Category Archives: News

Brookfield Raises $2.4 billion for Catalytic Transition Fund Supported by Anchor Commitment from ALTÉRRA

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Additional capital raised from CDPQ, GIC, Prudential and Temasek, among others

Targeting up to $5 billion, anchored by $1 billion catalytic capital investment by ALTÉRRA

Brookfield Asset Management (NYSE: BAM, TSX: BAM) (“Brookfield”) today announced an initial closing of $2.4 billion for the Catalytic Transition Fund (“CTF” or “the Fund”), marking a significant milestone towards the target of raising up to $5 billion for deployment towards clean energy and transition assets in emerging markets.

CTF was previously launched at COP28 with up to $1 billion of catalytic capital provided by ALTÉRRA funds (“ALTÉRRA”), the world’s largest private investment vehicle for climate finance based in the United Arab Emirates with the purpose of mobilizing investment at scale to finance a new climate economy. As it looks towards innovative approaches to catalyze capital for climate solutions in emerging markets, ALTÉRRA’s fund commitment has been designed to receive a capped return, thereby improving risk-adjusted returns for other investors in the Fund. Brookfield has committed to provide 10% of the Fund’s target to align itself with investment partners and investors.

Today, Brookfield is announcing four additional investment partners for CTF: CDPQ, GIC, Prudential and Temasek, among others. These leading institutional investors are important global players in transition investing and will be valued partners to Brookfield as CTF gets deployed in its target markets. CTF has now raised approximately half of the $5 billion total capital targeted for the Fund.

CTF is focused on deploying capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. This strategic partnership will help drive clean energy investment into emerging markets, where investment needs to increase sixfold over current levels to reach the $1.6 trillion required annually by the early 2030s in line with global net zero targets. The Fund benefits from ALTERRA’s push to significantly expand private finance and fuel ambitious new climate strategies, as well as Brookfield’s global leadership in clean energy and transition investing, building on over three decades of operational experience in renewable energy technologies and its track record as the world’s largest transition investor among alternative asset managers.

The Fund expects to announce its initial investments later in 2024, and a traditional first close – with additional capital from Brookfield’s ongoing fundraising efforts through its extensive network of institutional investors – is expected by early 2025.

H.E Majid Al-Suwaidi, CEO of ALTÉRRA, said:

“CTF demonstrates ALTÉRRA’s catalytic capital as a powerful multiplier of climate finance to the Global South. This early momentum around CTF shows strong global demand not just for climate strategies, but for opportunities to invest in climate solutions in emerging markets. ALTÉRRA looks forward to working with CDPQ, GIC, Prudential and Temasek and other partners who share our ambitions to redefine how the world invests in climate solutions and go beyond business-as-usual to deliver positive impact for both people and planet.”

Mark Carney, Chair and Head of Transition Investing at Brookfield Asset Management, said:

“These anchor commitments from CDPQ, GIC, Prudential and Temasek demonstrate significant momentum for the Catalytic Transition Fund. The support from the world’s most sophisticated investors for the CTF strategy underscores the unique combination of the major commercial opportunity and the climate imperative. We look forward to working with other like-minded investment partners to accelerate the transition in these critical and vastly underserved markets.”

Marc-André Blanchard, Executive Vice-President and Head of CDPQ Global and Global Head of Sustainability, said:

“Globally, around $6.5 trillion will be needed yearly for the energy transition over the next 15 years. It’s a staggering figure, and various partnerships and investments are necessary to accelerate the path forward. For CDPQ, the energy transition is key to creating lasting value. By investing in Brookfield’s Catalytic Transition Fund, we are supporting innovative approaches to mobilize capital for climate solutions in emerging markets, where investments are critical to tackle the global environmental challenge.”

Don Guo, Chief Investment Officer, Prudential plc, said:

“We believe there is an opportunity to drive scalable positive change in emerging markets through investing in the climate transition. Prudential’s investment in Brookfield’s Catalytic Transition Fund underscores our belief that responsible investment is not only an environmental imperative but also a significant opportunity for growth in emerging markets. By supporting a just and inclusive transition, we enable the benefits of sustainable development to be shared widely, contributing to social equity and long-term prosperity.”

Notice to Readers

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions and which are in turn based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to, among other things, CTF’s fundraising target, the expected impact and returns of CTF and the expected timing for announcing initial investments and the first close of CTF.

Although Brookfield believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, certain factors, risks and uncertainties, which are described from time to time in our documents filed with the securities regulators in Canada and the United States, or that are not presently known to Brookfield or that Brookfield currently believes are not material, could cause actual results to differ materially from those contemplated or implied by forward-looking statements.

Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release. Except as required by law, Brookfield undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.

About Brookfield Asset Management

Brookfield Asset Management (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield operates one of the world’s largest platforms for renewable power and sustainable solutions. Our renewable power portfolio consists of hydroelectric, wind, utility-scale solar and storage facilities in North America, South America, Europe and Asia, and totals approximately 34,000 megawatts of installed capacity and a development pipeline of approximately 200,000 megawatts. Our portfolio of sustainable solutions assets includes our investments in Westinghouse, a leading global nuclear services business, and a utility and independent power producer with operations in the Caribbean and Latin America, as well as both operating assets and a development pipeline of carbon capture and storage capacity, agricultural renewable natural gas and materials recycling.

As a signatory to the Net Zero Asset Managers initiative, Brookfield is committed to supporting the goal of achieving net-zero greenhouse gas emissions by 2050 or sooner—in line with the Paris Agreement.

For more information, please visit our website at www.brookfield.com.

About ALTÉRRA

ALTÉRRA is the world’s largest private investment vehicle for climate finance. Launched at COP28 with a US$30 billion commitment from the UAE, ALTÉRRA aims to build innovative partnerships to mobilize US$250 billion globally by 2030 to finance the new climate economy and accelerate the climate transition.

ALTERRA’s dual-arm structure enhances its impact: the US$25 billion Acceleration Fund directs capital towards projects crucial for accelerating the global transition to a net-zero and climate-resilient economy at scale. The US$5 billion Transformation Fund incentivizes investment flows in high-growth climate opportunities in underserved markets by providing catalytic capital.

Alterra Management Limited is duly licensed and authorised by the ADGM Financial Services Regulatory Authority under the Financial Services Permission No. 200001.

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Gnosis Freight Announces Strategic Growth Investment from Vista Equity Partners

Vista Equity

Investment will fuel continued innovation in the leading Container Lifecycle Management® Platform, powering visibility and execution for the world’s container traffic.

CHARLESTON, S.C.–(BUSINESS WIRE)–Gnosis Freight (“Gnosis”), a leading provider of supply chain visibility and execution software designed to manage the full lifecycle of the shipping container, today announced a strategic growth investment from Vista Equity Partners (“Vista”), a global investment firm focused exclusively on enterprise software, data and technology-enabled businesses. The investment supports Gnosis’ mission to help logistics companies work together better across the entire ecosystem.

“Gnosis is pioneering digital connectivity between logistics partners at a critical and complex juncture of the global supply chain”

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Founded in 2017, Gnosis provides a smarter way to track and manage containers and collaborate with logistics partners in a single location. In 2020, Gnosis launched its Container Lifecycle Management® (CLM) platform, and coined the term CLM. Embedded in the platform, Gnosis’ proprietary container tracking engine, Marlo®, delivers complete, accurate and timely insight that eliminates the global supply chain’s persistent blind spots and drives connectivity across the ecosystem. With Gnosis, customers realize immediate return on investment and embark on a turnkey step into digitizing their shipping container operations end-to-end.

“We’ve added significant new product capabilities and welcomed a record number of new customers to Gnosis this year – but I believe we are just getting started. From the very beginning, we have focused on our customers’ needs and successes as our north star. We are grateful for their support and encouragement, which reinforced our belief in the impact we can create. We feel confident our platform is precisely what our industry has been asking for, and we are eager to get it in the hands of more customers,” said Austin McCombs, CEO & Co-Founder of Gnosis Freight.

“Our decision to forge this new partnership with Vista builds on this momentum, fueling our mission to help logistics companies work together better. We are proud to serve the hardworking and creative people in the logistics industry and are committed to doubling down on what has gotten us here – listening to them. Our platform was built with, for and because of the leaders in our space who hold the responsibility of ensuring that goods flow seamlessly around the world. We are thrilled to have Vista’s support and resources to ensure we can continue to empower the logistics industry for years to come.”

Gnosis currently monitors more than 95% of global ocean commerce, offering logistics specialists unprecedented visibility over their supply chains. With a majority of global importers and exporters still relying on spreadsheets to manage their complex international supply chains, the demand for sophisticated solutions to streamline operations is substantial.

“Gnosis is pioneering digital connectivity between logistics partners at a critical and complex juncture of the global supply chain,” said Rachel Arnold, Co-Head of Vista’s Endeavor Fund and Senior Managing Director. “After years of tracking this industry and getting to know Austin, the Gnosis team, and observing their relentlessly customer-centric culture, we could not be more excited to partner with them as they continue to invest in capabilities and products that will amplify what has made them so successful to date: delivering value to customers.”

Vista’s investment in Gnosis was made by the firm’s Endeavor Fund, which provides growth capital and strategic support to market-leading, high-growth enterprise software, data and technology-enabled companies that have achieved at least $10 million in recurring revenue.

About Gnosis Freight

Gnosis Freight is a leading provider of supply chain visibility and execution software, made available through its proprietary Container Lifecycle Management® (CLM) platform—the world’s first supply chain platform focused on the full lifecycle of your shipping containers. Powered by the most complete, accurate, and low latency container tracking data available, the CLM platform provides logistics professionals with a smarter way to track and manage their containers, from booking until returned empty.

Gnosis Freight’s global footprint encompasses a diverse customer base, including top cargo owners (BCOs), ocean carriers, forwarders, truckers, 3PLs, technology providers, and other critical supply chain partners—all utilizing the CLM platform to achieve new levels of efficiency, cost savings, and collaboration within their supply chain.

Gnosis Freight is committed to delivering practical and innovative logistics technology solutions, offering both standard out-of-box platform features and tailored solutions designed to help companies navigate complex logistics challenges and improve the lives of logistics professionals everywhere. Further information is available at gnosisfreight.com. Follow Gnosis on LinkedIn, @Gnosis Freight, and on X, @GnosisFreight.

About Vista Equity Partners

Vista is a leading global investment firm with more than $100 billion in assets under management as of March 31, 2024. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, permanent capital, credit and public equity strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista’s investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity. Further information is available at vistaequitypartners.com. Follow Vista on LinkedIn, @Vista Equity Partners, and on X, @Vista_Equity.

Contacts

For Gnosis Freight
Media@gnosiscompanies.com

For Vista Equity Partners
Brian Steel
media@vistaequitypartners.com
(212) 804-9170

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Bain Capital signs €700mn Joint Venture agreement with Neinor Homes

BainCapital

Bain Capital signs €700mn Joint Venture agreement with Neinor Homes

  • Neinor Homes has reached an agreement to acquire a 10% stake in Bain Capital’s Habitat Inmobiliaria
  • It forms a new €700mn JV with Bain Capital through which Neinor Homes will develop and manage Habitat’s real estate assets

London – September 23, 2024 – Neinor Homes (“Neinor”), the leading listed residential property developer in Spain, today reached an agreement with Merak IMS, S.L. (“Merak”), a holding company controlled by funds managed by Bain Capital, to acquire a 10% stake in Promociones Habitat, S.A. (“Habitat”) and enters into an agreement where Neinor will provide development and management services to Habitat’s ongoing developments and land bank.

At the end of June, Habitat had a land bank with the capacity to develop c.8,000 residential housing units. Of the total land bank, Habitat has nearly 50% launched with c.4,000housing units in different stages of development, of which c.2,200 units are currently under construction or completed and 1,939 units are already sold.

As part of the deal, Neinor will provide services to a high-quality land bank. Madrid represents c.3,500 housing units or 44% of the total land bank, located in key areas such as the new southern-west developments of Berrocales, Ahijones and Valdecarros, but also located in high growth areas located to the east of the city, such as Retamar de la Huerta and Brunete.

Borja García-Egotxeaga, Neinor Homes’ CEO comments that: “This deal is bound to transform the growth paradigm in the Spanish residential sector, where in recent years existing platforms haven’t been able to scale meaningfully. Today, thanks to our dealmaking and execution capacity we are strategically positioned to seize growth opportunities in ways that are highly accretive to both shareholders and co-investors. Additionally, the expected strength of the Spanish macro in the next three years is set to act as a tailwind clearly playing into our advantage.”

Ali Haroon, a Partner at Bain Capital said: “Our residential housing strategy is closely aligned with our firmwide thematic investment approach to create lasting value. With demand for housing growing across Spain, we believe there is a significant opportunity to develop high quality housing for the high concentration of households seeking the dream of homeownership. Bain Capital is a global player in the real estate business with significant investments and a clear investment strategy in the Spanish market. We have a solid track record in focusing on value-add real estate assets, enabling us to successfully deliver for investors.”

Jordi Argemi, Neinor Homes’ Deputy CEO and CFO says: “This transaction marks a breakthrough in the execution of Neinor’s Strategic Plan as it accelerates both the timing and scale of our JV business, whose value is yet to be priced by the market. Moreover, we are extremely pleased that with an innovative structure, we’ve been able to earn Bain Capital’s trust as its main partner in Spain, reinforcing our ability to manage their platform and maximise returns.”

Nikolay Golubev, a Partner at Bain Capital commented: “We look forward to building upon this partnership with Neinor and leveraging our deep industry expertise to deliver quality housing in Spain. In the seven years since we acquired Habitat, we have created 5,498 units in a market facing a real shortage of residential housing, a strategy making a big impact across the homebuilding sector.”

* For the full regulatory announcement please refer to Neinor’s webpage

About Bain Capital

Bain Capital is one of the world’s leading private multi-asset alternative investment firms that creates lasting impact for our investors, teams, businesses, and the communities in which we live. Since our founding in 1984, we’ve applied our insight and experience to organically expand into numerous asset classes including private equity, credit, public equity, venture capital, real estate and other strategic areas of focus. The firm has offices on four continents, more than 1,750 employees and approximately $185 billion in assets under management. To learn more, visit www.baincapital.com.

About Neinor Homes

Neinor Homes is the leading residential property developer in Spain, with a land bank to develop c12,000 homes, and a GAV to June 2024 of €1.5bn. This land bank is located in some of the fastest growing regions with the best economic fundamentals in Spain: Madrid, Western and Eastern Andalusia, Levante, Basque Country and Catalonia.  Neinor is a fully integrated and well-established residential platform of scale in Spain, covering the entire development value chain from land buying, planning and urban management, product design, delegated development and construction, sales and marketing and rentals. We are committed to creating and delivering attractive risk adjusted returns for shareholders through our disciplined capital allocation strategy and our excellence in operations and risk management. We are the only listed residential property developer with a multi-sector strategy to market in Spain, and our strategies include Build-to-rent (BTR); Build-to-sell (BTS); and the largely untapped senior living rental market in Spain, which we are progressing. Neinor’s operational excellence, investment strategy and results achieved since 2019 have enabled us to deliver on our 5-year business plan, launched in March 2023, in a sustainable and capital-efficient manner. This plan combines a €600 million shareholder remuneration plan and an investment of €1 billion in new opportunistic land acquisitions, half of which are expected to be undertaken in joint ventures with strategic partners through co-investment agreements, with a +20% IRR target. We offer shareholders attractive risk adjusted returns in a country where there are strong and sustainable supply and demand fundamentals and supported by a resilient macroeconomic environment and outlook. Spain remains one the most attractive and safest residential markets worldwide, with one of the lowest ratios of new supply per capita globally since 2007.

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Ratos restructuring rail infrastructure operations – focusing on electrification

Ratos

Ratos-owned Expin Group’s offering has included project development, contracting and maintenance for railways and rail infrastructure. Operations are now being restructured to focus on the electrification of rail infrastructure.

Elektrosignal Infra and Ratatek, two subsidiaries of Expin Group, are leaders in the Swedish and Finnish market for the electrification of rail infrastructure and will form the basis of the new structure, which also includes the smaller subsidiary TKBM. Other operations in Expin Group will be divested or discontinued in autumn 2024.

In January 2024, Ratos announced that errors had been identified in the accounting of several Expin Group subsidiaries. The resulting investigations into this have now been concluded and form the basis for a police report and compensation claims.

“The future strategic direction is to focus on electrification of rail infrastructure. This is a profitable and growing niche, and we currently have two leading businesses with Elektrosignal Infra and Ratatek that will serve as the foundation of the group moving forward,” says Christian Johansson Gebauer, Chairman of the Board of Expin Group and President, Business Area Construction & Services, Ratos.

The financial impact on the Ratos Group as a result of this change will be negligible.

For more information, please contact:
Josefine Uppling, VP Communication & Sustainability, Ratos, +46 76 114 54 21
josefine.uppling@ratos.com

About Ratos
Ratos is a Swedish business group focusing on technological and infrastructure solutions, consisting of 17 companies divided into three business areas: Construction & Services, Industry and Consumer. The companies have approximately SEK 33 billion in net sales (June LTM). 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 subsidiaries to excel by being part of something larger. People, leadership, culture and values are key focus areas.

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KKR Completes Joint Acquisition of Immedica Pharma

KKR
Stockholm and London, 20 September 2024 – KKR, a leading global investment firm, and Impilo, a Nordic healthcare investment firm, have today announced the completion of their joint acquisition of Immedica Pharma, a pharmaceutical company headquartered in Stockholm and focused on the commercialization of medicines for rare diseases and specialty care products.

Having announced the strategic partnership in April this year, KKR and Impilo will continue to work together with Immedica’s experienced management team to support the business’ growth, as it continues to build on its position as a leader in the European rare disease space.

Kugan Sathiyanandarajah, Partner and Head of KKR’s Health Care Strategic Growth business in Europe, commented: “We are excited to close the transaction with Immedica, alongside Impilo. We remain committed to supporting Immedica’s future growth as a rare disease player with a highly promising pipeline and attractive international expansion prospects.”

Magnus Edlund, Partner at Impilo, commented: “We are eager to now embark on the next phase of Immedica’s growth journey together with KKR and management, making innovative medicines available to more patients with high unmet medical needs.”

Anders Edvell, CEO of Immedica, commented: “This collaboration with KKR and Impilo marks an exciting step forward in our mission to deliver innovative treatments to more patients with rare diseases. With their support, we are well-positioned to enhance our growth and continue addressing critical unmet medical needs across the globe.”

Since its founding in 2018 by Impilo, Immedica has built an impressive portfolio and pipeline of drugs primarily within haematology, oncology and genetic & metabolic diseases for rare conditions with high unmet medical needs, generating revenues of EUR 100m and annual growth of more than 50%.

KKR invested in Immedica through its KKR Health Care Strategic Growth Fund II, a $4.0 billion fund focused on investing in high-growth health care companies. KKR has a long track record of supporting health care companies globally, having invested approximately $20 billion in the sector since 2004.

Impilo re-invested into Immedica through a continuation fund which will enable Impilo to continue supporting Immedica with additional equity alongside KKR.

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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. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About Impilo:
Impilo is a Nordic investment company focused solely on investments in companies operating in the pharmaceutical, medical technology, healthcare services and other health related industries. Our starting point is that our portfolio companies must contribute to a positive and sustainable development of the societies and markets in which they operate in order to remain successful in the long term. Impilo strives to increase value of its investments through longterm active ownership. Impilo has a well-diversified portfolio of healthcare investments and manages c. EUR 1 billion of capital from leading Nordic and international investors. Learn more about Impilo at www.impilo.se.

Contacts:
Immedica
Linda Holmström, Head of Communications
linda.holmstrom@immedica.com

KKR
Nordics
Fogel & Partners
Ludvig Gauffin
kkr@fogelpartners.se

UK
FGS Global
Alastair Elwen
KKR-Lon@FGSGlobal.com

Impilo
Magnus Edlund, Partner
magnus.edund@impilo.se

 

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Global Travel Technology Company OYO to Acquire G6 Hospitality from Blackstone Real Estate

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Blackstone

New Delhi & Dallas – September 20, 2024 – Oravel Stays, the parent company of the global travel technology company OYO, today announced that it has agreed to acquire G6 Hospitality, the leading economy lodging franchisor and parent company of the iconic Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million, in an all-cash transaction.

OYO has steadily expanded its footprint in the United States since its launch in the region in 2019 and currently operates over 320 hotels across 35 states. In 2023, OYO added nearly 100 hotels to its US portfolio and aims to add ~250 hotels in 2024. Motel 6’s franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6. OYO will leverage its comprehensive technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.

“This acquisition is a significant milestone for a startup company like us to strengthen our international presence. Motel 6’s strong brand recognition, financial profile and network in the US, combined with OYO’s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity,” said Gautam Swaroop, CEO OYO International.

Under its ownership, Blackstone invested significant capital to create value and enhance the Motel 6 brand, including executing a strategy to transform the business into a leading asset light lodging company with a franchise network of ~1500 hotels across the United States and Canada.

Julie Arrowsmith, President and Chief Executive Officer at G6 Hospitality, said,“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter. OYO’s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades.”

Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said, “This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period. We believe G6 is extremely well-positioned for the future and we look forward to seeing its brands continue their success in the years to come.”

The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s legal advisor.

About OYO
OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 175K hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia. For more information, visit here

About G6 Hospitality LLC
G6 Hospitality LLC is a leading economy lodging franchisor, with nearly 1,500 economy lodging locations under the iconic Motel 6 brand and the Studio 6 Extended Stay brand in the United States and Canada. G6 Hospitality is committed to making hospitality accessible to all through responsible business practices and unparalleled opportunity for franchisees to build a legacy through ownership. Both Motel 6 and Studio 6 were recognized in the 2024 Entrepreneur Franchise 500® report, with Motel 6 ranking in the top 50 of all franchises. The Carrollton, Texas, based company was named a 2024 Leader in Diversity by Dallas Business Journal. For more information, please visit http://www.g6hospitality.com/.

About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has US $336 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, data centers, residential, office and hospitality. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone’s Core+ business invests in substantially stabilized real estate assets globally, through both institutional strategies and strategies tailored for income-focused individual investors including Blackstone Real Estate Income Trust, Inc. (BREIT). Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).

CONTACTS:
OYO
Anupriya Malik
Anupriya.d@oyorooms.com

G6 Hospitality
Maggie Giddens
Giddens_Maggie@g6hospitality.com

Blackstone
Jeffrey Kauth
Jeffrey.Kauth@Blackstone.com

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Serent-Backed KEV Group Acquires Gray Step Software

Serent Capital

KEV Group, a leading provider of school activity fund management software, announced the acquisition of California-based Gray Step Software. Gray Step has served the K-12 market since 2014 with their ASBWorks, PTEZ, and Booster Finance software solutions.

The addition of Gray Step will work to strengthen KEV’s leadership position in the school activity fund management software industry in North America and demonstrates the company’s commitment to its strategy of delivering easy-to-use, best-in-class software that provides financial accountability, transparency, efficiency gains, and convenience to K-12 districts.

“Gray Step is a strong, strategic fit for KEV,” said Bram Belzberg, Chairman and CEO of KEV Group. “The acquisition allows us to create a larger presence in the market with increased resources, talent, and aligned vision. Combining Gray Step’s team and product portfolio with KEV will enhance our software and services offerings, providing additional value for customers as we bring together two respected and purpose-driven organizations.”

“This marks an exciting new chapter for us,” commented Brian Cichella, Gray Step Co-Founder and President. “I’m incredibly proud of what we’ve achieved in serving schools with innovative solutions that allow them to manage their activity funds. KEV is an ideal partner to further our mission. With their resources and leadership position in the market, we’ll be able to accelerate product innovations and do even more for our customers. The entire Gray Step team is excited about what lies ahead.”

Terms of the agreement have been finalized but were not disclosed.

Serent Capital invests in growing businesses that have developed compelling solutions that address their customers’ needs. As those businesses grow and evolve, the opportunities and challenges that they face change with them. Principals at Serent Capital have firsthand experience at capturing those opportunities and navigating these difficulties through their experiences as CEOs, strategic advisors, and board members to successful growing businesses. By bringing its expertise and capital to bear, Serent seeks to help growing businesses thrive. Learn more about our portfolio companies.

Other News at Serent Capital

At Serent Capital, we work hard to create effective and longstanding growth with all our portfolio companies. Here’s what we’ve been up to recently.

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This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Serent Capital or any company in which Serent Capital or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Serent Capital does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Serent Capital’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision.
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Axel Springer Announces New Corporate Structure to Unlock Future Growth Potential

KKR
  • Under the ownership of Friede Springer and Mathias Döpfner, Axel Springer to become a privately owned and operated news media and media marketing company
  • Classifieds businesses to become separately held entities with new shareholder structure under KKR and CPP Investment’s majority ownership
  • Axel Springer revenue grew by over 30 percent during the five-year strategic partnership[1] with KKR and CPP Investments, realizing the growth potential of both the classifieds and media businesses through internationalization and digitization

Berlin, September 19, 2024 – Axel Springer SE (“Axel Springer”) today announced a strategic decision to create a new corporate structure for the company, with a goal to create a focused media company and separately held classifieds businesses. The new corporate structure is designed to position all businesses for optimal future growth potential and success in their respective markets. A final agreement is expected in the coming months. The transaction is expected to close in Q2 2025 subject to receipt of all requisite regulatory approvals.

Friede Springer, Vice Chairwoman of the Supervisory Board of Axel Springer: “For the past decades, we have enjoyed remarkable achievements with Axel Springer. Throughout, we never lost what truly defines us: being a journalistic institution with clear values. So, it was Mathias Döpfner’s and my vision that one day, Axel Springer would again be a privately owned and operated company. The realization of this vision now fills me with great joy.”

Henry Kravis, Co-Founder and Co-Executive Chairman at KKR: “Our partnership with Friede and Mathias has been exceptional and reflects the great admiration KKR has for visionary entrepreneurs and family-led businesses like Axel Springer. After a long and productive partnership, this natural next step for the Axel Springer group is a great outcome for all stakeholders involved.”

Mathias Döpfner, CEO of Axel Springer: “Before we began our partnership with KKR five years ago, Friede Springer and I had an idea of how the company could ideally look like down the road. That vision is now close to becoming reality. This would not be possible without the dedication of our employees, who give their all for Axel Springer. But it’s also clear: Without the excellent and consistently reliable partnership with KKR, this outcome would have never been possible. In the new structure, we will have the very best requisites for a great future for journalism.”

Philipp Freise, Partner and Co-Head of European Private Equity, KKR: “We are proud to have partnered with Friede and Mathias since 2019 in pursuit of Axel Springer’s vision to become a leading global provider of digital content and classifieds. We have jointly reached this goal by acquiring industry leaders such as POLITICO to expand across geographies and segments, transforming the group’s operations, and attracting market leading talent. We are excited to continue the partnership as we further grow the classifieds businesses, working with the talented teams at Stepstone, AVIV, finanzen.net and Awin in our shared pursuit of future value creation.”

Deal Structure and Details

The planned new structure foresees that Axel Springer’s media businesses – BILD, Business Insider, POLITICO, WELT, idealo, Bonial, Morning Brew, Dyn Media, EMARKETER, and the joint venture Ringier Axel Springer Poland – will remain within Axel Springer. Friede Springer and Mathias Döpfner will together hold close to 98 percent of the company. Axel Sven Springer, one of the grandchildren of the company founder, will retain the remaining shares – a smaller portion of his previous minority shareholding. This makes Axel Springer a fully privately owned and operated media company for the first time since the company’s IPO back in 1985.

The Stepstone Group, AVIV Group, finanzen.net, and Awin, pending approvals, will be held as separate joint venture companies with KKR and CPP Investments as majority shareholders, Axel Springer as minority co-shareholder, and with an economic participation by the grandchildren of Axel Springer. The exact participation of the respective shareholders is to be finalized in the process of getting to binding agreements.

This decision marks a new era for Axel Springer, with all businesses set to pursue their respective growth paths that align with their core strengths and market opportunities.

Successful Strategic Partnership

The decision to adopt a new corporate structure follows more than five years of successful collaboration between Axel Springer’s shareholders. Through the partnership with KKR and CPP Investments, Axel Springer has undergone a significant transformation. Since its delisting from public markets in 2020, the shareholders have provided expertise, global resources, and enabled over EUR 1.9 billion of investments to help Axel Springer accelerate its digital transformation and expand into new markets and adjacencies, both organically and through significant M&A activity.

The past five years have been one of the most successful periods in Axel Springer’s history. Despite challenging market conditions, the company achieved remarkable growth, with annual revenues increasing by 30 percent to nearly EUR 4 billion. In both 2021 and 2022, the company recorded double-digit top-line growth. In 2023, over 85 percent of Axel Springer’s revenue was generated from digital sources and EUR 2 billion in revenue came from its media businesses worldwide. Strategic acquisitions during this period have helped solidify Axel Springer’s position as a global leader: POLITICO and Morning Brew in the US and ScreenOnDemand in Germany have expanded the company’s media capabilities. Mya Systems and Bayard in the US, MeilleursAgents in France, and Neuraum in Germany have strengthened the company’s classifieds capabilities.

Positioned for Future Growth

The classifieds businesses will continue to independently pursue their respective growth strategies, with strong strategic support from KKR and CPP Investments. Following significant platform and technology investments over the past five years, the businesses are expected to drive increased product innovation to continue providing market leading services for customers.

The new corporate structure will allow Axel Springer to continue focusing on its core mission: shaping the future of independent AI-empowered journalism. As a privately owned and operated media company, Axel Springer will be debt-free and continue to operate outside the short-cycle nature of equity capital markets. This makes it well-positioned to further strengthen its market position and pursue long-term growth opportunities and investments in a culture of true entrepreneurship.

###

For further information, please contact:

Axel Springer Adib Sisani +49 30 2591 77655 adib.sisani@axelspringer.com
KKR Thea Bichmann

Emily Lagemann

 +49 172 13 99 761

+49 160 992 713 35

 kkr_germany@fgsglobal.com
CPP Investments Steve McCool +44 7780 224 245 smccool@cppib.com

 

About Axel Springer

Axel Springer is an international media and technology company. By providing information across its diverse media brands (among others BILD, WELT, Business Insider, POLITICO) and classifieds (The Stepstone Group and AVIV Group) Axel Springer empowers people to make free decisions for their lives.

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. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2024, the Fund totalled C$646.8 billion. For more information, please visit  www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

 

[1] All subsequent references to partnership refer to a strategic partnership.

 

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EQT to acquire Indostar Home Finance, an Indian affordable housing finance company, for INR 17.5 billion (USD 210 million) and invest INR 5 billion to support further growth

eqt

ndostar Home Finance is a fast-growing affordable housing finance company with INR 24 billion (USD 286 million) in assets under management, that has supported over 39,000 low income homeowners and small businesses

India’s INR 30 trillion housing finance market presents a multi-decade growth story driven by strong government support, rising affordability and urbanization

EQT will invest INR 5 billion in primary capital to support Indostar Home’s continued growth, including by broadening its footprint across India and investing in digital capabilities

EQT is pleased to announce that the BPEA Mid-Market Growth Partnership (or “the MMG fund”) has agreed to acquire a 100% stake in Indostar Home Finance (or “the Company”), a wholly owned subsidiary of Indostar Capital Finance Limited, for INR 17.5 billion (USD 210 million).

Founded in 2017, Indostar Home Finance provides affordable mortgages to retail customers in tier 2 to tier 4 cities in India and has supported over 39,000 low income homeowners and small businesses. The Company has rapidly scaled to more than INR 24 billion in assets under management, achieving a 32 percent compounded annual growth in the last three years. Indostar Home Finance has a network of more than 130 branches spread across nine states and employs over 1,000 people.

The Indian housing finance market currently stands at more than INR 30 trillion, according to the CRISIL. The segment has recorded strong growth driven by government support, rising affordability, and urbanization. However, there remains a significant shortage of housing in the country, with India’s mortgage to GDP ratio at 12.3% compared to more than 60% for developed countries like the USA and UK.

The MMG fund will invest INR 5 billion of primary capital in Indostar Home Finance to support its next phase of growth. EQT aims to expand the Company’s geographic footprint and accelerate its digital transformation journey by leveraging EQT’s in-house digitalization expertise, network of seasoned industry advisors, and expertise in go-to-market strategies.

Ashish Agrawal, Partner in the EQT Private Capital Asia advisory team, said: “Retail lending is a key investment theme for EQT within financial services in India. Building on our investment in the education finance sector through HDFC Credila last year, we are thrilled to welcome Indostar Home Finance to our portfolio. India’s affordable housing finance sector represents a long-term growth opportunity supported by secular demand drivers, favorable government policies and resilient asset quality across economic cycles”

Hemant Sharma, Managing Director in the EQT Private Capital Asia advisory team, said: “Indostar Home Finance has established itself as a leading player in this segment and is well-positioned for continued growth. We are impressed by its market-leading position in South India and strong underwriting capabilities. We see significant potential to expand Indostar’s presence across India and drive its digital transformation. EQT looks forward to supporting the company in its next phase of growth.”

Mr. Shreejit Menon, CEO of Indostar Home Finance, said: “This transaction marks a key milestone for Indostar Home Finance. We are excited to embark on this new journey with EQT, who shares our vision and whose partnership will significantly help advance our mission of delivering affordable housing finance solutions across India. With EQT’s support and global expertise, we are well-positioned for accelerated growth and success.”

The transaction is subject to customary regulatory approvals.

Contact
EQT Press Office, press@eqtpartners.com

About

About EQT
EQT is a purpose-driven global investment organization with EUR 246 billion in total assets under management (EUR 133 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

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

About Indostar Home Finance
IndoStar Home, a wholly owned subsidiary of IndoStar Capital Finance Ltd, is an affordable housing finance player with an AUM of INR 24 Bn and a network of 130+ branches. The company was incorporated in October 2017 with the objective of providing low ticket housing loans and loan against property, with an average ticket size of INR 0.9Mn, to the middle income and under-served customers. Indostar has an experienced management team with a pan-India presence across 9 states in India.

More info: https://www.indostarhfc.com/about-us

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Fairbanks Morse Defense to Acquire Rolls-Royce Naval Propulsors & Handling Business

Arcline

BELOIT, Wis., September 19, 2024 / Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management, has entered into an agreement with Rolls-Royce to acquire its Naval Propulsors and Handling business. The acquisition will include a range of propellers and waterjets for naval applications, as well as marine handling systems, which enable the deployment and recovery of manned and unmanned craft, and other cargo, from naval vessels.

“When you look at the 150-year history of Fairbanks Morse Defense, you will find a handful of distinctive moments that completely transformed this company. We believe the acquisition of Rolls-Royce naval propulsors and handling businesses will become one of those moments,” said George Whittier, CEO of Fairbanks Morse Defense. “The way that our products and services complement each other is unmatched in the defense industrial base. Combining our capabilities allows Fairbanks Morse Defense to substantially increase what we offer to our U.S. maritime defense customers while also offering our systems and components solutions to Rolls-Royce’s global customer base.”

The acquisition will add the following to the Fairbanks Morse Defense portfolio:

Rolls-Royce Pascagoula, Mississippi Facility – Pascagoula is a fully integrated marine propeller and waterjet manufacturing campus that is responsible for producing controllable pitch propeller blades and hub body castings, large fixed-pitch propellers, and waterjets for the U.S. Navy. It is the country’s only privately owned foundry that is qualified to cast propellers for the U.S. Navy’s surface and submarine fleet, making it a United States National Asset.

 

Rolls-Royce Walpole, Massachusetts Facility – For over 50 years, the Rolls-Royce Walpole campus has delivered critical ship propulsor systems and aftermarket services for the U.S. Navy and Coast Guard and other international navies, including controllable pitch propellers, fixed propellers, and waterjets.

 

Rolls-Royce Peterborough, Ontario Canada Facility – The Centre of Excellence for Naval Handling in Peterborough, Ontario supports the design and manufacture of handling systems, launch and recovery systems, and undersea sensors and systems for navies across the globe. Its products include the next-generation Mission Bay Handling System for the Global Combat Ship program, a frigate program for the UK Royal Navy, Royal Canadian Navy, and Royal Australian Navy.

Rolls-Royce Naval-Marine propellers can be found on all the U.S. aircraft carriers currently in service. They are also used on U.S. Navy fleet supports, amphibious ships, surface combatants, submarines and more, as well as on U.S. Coast Guard vessels. Rolls-Royce handling systems are found on many of the U.S. Navy’s surface combatants.

“Rolls-Royce Naval Propulsors & Handling is an industry leader and trusted supplier to navies around the world. We are pleased to collaborate with Fairbanks Morse Defense, who recognizes the value of this business and the outstanding opportunities for its strong future.” said Adam Riddle, President – Defense and Chairman & CEO, Rolls-Royce North America. “We believe this transaction represents the best outcome for the business, its people, and the military customers they serve.”

Fairbanks Morse Defense has built a diverse portfolio that now includes engines, electrical hardware, motors, valves, cranes, davit systems, fans, fittings, and water treatment solutions. The company has also advanced its technology offerings with AI, digital defense, telerobotics, additive manufacturing, smart engineering, uncrewed mission management, extended reality, and remote collaboration tools.

Jefferies is serving as financial advisor to Fairbanks Morse Defense.

This sale is subject to customary closing conditions, including regulatory review and approval. The financial details of the sale are not being disclosed.

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