Category Archives: News

KKR To Invest In Encavis AG To Accelerate The Company’s Long-Term Growth

KKR
  • KKR announces the signing of an Investment Agreement with Encavis as part of a takeover offer. The Management Board and the Supervisory Board of Encavis are fully supportive of the strategic partnership and intend to recommend that all shareholders accept the offer.
  • ABACON and other shareholders have signed binding agreements to sell and roll-over Encavis shares to BidCo and are fully supportive of the takeover offer. Viessmann will invest as shareholder in the KKR-led consortium.
  • The voluntary public takeover offer for all outstanding free float shares of Encavis will be launched at the offer price of EUR 17.50 per share, representing a 33% premium to the undisturbed 3-month volume-weighted average share price as of 5 March 20241 and a 54% premium to the closing price of EUR 11.35 per share on 5 March 20241.
  • The takeover offer will be subject to a minimum acceptance threshold ensuring that after settlement of the offer, BidCo will hold at least 50% plus one share of the capital and voting rights in Encavis on a fully diluted basis considering the conversion of up to all of the convertible bonds. KKR and the Management Board intend to delist Encavis as soon as practically possible after closing.
  • Together with the Management Board of Encavis and certain existing shareholders, including ABACON, KKR and Viessmann will enable Encavis to expand its contribution to Europe’s green energy transition. The consortium is expected to bolster the Company’s project pipeline, amplify capacity and extend its reach in core markets.
  • KKR does not require a domination and profit and loss transfer agreement (“DPLTA”) to finance the takeover offer or to realise the strategic and economic objectives and hence has undertaken not to enter into a DPLTA with Encavis for at least two years.

March 14, 2024 – Today, Blitz 21-823 AG (in future: Elbe BidCo AG, “BidCo”), a holding company controlled by investment funds, vehicles and accounts advised and managed by Kohlberg Kravis Roberts & Co. L.P. and its affiliates (collectively, “KKR”) has signed an Investment Agreement with Encavis AG (“Encavis”), a leading and proven German renewable energy platform and independent power producer (“IPP”). As part of the transaction, BidCo will launch a voluntary public takeover offer for all outstanding free float shares of the Company. Viessmann Group GmbH & Co. KG (“Viessmann”) will invest as shareholder in a KKR-led consortium. ABACON CAPITAL (“ABACON”) and other shareholders have signed binding agreements to sell ca. 18% and roll-over ca. 13% of Encavis shares and are fully supportive of the takeover offer.

Encavis AG operates a portfolio of more than 190 solar photovoltaic (“PV”) and more than 40 onshore wind farms with a current operating capacity of around 2.2 GW across 10 European countries. Encavis has long-term power purchase agreements with various high-quality counterparties in place in addition to a multi-year project pipeline. The well-managed diversified asset base together with the ability to be a fully integrated local pan-European partner, positions Encavis as a strong independent player in key markets such as Germany, Spain, Denmark, Italy, and France. Furthermore, the Company demonstrates a proven capability across the entire value chain, construction, financing, operation and in-house maintenance. With KKR’s and Viessmann’s support, Encavis is poised for an accelerated growth across all these segments.

“Unlocking the full potential of renewable energy requires expertise as well as substantial long-term capital. We are pleased that KKR’s strategic investment will provide Encavis with the necessary long-term financial resources at a pivotal time for the Company and position it to seize emerging opportunities and solidify its strength in the clean energy landscape. Furthermore, it also contributes to fostering a more energy-independent Europe,” said Vincent Policard, Partner and Co-Head of European Infrastructure at KKR.

Max Viessmann, CEO of Viessmann: “The collaboration with KKR and our investment in Encavis are important steps in our commitment to expanding our entrepreneurial activities and our responsibility for the future of our planet. With a clear focus on our purpose, we are reinvesting the proceeds from the transatlantic partnership of our climate solutions business with Carrier Global into our family business in order to expand our ecosystem of co-creators who share the same responsibility: Maximizing the positive impact for generations to come.”

Dr Christoph Husmann, Spokesman of the Management Board and Chief Financial Officer (CFO) of Encavis said: “Over the past years, Encavis has grown into one of the leading independent power producers in Europe and has strong ambitions to further continue on this growth path. With KKR and Viessmann, we aim to bring partners on board who share the same long-term and entrepreneurial approach and extensive experience of investing behind the energy transition. We are convinced that with the additional financial and strategic support, we will be able to leverage our assets and competences and take our business to the next level to compete with the largest European players.”

“We are convinced that Encavis has great potential. We want to increase and accelerate its realization. This requires strong partners – and we have now found them. The group of investors led by ABACON therefore supports KKR’s offer and welcomes KKR and Viessmann’s entry. We remain invested in Encavis and look forward to working actively together in the future,” said Tobias Krauss, CEO ABACON CAPITAL.

The transaction strengthens Germany’s energy future and supports the broader renewable energy transition in Europe

The strategic partnership between KKR, Viessmann, ABACON and Encavis not only positions Encavis as a leading German player in the energy transition, but also supports the broader renewable energy transition across Europe. Encavis is well positioned to benefit from ambitious national and international plans for solar and wind expansion. Additional financial support from KKR and Viessmann will enable the Company to capitalise on promising growth opportunities in the sector. The strategic partnership will further enable Encavis to bolster its project development pipeline, increase capacity and facilitate expansion into new markets. In addition, KKR, Viessmann and ABACON fully support the current growth strategy of the management team.

KKR and Viessmann have a long track record in the energy and infrastructure sector

KKR and Viessmann provide significant expertise in global infrastructure, with a particular focus on the energy sector, and have a proven track record of investing in companies on a long-term basis.

Furthermore, KKR and Viessmann share a commitment to investing in the future of renewable energy and are convinced by Encavis’ strong potential with the right support and resources.

KKR is excited to build on its long tradition of successful partnerships with family businesses in Germany and to work with Viessmann. With USD 59 billion of infrastructure assets under management, including over USD 15 billion invested in the energy transition, KKR brings a global investment perspective, extensive experience in large-scale infrastructure projects and a proven track record in European high-profile transactions such as Vantage Towers, Viridor, Zenobe or Greenvolt.

Viessmann brings a rich heritage in energy solutions, technological innovation, and a strong commitment to sustainability.

The family company is enlarging its ecosystem with strategic acquisitions and entrepreneurial co-investments to strengthen the impact of its purpose of co-creating living spaces for generations to come. Viessmann has already been successfully active with targeted investments for many years. Following its value-driven approach of entrepreneurs for entrepreneurs, it has been accelerating the growth of more than 25 mid-sized companies and family businesses globally in the past years.

The long-standing shareholder ABACON supports the growth partnership between KKR, Viessmann and Encavis and will remain an indirect long-term investor in the Company. The support of existing shareholders, including ABACON, as well as the management of Encavis and Viessmann makes this transaction a true German partnership solution and ensures business continuity for all stakeholders.

Following its first investment in the DACH region in the late 1990s, KKR has expanded its local footprint and has had an office in Frankfurt since 2018. In total, KKR has already invested over EUR 15 billion in long-term equity in over 30 companies in the region across various alternative asset classes. Across the DACH region, KKR has an exceptional track record of developing global market leaders, primarily through strategic partnership deals such as in Vantage Towers, GfK, Körber Supply Chain Software, Scout24 Switzerland and Wella Company.

Voluntary public takeover offer

As part of the strategic partnership, BidCo will launch a voluntary public takeover offer to the shareholders of Encavis. Encavis shareholders will be offered EUR 17.50 per share in cash. Encavis shareholders will benefit from a 33% premium to the undisturbed 3-month volume-weighted average share price as of 5 March 2024 and a 54% premium to the closing price of EUR 11.35 per share on 5 March 2024, i.e. the last close prior to the ad hoc announcement from Encavis confirming talks on a potential transaction with KKR.

The voluntary public takeover offer will be subject to a minimum acceptance threshold of 54.2852% of all outstanding Encavis shares, including the ca. 18% of Encavis shares that ABACON and other shareholders will sell and the ca. 13% of Encavis shares that ABACON and other shareholders will roll-over to the BidCo under binding agreements.

The voluntary public takeover offer will be subject to various customary offer conditions, including the receipt of regulatory, antitrust and FDI approvals, with closing expected in Q4 2024.

As part of the transaction, BidCo and Encavis have entered into an Investment Agreement in which Encavis agreed to support the takeover offer. Subject to their review of the offer document, the Management Board and Supervisory Board of Encavis support the offer and intend to recommend that Encavis shareholders accept the offer. The current Management Board members of Encavis will continue to lead the Company.

KKR does not require a domination and profit and loss transfer agreement (“DPLTA”) to finance the takeover offer or to realise the strategic and economic objectives and hence has undertaken not to enter into a DPLTA with Encavis for at least two years. In the Investment Agreement, BidCo has agreed with Encavis not to pursue a DPLTA for at least a two-year-period.

Post-settlement, BidCo intends to delist Encavis from the stock exchange as soon as practically possible after closing. Under private ownership, Encavis would be able to benefit from financial flexibility and a long-term commitment of KKR and Viessmann, allowing it to capitalise on attractive growth opportunities even better.

Offer document and further information

The voluntary public takeover offer will be made pursuant to an offer document to be approved by the German Federal Financial Supervisory Authority (BaFin). This offer document will be published following receipt of permission from BaFin, at which point the initial acceptance period of the takeover offer will commence. The offer document (in German and a non-binding English translation) and other information pertaining to the voluntary public takeover offer will be published on the following website: www.elbe-offer.com.

KKR will be investing through its Core Infrastructure strategy.

PJT Partners is acting as financial advisor and Latham & Watkins and Hengeler Mueller are acting as legal advisors on the takeover offer.

1 The last close prior to the ad hoc announcement from Encavis confirming talks on a potential transaction with KKR.

2 This accounts for potential dilution of existing shareholders from conversion of the hybrid convertible bonds; equivalent to 50% plus one share in case of a conversion of all of the hybrid convertible bonds.

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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.

KKR established its Global Infrastructure business in 2008 and has since grown to one of the largest infrastructure investors globally with a team of more than 115 dedicated investment professionals. The firm currently oversees approximately USD 59 billion in infrastructure assets globally as of 31 December 2023, and has made over 80 infrastructure investments across a range of sub-sectors and geographies. KKR’s infrastructure platform is devised specifically for long-term, capital intensive structural investments.

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 Viessmann
Founded in 1917, the independent family company Viessmann is today a global, broadly diversified Group. All activities are based on the company’s purpose “We co-create living spaces for generations to come”. This is the passion and responsibility that the large worldwide Viessmann family brings to life every day. Following this purpose, Viessmann forms an ecosystem of entrepreneurs and co-creators with a clear focus on CO2 avoidance, CO2 reduction and CO2 capturing.

About ABACON
ABACON CAPITAL, a family-owned investment firm, champions the sustainable energy transition, pioneering mobility solutions, and groundbreaking deep tech. Our mission centers on uplifting communities, fostering purposeful endeavors, and ensuring profitability, all while advancing societal and environmental well-being.

Founded by Albert Büll, a visionary entrepreneur and investor with a legacy in nurturing sustainable enterprises – such as B&L Group in real estate development, Encavis AG in renewable energy production, and noventic in smart metering and energy management – ABACON is built on a foundation of innovation and responsibility.

About Encavis
The Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from Renewable Energies listed on the MDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), Encavis acquires and operates (onshore) wind farms and solar parks in twelve European countries. The plants for sustainable energy production generate stable yields through guaranteed feed-in tariffs (FIT) or long-term power purchase agreements (PPA). The Encavis Group’s total generation capacity currently adds up to around 3.6 gigawatts (GW), of which around 2.2 GW belong to the Encavis AG, which corresponds to a total saving of around 0.8 million tonnes of CO2 per year stand-alone for the Encavis AG. In addition, the Group currently has around 1.2 GW of capacity under construction, of which around 830 MW are own assets.

Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors. Another Group member company is XYZ S.p.A., based in Parma, Italy, a specialised provider of technical services for the installation, operation, maintenance, revamping and repowering of photovoltaic systems across Europe.

Encavis is a signatory of the UN Global Compact as well as of the UN PRI network. Encavis AG’s environmental, social and governance performance has been awarded by two of the world’s leading ESG rating agencies. MSCI ESG Ratings awarded the corporate ESG performance with their “AA” level and ISS ESG with their “Prime” label (A-).

Additional information can be found on www.encavis.com

Media Contacts

KKR
Thea Bichmann
Mobile: +49 (0) 172 13 99 761
Email: kkr_germany@fgsglobal.com

Emily Lagemann
Mobile: +49 (0) 160 99 27 13 35
Email: kkr_germany@fgsglobal.com

Viessmann
Byung-Hun Park
Vice President Corporate Communications
E: huni@viessmann.com
M: +49151-64911317

Disclaimer and forward-looking statements
This press release is neither an offer to purchase nor a solicitation of an offer to sell Encavis Shares. The final terms of the Takeover Offer as well as other provisions relating to the Takeover Offer will be communicated in the offer document after the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) has permitted the publication of the offer document. Investors and holders of Encavis Shares are strongly advised to read the offer document and all other documents relating to the Takeover Offer as soon as they have been made public, as they will contain important information. The offer document for the Takeover Offer (in German and a non-binding English translation) with the detailed terms and conditions and other information on the Takeover Offer will be published after approval by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) amongst other information on the internet at www.elbe-offer.com.

The Takeover Offer will be implemented exclusively on the basis of the applicable provisions of German law, in particular the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz – WpÜG), and certain securities law provisions of the United States of America relating to cross-border takeover offers. The Takeover Offer will not be conducted in accordance with the legal requirements of jurisdictions other than the Federal Republic of Germany or the United States of America (as applicable). Accordingly, no notices, filings, approvals or authorizations for the Takeover Offer have been filed, caused to be filed or granted outside the Federal Republic of Germany or the United States of America (as applicable). Investors and holders of Encavis Shares cannot rely on being protected by the investor protection laws of any jurisdiction other than the Federal Republic of Germany or the United States of America (as applicable). Subject to the exceptions described in the offer document and, where applicable, any exemptions to be granted by the respective regulatory authorities, no takeover offer will be made, directly or indirectly, in those jurisdictions in which this would constitute a violation of applicable law. This press release may not be released or otherwise distributed in whole or in part, in any jurisdiction in which the Takeover Offer would be prohibited by applicable law.

The Bidder reserves the right, to the extent permitted by law, to directly or indirectly acquire additional Encavis Shares outside the Takeover Offer on or off the stock exchange, provided that such acquisitions or arrangements to acquire are not made in the United States, will comply with the applicable German statutory provisions, in particular the WpÜG, and the Offer Price is increased in accordance with the WpÜG, to match any consideration paid outside of the Offer if higher than the Offer Price. If such acquisitions take place, information on such acquisitions, including the number of Encavis Shares acquired or to be acquired and the consideration paid or agreed, will be published without undue delay if and to the extent required under the laws of the Federal Republic of Germany, the United States or any other relevant jurisdiction. The Takeover Offer will relate to shares in a German company admitted to trading on the Frankfurt Stock Exchange and Hamburg Stock Exchange and will be subject to the disclosure requirements, rules and practices applicable to companies listed in the Federal Republic of Germany, which differ from those of the United States and other jurisdictions in certain material respects. The financial information relating to the Bidder and Encavis included elsewhere, including in the offer document, will be prepared in accordance with provisions applicable in the Federal Republic of Germany and will not be prepared in accordance with generally accepted accounting principles in the United States; therefore, it may not be comparable to financial information relating to United States companies or companies from other jurisdictions outside the Federal Republic of Germany. The Takeover Offer will be made in the United States pursuant to Section 14(e) of, and Regulation 14E under, the Exchange Act, and on the basis of the so-called Tier II exemption from certain requirements of the Exchange Act, which exemption allows a bidder to comply with certain substantive and procedural rules of the Exchange Act for takeover bids by complying with the law or practice of the domestic legal system and exempts the bidder from complying with certain other rules of the Exchange Act, and otherwise in accordance with the requirements of the laws of the Federal Republic of Germany. Shareholders from the United States should note that Encavis is not listed on a United States securities exchange, is not subject to the periodic requirements of the Exchange Act and is not required to, and does not, file any reports with the United States Securities and Exchange Commission.

Any contract entered into with the Bidder as a result of the acceptance of the planned Takeover Offer will be governed exclusively by and construed in accordance with the laws of the Federal Republic of Germany. It may be difficult for shareholders from the United States (or from elsewhere outside of Germany) to enforce certain rights and claims arising in connection with the Takeover Offer under United States federal securities laws (or other laws they are acquainted with) since the Bidder and Encavis are located outside the United States (or the jurisdiction where the shareholder resides), and their respective officers and directors reside outside the United States (or the jurisdiction where the shareholder resides). It may not be possible to sue a non-United States company or its officers or directors in a non-United States court for violations of United States securities laws. It also may not be possible to compel a non-United States company or its subsidiaries to submit themselves to a United States court’s judgment.

 

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Cathay Capital supports the Caillau-AdiWatt Group in the acquisition of a majority stake in B&K Solar

Cathay Capital

March 11, 2024
Europe

Paris, March XX, 2024 – A portfolio company of Cathay Capital since 2018, Caillau is a world leader in the design, manufacture and marketing of fastening and sealing systems for automotive and aerospace manufacturers industries. Following the acquisition of AdiWatt in 2021, which is entirely dedicated to photovoltaic energy, the announcement of this majority stake acquisition in B&K Solar allows the Group to intensify its growth and diversification strategy in the solar sector in Europe with the financial and operational support of the Cathay Capital teams.

The Caillau Group is a world leader in the design, manufacture and marketing of fastening and sealing systems for automotive and aerospace manufacturers industries. With a workforce of around 600, state-of-the-art production facilities in Romorantin (France), and subsidiaries in China, the USA and Brazil, the century-old Caillau Group has been developing high-tech and mission critical products for decades. The long-standing confidence of European automakers and automotive suppliers, combined with market penetration with new players, particularly from Asia, have enabled the Caillau Group to record strong growth over the last 15 years, reaching sales of c. 150 million euros in 2023.

B&K was founded in 2012 and specializes in versatile solutions for a wide array of roofing applications. Built on a foundation of proactive customer service, B&K provides safe, light and adaptable mounting systems produced in Gütersloh, Germany and Pęgów, Poland. These two entities employed more than 20 employees in 2023. Post-operation, Solar business unit consolidated sales exceed 50 million euros in 2023.

Commenting on the new collaboration, co-founders Patrick Behnke and Martin Kisiel said: “We are thrilled with this partnership. It’s a significant milestone for us and we are confident that we have found the right industry ally, with a strong industrial know-how, significant R&D capabilities, commercial and industrial network. Their expertise and products portfolio complements our innovative spirit and together we will reach new markets and generate significant synergies for both entities”.

For Stéphane Drivon, Chairman of the Group, “the acquisition of AdiWatt in 2021 marked an important step in Caillau’s growth and diversification strategy, as we gained a foothold in a forward-looking industry that leverages the Group’s industrial, technological and product know-how. While we are determined to remain a major player in the field of mobility, through our Automotive and Aerospace Business Units, this acquisition enabled the Group to create a complementary “Solar” Business Unit. Our ambition is to play a key role in the consolidation of European market in the field of high value-added fastening systems”.

“We are proud to have supported the Caillau-AdiWatt Group and its management team since our investment in 2018. This century-old company has experienced remarkable internationalization and a strong growth dynamic in recent years, marked in particular by sustained development in Asia and a positioning on the photovoltaic market. This diversification dynamic, which began with the acquisition of AdiWatt in 2021, continues today with the majority stake acquisition in B&K Solar, opening up significant development prospects for Caillau in Europe, at a time when the decarbonization of energy production is at the heart of concerns,” said Jeremie Falzone at Cathay Capital.

About Caillau-AdiWatt

The Caillau Group is a world leader in the design, manufacture and marketing of fastening and sealing systems for automotive and aerospace manufacturers industries. With a workforce of around 600, state-of-the-art production facilities in Romorantin (France), and subsidiaries in China, the USA and Brazil, the century-old Caillau Group has been developing high-tech and mission critical products for decades.
For more information visit: www.caillau.com/

About B&K Solar

B&K was founded in 2012 and specializes in versatile solutions for a wide array of roofing applications. Built on a foundation of proactive customer service, B&K provides safe, light and adaptable mounting systems produced in Gütersloh, Germany and Pęgów, Poland.
For more information visit: www.bksolarezukunft.de/

About Cathay Capital

Cathay Capital Group is a global investment firm supporting companies at all stages throughout North America, Asia, Europe and Africa. By helping navigate the opportunities of globalization and sustainable transformation, Cathay is the partner of choice for companies aspiring to lead markets and make a positive impact. Its global platform connects people – from investors and entrepreneurs to management teams and leading corporations – across continents to share knowledge, the tools to scale, and achieve the extraordinary. Founded in 2007 with a strong entrepreneurial heritage, Cathay Capital now manages over $5B in assets, has completed over 260 buyouts, growth and venture capital investments with the global reach and local expertise from offices in Paris, Munich, Berlin, New York, San Francico, Shanghai, Beijing, Shenzhen and Singapore. For more information, please visit www.cathaycapital.com and follow us on LinkedIn, Twitter @CathayCapital

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Why we’re investing in AlTi Tiedemann Global

AllianzX
Published in Allianz X

Following four months of negotiations, an agreement was reached for Allianz X to invest up to $300 million in AlTi Tiedemann Global, a leading independent global wealth and alternatives manager. The result creates a pivotal opportunity for Allianz in the wealth and alternatives management sector. In this Q&A interview, Allianz X staff involved in the complex deal unpack the intricate details of it, the unique value proposition of AlTi, and the strategic rational behind it all.

“Allianz X brings capital and skills to our portfolio companies to foster innovation, fuel growth and realize their ambitions. Our investment in AlTi demonstrates our approach as well as our conviction in wealth management and alternatives, and we believe it will unlock opportunities for scale, new revenue streams, and societal impact for the Allianz Group,” said Allianz X CEO Dr. Nazim Cetin.

What is AlTi Tiedemann Global?

Alexander De Kegel: AlTi is a leading independent global wealth and alternatives manager with combined assets of approximately $68 billion. It provides a comprehensive range of customized services to an ultra-high-net-worth clientele, including entrepreneurs, foundations, multi-generational families, and emerging next-generation leaders. These services include estate planning, fiduciary administration, impact investing, investment advisory, and philanthropy. Unique in its field, AlTi deftly combines the extensive services typical of large firms with the personalized care characteristic of a boutique.

Why has AlTi captured our interest?

Michael Bradt: Our interest stems from our position at the intersection of financial services and technology. Our ongoing analysis pinpoints opportunities for collaboration with promising growth businesses to enhance their competitive advantage and generate financial and strategic returns for Allianz. We have developed a strong hypothesis in the global wealth domain. Wealth management, which offers access to an attractive pool of recurring revenues and is complementary to insurance and asset management, aligns well with Allianz’s overall mission to secure the future of our clients and their families.

What distinguishes AlTi from others in the industry?

Niklas Mundorf: AlTi serves ultra-high-net-worth (UHNW) clients, a focus it has honed over two decades. Its global presence matches the international requirements of its clients and their families, which provides it with a distinct advantage compared to many regional competitors. AlTi’s open architecture means solutions can be optimally tailored to each client’s needs. The company also has its own strategic alternatives business and access to many others. This ensures clients access to the most fitting and effective investment opportunities to meet their goals. The team at AlTi provides an incredible client experience. But don’t take our word for it; their client retention rate has been 97% since 2019, a clear indicator of the company’s distinction in the field.

What’s in it for AlTi?

Philip Wieland: As active investors, we are committed to supporting our portfolio companies throughout their growth journey, assisting them to achieve their milestones and emerge as leaders in their fields. A key aspect of our strategy involves leveraging opportunities within the Allianz universe to enhance AlTi’s business. We see tremendous potential in this partnership, and are eager to demonstrate this in the coming months and years.

Why another North American investment?

Maya Rollinger: This investment transcends geographical boundaries by targeting the global wealth sector. Although AlTi’s headquarters are in New York, their clients, operations, and teams have broad international reach, spanning Asia, Europe, and North America. Our investment accelerates AlTi’s strategy to become the leading global independent wealth and alternatives manager by enabling it to execute on its global mergers and acquisitions pipeline and expand its business in both existing and new markets.

What makes the wealth sector attractive?

Johann Kraberger: Many things. From a macro perspective, the increasing complexity and rapid change in global markets are driving a rising demand for expert private wealth management. The sector benefits from the accumulation and intergenerational transfer of wealth, contributing to steady market growth. From an investor’s perspective, wealth management is capital-efficient, offering substantial margins and dependable revenue streams. A critical feature of this sector is the profound, trust-based relationships between clients and their advisors, leading to exceptional retention rates as well as the creation of long-term partnerships and mutual value.

Sümer Uysal: From a strategic standpoint, Allianz, being one of the world’s largest asset managers with approximately $1.8 trillion in third-party assets under management, possesses extensive expertise in institutional money management. Wealth management introduces a pivotal link between institutional asset management and private wealth, which provides Allianz with exposure to a new market segment. It also offers AlTi the chance to capitalize on the capabilities, infrastructure, and scale of one of the world’s premier asset managers and insurance providers.

How does AlTi fit into Allianz X’s portfolio?

Alex: AlTi’s addition represents a strategic expansion of our portfolio. After thorough team deliberations on diversifying our presence into new, competitive areas, investing in AlTi emerged as a key move to prove our investment thesis in the wealth sector. This further enriches our portfolio of high-conviction investments and takes the total value of assets managed from the North American office beyond the one-billion-dollar mark.

How is the investment structured?

Gregor Freilinger: The investment is planned to be up to $300 million allocated across common and preferred equity, comprising an initial $250 million with an option for an additional $50 million. This is anticipated to potentially lead to a voting stake of up to 24.9%. Beyond the financial aspects, our engagement with AlTi will be formalized by nominating two members to its Board of Directors, facilitating strategic partnership and guidance.

When will the investment “close”?

Philip: We signed the transaction on the 22nd of February 2024 and are currently undertaking all necessary steps to secure the required regulatory approvals. This is a marathon, not a sprint.

What’s next?

Maya: We are looking forward to working closely with AlTi in the future. The investment is just the first step of our journey together. With our recently opened office in New York, we are best positioned to jointly unlock opportunities for both AlTi and the Allianz Group.

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Eurazeo signs an agreement to sell 100% of Peters Surgical’ share Capital to Advanced Medical Solutions Group PLC

Eurazeo

Eurazeo Small-mid buyout strategy and the management of Peters Surgical announce that they have signed an agreement to sell all the share capital of Peters Surgical to Advanced Medical Solutions Group plc (AIM: AMS), a world-leading specialist in tissue-healing technologies listed in the London Stock Exchange.

Eurazeo has been supporting Peters Surgical, a leading global provider of specialty surgical sutures, mechanical haemostasis and internal cyanoacrylate devices, as a majority shareholder, since 2013. Over the past years, Eurazeo has enabled the company to expand its presence in the operating room by developing organically and by acquiring new product ranges, such as haemostatic clips or surgical glue. Thanks to numerous acquisitions, Peters Surgical has also increased its shares of direct-selling capabilities, and expanded its geographical presence in the United States, in Asia and in key European countries (Germany, Poland, among others).

The transaction will allow Peters Surgical to benefit from significant complementarities with Advanced Medical Solutions Group plc in terms of portfolio of surgical products, of sales capabilities and commercial footprint in key territories as well as distribution networks.

The transaction remains subject to approval of French authorities for foreign direct investment control. The sale of Peters Surgical would allow funds managed by Eurazeo, to receive estimated proceeds of €66m (of which c. €46m for Eurazeo’s Balance Sheet) upon closing. These proceeds are subject to adjustments based on completion accounts and earn-outs which could be triggered and paid in 2024 and 2025.

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Linden Invests in Alcresta Therapeutics

Linden Capital Partners

Chicago, IL (March 12, 2024) – Linden Capital Partners (“Linden”), a Chicago-based healthcare private equity firm, announced today the completion of its acquisition of Alcresta Therapeutics, Inc. (“Alcresta” or “the Company”), a leader in commercializing novel enzyme-based products designed to address challenges faced by patients living with gastrointestinal disorders and rare diseases.

Alcresta recently announced 510(k) clearance of its next-generation RELiZORB® (iMMOBILIZED LIPASE) cartridge by the Center for Devices and Radiological Health of the U.S. Food and Drug Administration. The next-generation RELiZORB device was developed to address the enteral nutrition needs of a wider population of patients living with rare diseases and is expected to launch in Q2 2024.

Linden Operating Partner Ron Labrum, who is joining Alcresta as Chairman of the Board of Directors, said, “I am very excited to join the Alcresta team to support the continuing growth of the company. Alcresta’s rapid progress has made a meaningful difference for patients living with rare diseases that struggle with fat malabsorption. Linden feels very fortunate to partner with Alcresta as it prepares for new levels of momentum and success in the years ahead.”

Daniel Orlando, CEO of Alcresta, said, “We have been very impressed with Linden’s thoughtful investment approach as we finalize launch plans for the next generation RELiZORB and accelerate R&D efforts for an iteration to treat enterally fed patients in the NICU. We anticipate considerable growth in the years to come and appreciate the added strategic planning and investment experience that Linden brings to Alcresta.”

Piyush Shukla, Partner at Linden and incoming Board member at Alcresta, added, “Linden’s investment in Alcresta is a direct result of our dedicated and longstanding medical devices and specialty pharma sector effort. We have been impressed with the organization and team that Daniel has built and are excited to partner with Alcresta on this next phase of growth.” Linden’s Ernest Waaser and Prab Chawla have also joined the Board of Directors, alongside Alcresta CEO Daniel Orlando.

Kirkland & Ellis LLP and Cain Brothers, a division of KeyBanc Capital Markets, served as legal advisor and financial advisor to Linden, respectively. Wilmer Cutler Pickering Hale and Dorr LLP and Rothschild & Co served as legal advisor and financial advisor to Alcresta, respectively. Twin Brook Capital Partners and MidCap Financial provided debt financing for the transaction.

About Alcresta Therapeutics, Inc.
Alcresta Therapeutics, Inc. is dedicated to developing and commercializing novel, enzyme-based products designed to address challenges faced by patients living with gastrointestinal disorders and rare diseases.  Alcresta currently markets RELiZORB for enterally fed patients with pancreatic insufficiency, which occurs in cystic fibrosis, pancreatic cancer, and pancreatitis, and is developing platform applications for patients with short bowel syndrome (SBS) and prematurely born infants treated in the NICU.  More information can be found at www.alcresta.com.

About Linden Capital Partners
Linden Capital Partners is a Chicago-based private equity firm focused exclusively on the healthcare industry. Founded in 2004, Linden is the country’s largest dedicated healthcare private equity firm by total buyout capital raised. Linden’s strategy is based upon three elements: (i) healthcare specialization, (ii) integrated private equity and operating expertise, and (iii) its differentiated human capital program. Linden invests in middle market platforms in the medical products, specialty distribution, pharmaceutical, and services segments of healthcare. Since its founding, Linden has invested in over 40 healthcare companies encompassing over 325 total transactions. The firm has approximately $8 billion in regulatory assets under management. For more information, please visit www.lindenllc.com.

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HarbourView Equity Partners Secures Close To $500 Million In Debt Financing From KKR And Other Investors To Expand Music Investment Opportunities

KKR

NEWARK, N.J.–(BUSINESS WIRE)–HarbourView Equity Partners (HarbourView), an industry-leading alternative asset management company focused on investment opportunities in the sports, media and entertainment space, has secured approximately $500 million in debt financing through a private securitization backed by its diversified catalog of music royalties. Insurance vehicles and accounts managed by KKR, a leading global investment firm, led the financing and investment accounts advised by Kuvare Asset Management also participated in the transaction.

“We are grateful to KKR for working with us to deliver a flexible and innovative financing structure that will support HarbourView in expanding its reach,” said HarbourView Founder and CEO Sherrese Clarke Soares. “This capital will allow us to further our mission of investing in assets and companies driven by premier intellectual property while striving to ensure that creators are appropriately valued for their contributions to the world.”

“This transaction is a testament to the scale and versatility of our High-Grade Asset-Based Finance strategy, which is a fast-growing segment of our private credit business,” said Avi Korn and Chris Mellia, Co-Heads of U.S. Asset-Based Finance at KKR. “Music IP is one of many areas where we see opportunity and we are pleased to finance a scaled and high-quality portfolio in this space.”

KKR’s Asset-Based Finance (ABF) strategy focuses on privately originated and negotiated credit investments that are backed by large and diversified pools of financial and hard assets, offering diversification to traditional corporate credit and attractive risk-adjusted returns. KKR’s ABF platform began investing in 2016 and now has approximately $48 billion in ABF assets under management globally across its High-Grade ABF and Opportunistic ABF strategies.

Established in 2021, HarbourView Equity Partners has quickly solidified its position in the industry, amassing roughly $1.6 billion* in regulatory managed assets and establishing a distinctly diverse portfolio featuring thousands of titles spanning numerous genres, eras, and artists. The asset manager has acquired 50+ catalogs including Pat Benatar and Neil Giraldo, Fleetwood Mac’s Christine McVie, Wiz Khalifa, Brad Paisley, Jeremih, Nelly, Luis Fonsi, Eslabon Armado and more. Their diversified catalog features ~28,100+ songs across both master recordings and publishing income streams.

The financing further emphasizes HarbourView’s commitment to delivering the best execution for its growing LP base and comes on the heels of numerous major deals, including its $300 million credit facility expansion announced in December 2023.

Guggenheim Securities, LLC served as sole structuring advisor, and Guggenheim Securities, LLC and Barclays acted as co-placement agents on this transaction.

About HarbourView Equity Partners
HarbourView Equity Partners is an investment firm, founded by Sherrese Clarke Soares, focused on the entertainment and media markets. The firm seeks businesses or assets powered by IP and investment opportunities that aim to build enduring value and returns. HarbourView has been extremely active since launching in 2021, acquiring over 50 music catalogs to date. The firm’s distinctly diverse portfolio features thousands of titles spanning numerous genres, eras, and artists, amounting to a diversified catalog of ~28,100+ songs across both master recordings and publishing income streams. In addition to music, HarbourView is focused on opportunities to support premium content across the entertainment, sports, and media sectors. The company is headquartered in Newark, NJ.

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.

*Regulatory AUM for private funds are calculated regardless of the nature of the gross assets under management. This includes any uncalled committed capital pursuant to an obligation to make a capital contribution to the fund.

Contacts

Media:

For HarbourView: The Lede Company | harbourview@ledecompany.com

For KKR: Julia Kosygina | +1 212-750-8300 | Media@kkr.com

 

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Second acquisition in 2024: Mutares has signed an agreement for the transfer of Magirus from Iveco Group

Mutares
  • Well-known provider of vehicles, ladders and other products and related aftersales services in the firefighting and disaster control markets
  • New platform investment to strengthen the Goods & Services segment
  • Revenues over EUR 300 million

Munich, March 13, 2024 – Mutares SE & Co. KGaA (ISIN: DE000A2NB650) has signed an agreement for the transfer of Magirus from Iveco Group (EXM: IVG). The company will strengthen the Goods & Services segment as a new platform. Due to the required unbundling measures, the transaction is expected to be completed no later than January 2025.

Magirus is amongst the best-known and most technologically leading providers of firefighting technology worldwide. Founded in 1864 and headquartered in Ulm, Germany, the company generates over EUR 300 million in revenues and employs around 1,300 staff at its four sites in Germany, Italy, Austria and France. Magirus offers a comprehensive range of products in the firefighting and disaster control field, such as a complete range of vehicles, ladders, pumps and components & systems, including customer service and aftersales. The company has a global commercial presence serving over 70 countries, its main customers are municipalities and public administrations, airports and industrial companies.

With its strong brand, best-in-class innovation and advanced technology, the company has a unique competitive positioning as a leader in its field, drawing the way for future growth in a resilient and expanding market while optimizing its supply chain and seizing further market opportunities overseas.

Mark Friedrich, CFO of Mutares, comments on the transaction: “Magirus is a typical Mutares acquisition where the company stands for a reputed brand with high quality and represents a compelling value proposition. We therefore see huge potential in the business and are looking forward to further leveraging on its position in Europe and globally.”

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Groome, an Argosy Private Equity Portfolio Company, Acquires W-S Companies

Argosy

We are pleased to announce that Groome Industrial Service Group (“Groome”), a portfolio company of Argosy Private Equity has completed the acquisition of W-S Companies.

W-S Companies and its subsidiaries, (collectively “W-S” or the “Company”), is a provider of industrial services through eight associated entities, offering industrial cleaning and maintenance services such as abrasive grit-blasting, mechanical machine maintenance, explosive de-slagging, welding, and environmental waste removal and disposal, catering primarily to gas & coal-fired power plants. Founded in 1993 and headquartered in Council Bluffs, Iowa, the Company operates out of 15 facilities spanning Arkansas, Florida, Georgia, Iowa, Montana, Missouri, Oklahoma, Texas, and Wisconsin, with additional satellite facilities in Nebraska and North Dakota.

For over 50 years, Groome has provided specialty maintenance services nationwide for several industries including natural gas-fired power generation, coal-fired power generation, refinery, shipping, manufacturing, and aviation. As an industry leader focused on the future, Groome’s turnkey services reduce harmful emissions, improve plant performance, and extend the life of valuable industrial equipment. Their experienced in-house labor teams have helped to establish Groome as the maintenance provider of choice.

W-S provides complementary service offerings to Groome’s base industrial cleaning services, such as industrial and municipal waste removal and disposal, welding & pipefitting education, hydro-excavation, and industrial vacuuming. Additionally, synergies in the customer base in the Midwest and South are expected to offer combined cross-selling opportunities. The acquisition is also expected to improve seasonality of revenue.

Jeff Bause, President & CEO of Groome, stated, “We are excited for W-S to join the Groome Team, creating a bigger and better specialty maintenance company with an even stronger nationwide presence. Both companies provide a service mix that is complimentary to one another while also offering unique specialty services. This acquisition now gives Groome one of the broadest offerings in the industry.”

“We are thrilled about the combination of Groome and W-S. Given Groome’s experience with previous acquisitions, we have confidence in the team’s demonstrated ability to execute integration plans. The consolidated companies now offer a comprehensive suite of services delivered on a national scale. This acquisition not only strengthens Groome’s position in the market but also underscores our commitment to providing unparalleled value and support to its clients,” said Keven Shanahan, Managing Partner, Argosy Private Equity.

Integration is already underway. The Groome and W-S management teams, along with Argosy, are actively working on implementing Argosy’s Value Acceleration Methodology (VAM™) acquisition program to help integrate the operations, realize synergies between the companies, and seek to grow the combined company.

For more information, please contact Keven Shanahan at kshanahan@argosycapital.com

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Aligned Data Centers and Blackstone Credit & Insurance Announce Financing

Blackstone

NEW YORK, NY and DALLAS, TX – Blackstone Credit & Insurance (“BXCI”) and Aligned Data Centers, a leading technology infrastructure company offering innovative, sustainable, and adaptive Scale Data Centers and Build-to-Scale solutions for global hyperscale and enterprise customers, today announced that Blackstone has provided an initial $600 million senior secured credit facility to support the development of Aligned’s newest and largest data center in West Jordan, Utah. The senior secured credit facility is committed entirely by insurance accounts managed by BXCI’s Infrastructure & Asset Based Credit Group.

“Blackstone’s support contributes to Aligned’s continued growth in meeting the capacity demands of customers across the globe,” said Anubhav Raj, Chief Financial Officer at Aligned. “The capital demands of this industry make strong financial backing crucial. Strategic financing partnerships focused on ingenuity and collaboration are a key advantage. We are excited to embark on this initial transaction and build on future opportunities with Blackstone.”

Robert Horn, Global Head of Infrastructure & Asset Based Credit at BXCI, said “We are thrilled to partner with Aligned and this partnership highlights our ability to support large scale digital infrastructure build-out with flexible and efficient financing solutions.”

Alan Carcich, Principal, Infrastructure & Asset Based Credit at BXCI, said “Aligned is one of the fastest growing data center platforms in the Americas and has a focus on sustainability – we look forward to working with the Aligned team.”

Aligned’s SLC-03 data center is a two-story, 80 MW build-to suit project on its hyperscale campus in West Jordan, Utah, which now houses three facilities. This is the company’s fourth hyperscale data center in the Salt Lake City metro area.

About Aligned Data Centers
Aligned Data Centers is a leading technology infrastructure company offering innovative, sustainable, and adaptive Scale Data Centers and Build-to-Scale solutions for global hyperscale and enterprise customers. Our intelligent infrastructure allows densification and vertical growth within the same footprint, enabling customers to scale up without disruption, all while maintaining industry-leading Power Usage Effectiveness (PUE). By reducing the energy, water, and space needed to operate, our data center solutions, combined with our patented cooling technology, offer businesses a competitive advantage by improving sustainability, reliability, and their bottom line. For more information, visit www.aligneddc.com and connect with us on X, LinkedIn and Facebook.

About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

Press and Analyst Inquiries
Jennifer Handshew for Aligned Data Centers
jennifer@180-mktg.com
+1 (917) 359-8838

Kate Holderness for Blackstone
Kate.holderness@blackstone.com
+1 (917) 318 6818

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Apollo Funds Agree to Sell 28.4% Stake in Vallourec to ArcelorMittal

Apollo logo

NEW YORK, March 12, 2024 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced that Apollo-managed Funds (“Apollo Funds” or the “Funds”) have agreed to sell 65.2 million common equity shares in Vallourec SA (Euronext: VK; “Vallourec”, the “Company”), a value-added manufacturer of premium tubular steel products, for €14.64 per share to ArcelorMittal. The shares sold represent a 28.4% equity interest1 in Vallourec and a total transaction value of approximately €955 million, and upon close will mark the Apollo Funds’ exit of the investment.

“We’re proud of the extremely strong results achieved during our Funds’ ownership as the Company transformed its operations under a top leadership team led by Philippe Guillemot and established itself as a focused world leader in the manufacturing of high performance tubular products. Along with this business transformation have come record levels of profitability, a more sustainable competitive position and an opportunity to capture future growth in the energy transition markets,” said Apollo Partner Gareth Turner. “There is still considerable potential to expand upon what we have achieved but it is now appropriate for Apollo to transition our Funds’ shareholding to an industrial partner that can take the Company forward. We remain confident that Vallourec is well-positioned for long-term growth and we wish Philippe and the entire team continued success.”

Philippe Guillemot, Vallourec Chairman and CEO, said, “Apollo’s operational and capital markets expertise was instrumental to Vallourec’s turnaround, and we thank the Apollo team for their unfailing support and world-class partnership. With Apollo’s Funds’ assistance, we have fundamentally changed the operational and financial structure of Vallourec and we believe we are on the right trajectory to deliver enhanced shareholder value over the coming years.”

After leading the financial restructuring of Vallourec, Apollo Funds became the largest equity investor in Vallourec in 2021. As a strategic capital partner, Apollo played a pivotal role in the design, launch, and implementation of the “New Vallourec” plan in May 2022, which helped to transform the Company’s operational design, footprint and capabilities, and drove EBITDA from €258mm in 2020 prior to Apollo Funds’ investment to €1,196mm in 2023, reflecting the best results in nearly 15 years.

The transaction is expected to close in the second half of the year, subject to satisfaction of customary closing conditions.

About Apollo

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2023, Apollo had approximately $651 billion of assets under management. To learn more, please visit www.apollo.com.

Contacts

Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

1 Not taking into account preferred shares already issued but not vested as of today.

 


Primary Logo

Source: Apollo Global Management, Inc.

Released March 12, 2024

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