acted as sole placement agent on the transaction.

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