Category Archives: News

CVC Asia V agrees acquisition of Affin Hwang AM

CVC Capital Partners

CVC signals strong confidence in Malaysia through landmark investment in leading asset management company

Affin Banking Group (“Affin Group”) has agreed to transfer its controlling stake in Affin Hwang Asset Management Berhad (“Affin Hwang AM”) to CVC Capital Partners Asia Fund V. This transaction is expected to be completed in Q3 2022, subject to customary closing conditions, including regulatory approvals.

Since its inception in 2001, Affin Hwang AM has grown to become one of Malaysia’s leading asset management firms with a diverse client base of public and private companies, institutions, pension funds, and individual investors. As at 31 December 2021, Affin Hwang AM as well as its wholly-owned Islamic fund management arm AIIMAN Asset Management, have a combined RM81 billion in assets under administration.

Datuk Wan Razly Abdullah, President and Group Chief Executive Officer of Affin Bank, said, “We are pleased to see the entry of CVC, a global private equity player, into a home-grown asset management house which is testament to the confidence in the growth prospects of the financial services sector and the Malaysian economy as a whole. With the continuation of the management of Affin Hwang AM helmed by Dato’ Teng Chee Wai and the institutional shareholding presence of Nikko Asset Management (“Nikko AM”), we believe that the business of Affin Hwang AM will continue to perform well moving forward and are confident that CVC, Affin Hwang AM management and together with Nikko AM are committed to support Affin Hwang AM’s growth, its superior long-term commitment to deliver value to clients and further develop its talented employees.”

Dato’ Teng Chee Wai, Managing Director of Affin Hwang AM, commented, “We are excited to work with CVC, together with our longstanding partner, Nikko AM, to chart the course for Affin Hwang AM’s next phase of growth and to advance the development of the Malaysian capital markets. The entry of CVC, a leading global private equity and investment advisory firm comes at the right time as we continue to broaden our suite of product offerings to cater to the growing needs of our clients and partners. We remain deeply committed to helping our clients build their wealth, and we look forward to partnering with CVC and Nikko AM to drive our commitment to our valued clients.”

Alvin Lim, Senior Managing Director at CVC, added, “This marks our sixth investment in Malaysia since 2007, bringing our total capital invested to over US$1 billion. We remain confident in the strong economic fundamentals of the country, and believe this investment is an important opportunity for us to contribute to the continued development of Malaysia’s asset management industry and capital markets, as well as to grow Malaysia into the region’s leading asset management hub. We are particularly excited to partner with Affin Hwang AM’s talented management team, who has shown a track record of outperformance, and Nikko AM, who will remain as a strategic shareholder. We look forward to supporting the management team in expanding the investment and product capabilities and entering other ASEAN markets, by leveraging on our experiences and network across the region.”

Eleanor Seet, President of Nikko Asset Management Asia Limited and Head of Asia-ex Japan of Nikko AM, opined, “Our commitment to the region and our clients in Malaysia remains steadfast. We are delighted to continue our long-term partnership with the AHAM management team and welcome CVC. We believe the synergy of the new partnership will continue to strengthen the growth trajectory of Affin Hwang AM and enhance our ability to deliver progressive solutions to valued clients.”

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EQT Exeter strengthens footprint in Asia – adds logistics real estate specialists in Japan and Korea

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eqt

EQT AB (publ) is pleased to announce that Bear Logi, a value-add logistics investment manager headquartered in Tokyo, Japan, and Seoul, Korea, will join EQT Exeter to further strengthen its footprint in Asia.

Bear Logi, founded in Tokyo, Japan in 2009, is a value-add logistics investment manager with around 25 employees focused on acquisitions, development, construction and leasing, with extensive knowledge of the Japanese and Korean logistics markets. To date, Bear Logi has invested capital based on single asset funding, and will as part of EQT Exeter create a fund-setup within logistics properties similar to EQT Exeter’s existing structure in the US and Europe.

The Bear Logi team, including its co-CEOs Matthew Zann and James Muir will, together with EQT Exeter’s China Logistics team, create an EQT Exeter APAC Logistics platform. The ambition is to build on existing strategies of acquiring and developing logistics properties in Tier 1 cities and logistic hubs across Japan, Korea and China.

Strategic rationale

  • Bear Logi’s skilled team, with deep local market knowledge and relationships, will provide EQT Exeter with direct access to the attractive logistics markets in Japan and Korea, with strong scalability potential in the broader APAC region, for example, Australia
  • Bear Logi will leverage EQT Exeter’s global track record and 1,200+ strong tenant relationships, as well as EQT’s 2,000+ corporate relationships and broader platform, including fundraising support, sustainability and digitalization expertise, and operating platform benefits
  • The combination with EQT Exeter’s existing operations in China will provide larger investment opportunities, with an integrated development and investor operating platform, in APAC logistics for EQT’s fund investors
  • EQT Exeter and Bear Logi have a strong cultural fit and similar investment philosophies, focused on vertically integrated real estate investments and a commitment to sustainability and ESG principles

Ward Fitzgerald, Partner and Head of EQT Exeter, said, “We are thrilled to welcome Matthew, James and the rest of the Bear Logi team to the EQT Exeter family, as we continue to expand our logistics real estate platform in the APAC region. With their complementary local market knowledge and expansive industry relationships, our combination with Bear Logi is the next step in EQT Exeter’s journey, strengthening our position as a multi-strategy, global real estate leader.”

Matthew Zann, co-CEO of Bear Logi, said, “We are excited to join forces with Ward, EQT Exeter, and the broader EQT platform to further build out the APAC logistics platform. The partnership will create new growth opportunities in the region as we leverage our local insights and relationships and combine it with EQT Exeter’s global expertise within logistics real estate.”

James Muir, co-CEO of Bear Logi, added, “The partnership with EQT Exeter not only accelerates our opportunities, but also strengthens our operating platform and ability to offer a broader set of clients access to the growing APAC logistics market.”

Bear Logi is estimated to generate approximately USD 1 million in revenues during 2021. The transaction is not deemed to have a material impact on EQT AB’s financial numbers and will not add any assets under management to EQT AB at closing. Closing took place on 27 January 2022.

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

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 33

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

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

The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in 24 countries across Europe, Asia-Pacific and the Americas and approximately 1,200 employees.

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

About EQT Exeter
EQT Exeter is a global real estate solutions provider serving corporate and consumer tenants with scope and scale. EQT Exeter is among the largest real estate investment managers in the world and is focused on acquiring, developing and managing logistics/industrial, office, life science and residential properties in Europe, the Americas and Asia. EQT Exeter was created through the combination of EQT Real Estate and Exeter Property Group. 

The EQT Exeter Team comprises more than 300 experienced professionals operating in close to 40 regional offices around the globe. Collectively they have consummated over 830 real estate investments. As part of EQT, the team has access to the full EQT Network including more than 600 industry advisors across the globe as well as EQT’s industry-leading sustainability credentials and framework, and in-house digitalization skills.

About Bear Logi
Bear Logi is an industrial property firm based in Tokyo and Seoul with a track record of delivering quality real estate solutions in Japan and Korea. Bear Logi provides real estate investment advice, property due diligence and full design, project and construction management services for industrial property projects.

The Bear Logi team comprises 25 employees operating in Japan and South Korea. The group has consulted and co-invested to build large multi-tenant and infill properties as well as last mile distribution centers to primarily serve the needs of growing e-commerce tenants.

More info: www.bearlogi.com

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Gimv acquires GSDI Group, the European leader in surface treatment and adhesive film application, to support its next stage of growth

GIMV
Topic: Investment

Gimv acquires a majority stake in GSDI Group, alongside its founder and management team, in order to support its growth in the French and international rail market and to accelerate its development in new application segments.

Founded nearly 30 years ago by its current CEO, Jacques Coueffé, GSDI (Massy – FR, www.gsdi.fr ) specialises in the surface treatment and installation of technical adhesive films. The Group offers complete solutions for renovation, thermal comfort, protection and decoration to its customers, who are present in the railway, building and food sectors. GSDI relies on the largest installation force in Europe with 160 applicators, all trained internally in its approved training center. The Group, which benefits from structural environmental trends, such as the development of rail transport and the energy transition in buildings, has a turnover of more than 30 million euros.

The Group has a recognised know-how in the railway sector, where it has developed strongly in the recent years thanks to its unique and reputable technical expertise in the application of films, and its ability to manage large and complex projects. This has enabled GSDI to support its customers abroad by opening subsidiaries in Spain, South Africa and Poland.

Gimv’s investment into GSDI’s capital, alongside Jacques Coueffé, who remains an important shareholder, and the management team, will enable the Group to support its growth ambitions in the railway market, both in France and internationally, and to accelerate its development in new high-growth segments. GSDI plans to expand its presence in the building sector, with the installation of thermal films to improve the energy performance of existing buildings, and applications to  improve hygiene and safety in the food industry. Throughout this primary LBO, Gimv will also support the structuring of the GSDI Group.

Jacques Coueffé, CEO of GSDI, says: “I am very happy with the arrival of Gimv, which my team and I found to be the ideal partner to enable GSDI to accelerate its growth and strengthen its organisation. The real understanding we quickly established between us, and the desire to work together, were key elements in our choice. Gimv also demonstrated a thorough understanding of our challenges and how to meet them, as well as a real know-how in B2B services. We are therefore looking forward to this partnership.”

Nicolas de Saint Laon, Head of Gimv France, and Maxence Kasper, Principal at Gimv, declare: “We are delighted to be able to support the entire GSDI management team in this new phase. The company benefits from unique assets to pursue its growth in the railway market, where it is already a reference, and to strongly accelerate its growth in new segments. This primary transaction fits perfectly with our Sustainable Cities sector investment platform, supporting the transformation of a group benefiting from structural environmental trends, such as the development of rail transport and the energy transition in buildings. Our expertise in BtoB services will also allow us to support the structuring of GSDI in France and internationally.”

Read the full press release:

English – French – Dutch
Gimv
Karel Oomsstraat 37, 2018 Antwerpen, Belgium

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KKR Leads Series C Round in Philippine B2B Platform GrowSari with US$45 Million Investment

KKR

Transaction marks KKR’s latest technology investment in the merchant enablement space

Latest round to support GrowSari’s expansion and strengthen its financial services capabilities

MANILA, Philippines–(BUSINESS WIRE)– KKR, a leading global investment firm, and GrowSari (the “Company”), a B2B e-commerce platform serving micro, small and medium-sized enterprises (“MSMEs”) in the Philippines, today announced the signing of definitive agreements under which KKR will invest US$45 million to lead GrowSari’s Series C funding round. KKR’s investment in GrowSari will support the Company’s expansion into more regions across the Philippines and strengthen its financial services capabilities.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220125005949/en/

Founded in 2016, GrowSari is a leading tech-enabled B2B platform that helps the Philippines’ small physical retail stores, including neighborhood retail shops (sari-sari stores), roadside and market shops (carinderia), and pharmacies, enhance their service levels and access a wider range of products and value-adding services. This allows the stores to provide local communities with more comprehensive offerings, including digital services.

Today, GrowSari is present in 220 municipalities across the regions of Luzon and offers over a hundred types of different services including making bill payments, telco reloads, and wallet top-ups, as well as procurement services for common retail goods and pharmaceutical medicines. Strong tailwinds around digital adoption, proximity shopping, and economic growth in the Philippines have also contributed to a 6.5x increase in gross merchandise value for GrowSari since 2019 and a 2.5x increase in revenue over the same period. In 2021, the Singapore Venture Capital & Private Equity Association named GrowSari as ‘Venture Capital Deal of the Year.’

Ashish Shastry, Co-Head of Asia Pacific Private Equity and Head of Southeast Asia at KKR, said, “We are pleased to invest in GrowSari, an innovative company with tremendous potential to digitally transform the operations of Filipino MSMEs, who are crucial contributors to the country’s economy and a pillar of the business community. We are excited to support the GrowSari team to achieve their expansion ambitions.”

Speaking on the latest investment, Reymund ‘ER’ Rollan, CEO and Co-Founder of GrowSari, said, “We will be accelerating our presence nationally to more municipalities and cities in the Philippines. Our investments will be focused towards expanding in Visayas and Mindanao this 2022. This will bring us a step closer to our mission of creating a positive socio-economic impact to the lives of more MSME owners and the communities they serve. In addition, we are doubling down on our capabilities to improve the overall customer experience and look to expand our ability to provide sari-sari stores access to credit and basic financial services, which is a key pain point for MSMEs who have limited access. The industry, operational and financial expertise and network of KKR will be a great complement to the passion, dedication and strong culture of excellence that GrowSari has built over the years.”

Louis Casey, KKR’s growth technology lead in Southeast Asia, added, “GrowSari is aligned with one of our core technology investment themes in Southeast Asia, which is supporting MSMEs with software and financial services. Reymund and the team at GrowSari are excellent operators who have built an impressive flywheel that is powered by a number of proprietary applications. They have also built a very efficient and repeatable go-to-market motion that is underpinning their impressive growth. We look to leverage our global experience, regional connectivity and flexible capital to help GrowSari achieve its ambitious growth objectives.”

Prior to KKR’s investment, GrowSari had raised funding from global financial and strategic investors, including Temasek-affiliated Pavilion Capital, Tencent, the International Finance Corporation, the Gokongwei family-controlled JG Summit, Robinsons Retail Holdings Inc., Wavemaker Partners, Saison Capital, and the Investment & Capital Corporation of the Philippines.

The ongoing Series C round is significantly oversubscribed, having drawn keen interest from new and existing investors. The round’s final composition is currently being finalized.

KKR is making its investment in GrowSari from its Asia next generation technology strategy. GrowSari is KKR’s latest investment into companies that augment the digital transformation of MSMEs through software and financial technology. KKR’s global investments in the sector include KiotViet, a merchant platform for MSMEs in Vietnam, Yayoi, a software developer, distributor, and support service provider for small and medium-sized enterprises (“SMEs”) in Japan, MYOB, a leading Australian online business management company, NetStars, the operator of Japan’s largest QR code payment gateway, Qonto, a leading European business finance solution for freelances and SMEs in France, Cegid, one of the largest European providers of enterprise software headquartered in France, and Exact Software, a provider of business and accounting software in the Netherlands. Additional details of the transaction are not disclosed.

About KKR

KKR is a leading global investment firm that offers alternative asset management and 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 The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About GrowSari

GrowSari started in 2016 as an ordering platform servicing roughly sari-sari stores in three cities. Today, GrowSari powers the management, growth, and analytics infrastructure across 220 municipalities and is now further expanding. In addition to providing credit and affordable, on-demand inventory, GrowSari’s platform also generates crucial data & insights into the operations of these stores for manufacturers and distributors to build their strategies and campaigns upon. GrowSari has also integrated multiple-microservices such as telco load, bills pay, e-commerce, Wi-Fi and other eservices, allowing store-owners to maximize their capital in one wallet and easily expand their business.

GrowSari is certified as a Great Place To Work® in the Philippines. The GrowSari leadership team is composed of young and dynamic industry leaders who built their expertise from working with global corporations and consultancies including P&G, Unilever, J&J, and Boston Consulting Group as well as Uber, Globe Telecom, and GCash.

For KKR:
Wei Jun Ong
+65 6922 5813
WeiJun.Ong@kkr.com

For GrowSari:
Reynaldo Rubio
(+63) 9190733255
reynaldo.Rubio@growsari.com

Source: KKR

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o9 Solutions Raises $295 Million From Strategic Investors to Continue its Growth Across Industry Verticals & Markets

General Atlantic

General Atlantic, Its BeyondNetZero Venture, and Generation Investment Management Join KKR as Investors in o9, Valuing the Company at $2.7 Billion

January 26, 2022

o9 Solutions, a leading enterprise AI software platform provider for transforming planning and decision-making speed and quality in companies across industry verticals, today announced that it has received equity investments totaling $295 million from General Atlantic, including BeyondNetZero, its climate investing venture, Generation Investment Management, a pure-play sustainability investment manager, and existing investor KKR. This significant investment will help o9 build on its momentum and accelerate growth for its AI-powered Integrated Business Planning platform it calls the “Digital Brain” across industry verticals and markets. It will also help o9 drive continued innovation in R&D, industry knowledge models and partner ecosystem development that will help companies implement o9’s game-changing platform faster and realize greater value.

Today, leading companies across varied industry verticals that include retail, consumer and industrial products manufacturing, high-tech and semiconductor, life sciences, automotive, telecom, and oil and gas leverage o9’s Digital Brain platform for transforming their supply chain, commercial and integrated business planning capabilities. These companies are using o9’s Digital Brain platform to build a live, digital model of enterprise data and knowledge that helps them detect demand and supply risks and opportunities, forecast demand more accurately, and evaluate what-if scenarios all in real time. By matching demand and supply intelligently and driving greater alignment and collaboration between customers, internal stakeholders and suppliers across the integrated supply chain, clients can realize significant value from their commercial plans and decisions while making measurable positive impact to the environment.

“We have an unprecedented opportunity in front of us,” said Chakri Gottemukkala, Co-founder and CEO of o9. “Demand and supply volatility and complexity has been growing and the pandemic has only accelerated the challenges companies face in meeting customer service and financial goals. At the same time, there is significant pressure on boards and executives from customers and employees to also drive meaningful improvements in sustainability goals. And we believe that o9 is poised perfectly to help companies deal with these mega trends with a differentiated, proven platform.

Executives are increasingly seeing that transforming planning and decision-making capabilities need to be more agile, and integration is the most mission critical, high-value initiative going forward. And because global supply chains are the majority source of environmental impact, we believe transforming planning is key not just for improving P&Ls, but also the health of the planet. The new investments and strategic partnerships with General Atlantic’s BeyondNetZero and Generation Investment Management, along with our established strategic partnership with KKR, will help us accelerate this sacred mission of making the o9 Digital Brain the most value-creating enterprise platform.”

General Atlantic’s BeyondNetZero and Generation Investment Management join KKR as investors in o9, valuing the company at $2.7 billion. This marks an increase from the $1 billion valuation in April 2020 at the time of the company’s first-ever external investment led by KKR, which is also participating in this funding round. This capital raise follows a record year during which the company reported a greater than threefold increase year-over-year in annual recurring revenue (ARR) from new customers.

“Not only is an agile, intelligent and resilient supply chain one of the most important growth accelerators, it also inherently leads to a reduced carbon footprint – especially for organizations that operate on a global scale,” said Sanjiv Sidhu, Chairman and Co-Founder, o9. “A sustainable supply chain requires companies to digitally transform their planning and decision-making capabilities. o9’s Digital Brain platform makes us the partner of choice for companies across the world and we are pleased and honored that General Atlantic’s BeyondNetZero and Generation Investment Management recognize this at such a pivotal phase of our growth trajectory.”

“We believe that o9 is uniquely positioned at the intersection of technology, supply chain, and sustainability,” said Tanzeen Syed, Managing Director, General Atlantic. “The business fits squarely within our theses at General Atlantic and BeyondNetZero to support companies that are leveraging innovation to tackle some of the most pressing issues in the world. o9 helps large organizations transform their costly, complex and resource-intensive supply chains into profitable and environmentally sound models – playing a critical role in enabling them to work toward net zero targets.”

Joy Tuffield, Partner in the Growth Equity strategy at Generation Investment Management, said, “Generation’s brand is predicated on the belief that long-term commercial opportunity is synonymous with sustainable outcomes. We believe the best businesses stand for something significant. Sustainability and supply chain issues have never been more important. o9 is one of the rare companies that we believe can help global enterprises leverage the power of digital technologies to deliver on both imperatives. We are excited by the commitment of o9 to be an enduring company with a positive influence on the world, in both what the company does and how it operates.”

To learn more, contact o9 here.

About o9 Solutions, Inc.

o9 offers a leading AI-powered Planning, Analytics & Data platform called the Digital Brain that helps companies across industry verticals transform traditionally slow and siloed planning into smart, integrated and intelligent planning and decision making across core supply chain, commercial and P&L functions.

With o9’s Digital Brain platform, companies are able to achieve game-changing improvements in quality of data, ability to detect demand and supply risks and opportunities earlier, forecast demand more accurately, evaluate what-if scenarios in real time, match demand and supply intelligently and drive alignment and collaboration across customers, internal stakeholders and suppliers around the integrated supply chain and commercial plans and decisions. Supported by a global ecosystem of partners, o9’s innovative delivery methodology helps companies achieve quick results in customer service, inventory and resource utlilzation and ESG and financial KPIs while building a long-term, sustainable transformation of end-to-end planning and decision-making capabilities. For more information, please visit www.o9solutions.com.

About BeyondNetZero, the Climate Investing Venture of General Atlantic

The BeyondNetZero team seeks to invest in growth companies delivering innovative climate solutions and aims to help them achieve scale. BeyondNetZero looks to identify companies that have the potential to meet and exceed net zero emissions targets, with a focus on decarbonization, energy efficiency, resource conservation and emissions management. BeyondNetZero combines General Atlantic’s growth equity experience with a global team of proven climate investors, advisors and industry executives, including Lord Browne of Madingley, who serves as Chairman of BeyondNetZero. This diverse team of experts brings decades of experience in both addressing climate-focused problems and building pioneering growth companies. For more information on BeyondNetZero, please visit the website: https://beyond-net-zero.com.

General Atlantic is a leading global growth equity firm with more than four decades of experience providing capital and strategic support for over 445 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic currently has over $86 billion in assets under management inclusive of all products as of September 30, 2021, and more than 215 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, Singapore and Stamford. For more information on General Atlantic, please visit the website: www.generalatlantic.com.

About Generation Investment Management 

Generation Investment Management LLP is dedicated to long-term investing, integrated sustainability research and client alignment. It is an independent, private, owner-managed partnership established in 2004 and headquartered in London, with a U.S. office in San Francisco. Generation Investment Management LLP is authorised and regulated in the United Kingdom by the Financial Conduct Authority. www.generationim.com.

Media Contacts

Mary Armstrong & Casey Gunkel
BeyondNetZero (General Atlantic)media@generalatlantic.com

Jenni Ottum
o9 Solutions480-231-4887jennifer.ottum@o9solutions.com

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Egeria acquires Isoplus, to support its next growth phase

Egeria

Amsterdam / Munich / Rosenheim – 26th January 2022 – Egeria acquires Isoplus, a leading manufacturer of pre-insulated district heating piping systems.

Egeria, an independent pan-European investment company, announced that it will acquire 100% of the shares of Isoplus. Isoplus, headquartered in Germany, is a leading provider of pre-insulated piping systems, mainly for district heating. The current management will invest a minority stake in the company and will continue to lead the business. The acquisition is subject to customary closing conditions and is expected to be finalized in the first quarter of 2022. Financial details of the transaction have not been disclosed.

Isoplus was founded in 1974 and has developed into a market leading player in the European market for district heating. The company operates 8 production locations, employs c. 1,200 employees, and is active in over 30 countries.

District heating is seen as key element in the transition towards CO2-neutral heat generation. Isoplus is well positioned to contribute to and benefit from this attractive market with strong momentum, driven by a clear need for expansion of green heating. The investment by Egeria provides the company with the financial backing and operational support to accelerate growth and further grow the company as a leading provider of sustainable services for green heat across Europe.

Hannes Rumer, Managing Partner DACH at Egeria in Munich: “We are impressed by Isoplus’ growth track record. Through continuous entrepreneurship, Isoplus has built a leading position in an attractive market. Isoplus is a strong platform for future growth, and we aim to further strengthen its position as a leading provider of sustainable green heat solutions. We look forward to partnering with management and supporting the company during the next growth phase.”

Wolfgang Blumschein, Roland Hirner, and Jörg Kauschat, Isoplus Management: “We are glad that Egeria will become the new main shareholder of Isoplus. Over the past years we have continuously developed Isoplus into one of the market leaders for district heating pipes. We believe Isoplus is ready to accelerate growth as a provider of sustainable heat services and see Egeria as the ideal partner to realize the next growth phase.”

About Isoplus Group
Isoplus is a leading provider of pre-insulated piping systems, mainly for district heating. In addition to heat-insulated pipes, Isoplus also provides joint installation services and coating services for other industrial pipes and products. The company’s offering includes planning, project management, production, support during construction, installation, documentation, and network monitoring. The company has a dispersed customer base of local utility providers, municipalities, and contractors, which it services through a direct sales model.
For more information on Isoplus, please visit: www.isoplus-pipes.com

About Egeria
Egeria is an independent pan-European investment company founded in 1997, which focuses on medium-sized companies. Egeria invests in healthy companies with growth potential. Egeria believes in building businesses jointly with entrepreneurial management teams (Boldly Building Together). Egeria Private Equity Funds have interests in 13 companies in the Netherlands and the DACH region, while Egeria Evergreen has investments in 7 companies. Egeria’s portfolio companies generate combined revenues of more than EUR 2.4 billion and employ circa 12,500 people. Other activities include Egeria Real Estate Investments, Egeria Real Estate Development and Egeria Listed Investments. In 2018 Egeria launched “Egeriado“, a corporate giving program that supports projects in the world of art, culture, and society.
For more information on Egeria, please visit: www.egeriagroup.com

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Eurazeo invests in Cranial Technologies, the market leader in treating Infant Plagiocephaly

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Eurazeo

New York, 26 January 2022
Eurazeo, through its Mid-Large Buyout strategy, today announced it has acquired a majority stake
in Cranial Technologies, the market leader in treating infant plagiocephaly (commonly known as
“Flat Head Syndrome”). Eurazeo is investing over $200 million alongside an equity rollover from
the existing management team.

Founded in 1986, Cranial Technologies is the leading treatment provider and manufacturer of
helmets used for treating infants with various forms of plagiocephaly, brachycephaly and
scaphocephaly. Plagiocephaly is a common condition that affects nearly half of all babies born
each year. To date, Cranial Technologies has cared for over 300,000 babies using its FDA-approved
DOC Band® cranial orthotic. The Company delivers its helmets through 80 locations based in the
US, which it operates to treat patients directly, in addition to six licensed clinics internationally.
Eurazeo’s investment will support Cranial Technologies’ expansion across the US and other key
international markets by increasing awareness and expanding its clinical locations, in addition to
extending its product offerings into complementary business lines. Its strong pediatrician referral
network and custom manufacturing capabilities are solid strategic assets for Cranial Technologies’
development.

Marc Frappier, Member of the Executive Board, Managing Partner of Mid-Large Buyout, commented:
“We are delighted to announce the acquisition of Cranial Technologies, the fifth investment
for Eurazeo’s Mid-Large buyout strategy in the US. We are proud to be the partner of choice
for mid-sized companies with strong development ambitions. With Eurazeo, Cranial
Technologies will benefit from a deep healthcare expertise, a team of committed experts,
a global network and financial resources.”

Eric Sondag, Managing Director, Eurazeo, Mid-Large Buyout stated:
“Cranial Technologies is an industry leader that has pioneered a solution for a common
condition for infants, ensuring they reach their early development milestones
successfully. Debbie and her team have built a business centered on delivering superior
outcomes for patients and their families, which is evident in their customer satisfaction
metrics and loyalty with prescribing physicians. We’re pleased to partner with Debbie and
the rest of the management team to raise awareness of plagiocephaly and bring Cranial
Technologies’ outstanding products and top-rated care to growing families.”

Debbie James, CEO of Cranial Technologies, said:
“Since Cranial Technologies was founded over 30 years ago, our mission has been to
provide the best possible treatment, experience and outcome for every family who seeks
our care. We are excited to work with Eurazeo, a partner not only with an impressive track
record in scaling companies, but one who believes in our mission alongside our team.
Together, we look forward to welcoming new families around the world to our clinics. “

EURAZEO’S DEEP HEALTHCARE EXPERTISE PROVIDES LAUNCHPAD FOR INTERNATIONAL
GROWTH
With over 12% of private equity assets under management invested in the Healthcare sector,
Eurazeo provides deep industry expertise alongside financial and human capital to help mediumsized
Healthcare companies realize their growth potential.
Eurazeo’s Healthcare portfolio includes, in particular, DORC, a leading producer of opthalmic
surgery instruments and equipment, and Peters Surgical, manufacturer of single-use sterilized
surgical devices, in addition to multiple Digital Health and Biotech companies, all pursuing
increased digitization and global expansion in partnership with Eurazeo.
In addition, Eurazeo holds a majority stake in Kurma Partners, a French venture capital firm
specializing in biotechnology and medical innovation, and manages the Nov Santé fund on behalf
of the French Insurance Federation (FFA) and Caisse des Dépôts, created to accelerate the
digitization of the French healthcare industry.

ABOUT EURAZEO
 Eurazeo is a leading global investment company, with a diversified portfolio of €27 billion in
assets under management, including nearly €19.2 billion from third parties, invested in
450 companies. With its considerable private equity, venture capital, private debt as well as
real estate and infrastructure asset expertise, Eurazeo accompanies companies of all sizes,
supporting their development through the commitment of its nearly 300 professionals and
by offering deep sector expertise, a gateway to global markets, and a responsible and stable
foothold for transformational growth. Its solid institutional and family shareholder base,
robust financial structure free of structural debt, and flexible investment horizon enable
Eurazeo to support its companies over the long term.
 Eurazeo has offices in Paris, New York, Sao Paulo, Seoul, Shanghai, Singapore, London,
Luxembourg, Frankfurt, Berlin, Milan and Madrid.
 Eurazeo is listed on Euronext Paris.
 ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA

ABOUT CRANIAL TECHNOLOGIES
 Founded in 1986, Cranial Technologies has provided plagiocephaly treatment to over 300,000
babies in 80 U.S. treatment centers. Our mission is to provide the best possible treatment,
experience and outcome for every family who seeks our care. Cranial Technologies invented
the DOC Band®, the first FDA-cleared cranial orthotic, and the DSi® (Digital Surface Imaging)
system. For more information, visit : www.cranialtech.com.

EURAZEO CONTACT
Virginie Christnacht
HEAD OF COMMUNICATIONS
vchristnacht@eurazeo.com
+33 (0)1 44 15 76 44
Pierre Bernardin
HEAD OF INVESTOR RELATIONS
pbernardin@eurazeo.com
+33 (0)1 44 15 16 76
PRESS CONTACT
Julia Fisher
EDELMAN
Julia.Fisher@edelman.com
+1 646 301 2968

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CVC Credit supports the acquisition of Pharmathen by Partners Group

CVC Capital Partners

CVC Credit is pleased to announce that it has co-arranged the unitranche debt facilities, featuring an ESG margin ratchet, to support Partners Group’s acquisition (on behalf of its clients) of Pharmathen, a leading European pharmaceutical company, which closed on 20 January 2022. CVC Credit will support the continuing growth strategy of the business through its European Direct Lending Strategy, which focuses on lending to established European medium and large companies with proven business models.

Founded in 1969, Pharmathen is a leading contract development and manufacturing organization (“CDMO”) specialized in advanced drug delivery technologies for complex generic pharmaceutical products. With best-in-class research and development (“R&D”) expertise, the company is a specialist in “sustained release” technologies that improve patient compliance and have led to a broad portfolio of products ranging from slow-releasing oral medicines, ophthalmics, to innovative long-acting injectables. Pharmathen’s differentiated business-to-business model serves a blue-chip customer base of more than 215 generic pharmaceutical companies from two manufacturing facilities in Greece. The company’s highly diversified product portfolio of c.80 commercialized products are supplied to patients in more than 85 countries worldwide.

Miguel Toney, Partner at CVC Credit, commented: “CVC Group’s network was invaluable to our work on Pharmathen’s financing. Notably, the private equity healthcare and local teams’ experience and insight of the market confirmed Pharmathen’s credentials as an industry-leading provider with an R&D-led approach and an unmatched first-to-market track record. We are pleased to support Partners Group and Pharmathen’s high quality management team to execute the company’s exciting growth plans.”

 

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Bridgepoint sells Element Materials Technology

Bridgepoint

25th January 2022 – Element Materials Technology Group (Element or the Group), a global leader in testing, inspection, and certification (TIC) services, has been acquired by Temasek from Bridgepoint. Temasek, a global investor headquartered in Singapore, has been a minority shareholder in Element since 2019. The Group generates annual revenues of c.$1 billion and has grown at over 20% a year over the last ten years. The transaction value has not been disclosed and the transaction remains subject to customary regulatory approvals.

Operating in technically demanding and highly regulated sectors, Element is well positioned to further accelerate its growth as it builds stronger positions in end-markets, such as life sciences and connected technologies. The Group also benefits from strong global ESG tailwinds – with over 60% of its work already directly supporting customers on their sustainability journeys, it will continue to strengthen its position across the global TIC industry.

Element can trace its origins back 190 years, and now operates a global network of more than 200 laboratories across 30 countries, servicing thousands of customers in life sciences, connected technologies, aerospace, transportation, energy transition, built environment, and beyond. Element works with customers across a wide spectrum – from testing the next generation of aircraft and autonomous vehicles, to vaccine component testing in its US pharmaceutical laboratories; from the certification of smartphones and wearable technologies, to providing cellular carrier approvals and testing connected robots.

Headquartered in London, UK, Element’s team of over 7,000 scientists, engineers, and technologists support customers from early R&D, through complex regulatory approvals and into production, ensuring their products are safe and sustainable.

Element recently achieved the best ESG rating of any major TIC company globally, placing in the top 1.5% of all companies rated for ESG by Sustainalytics. Element’s 10.5 corporate ESG rating reflects its industry-leading ESG systems, management, and commitments, which include setting science-based climate targets and achieving net zero emissions across its entire business by 2035.

Allan Leighton, Non-Executive Chairman of Element, said: ‘Element has a highly talented management team and exceptional people across our offices and laboratories around the world. This transaction is a testament to their skills and commitment and creates the launchpad for the next exciting horizon of growth for the company.’

Jo Wetz, CEO of Element, said: ‘The acquisition of Element by Temasek is a landmark transaction in the TIC sector, and a critical step in the development of the Group. We have grown from 20 locations and 600 colleagues ten years ago, to over 7,000 talented experts operating across 200 locations, and are ambitious to continue our rapid growth in the sector.

Bridgepoint has been an exceptional partner, helping to support a ten-fold increase in our turnover over the past decade. We are delighted to expand our relationship with Temasek – their intimate understanding of the Group and their track record of enabling businesses with sustainability at their core will help to accelerate the growth of our business in the years ahead.’

“I am extremely proud of what Element and its outstanding team have delivered. The business has been bold in its ambition, delivered impressive organic growth, and has been clinical in its acquisition strategy – allowing it to significantly expand its expertise for over 50,000 customers worldwide. It is now an undisputed heavyweight in Testing, Inspection and Certification, and we wish the team of 7,000 people continued success in the future’, said Chris Busby, partner at Bridgepoint.

Uwe Krueger, Temasek’s Head Industrials, Business Services, Energy & Resources; and Head, Europe, Middle East & Africa said: ‘We are pleased to continue our relationship with Element as it works with its customers and explores greater opportunities to be part of their decarbonisation and sustainability journeys. As a leading TIC business, Element is at the forefront of enabling innovative solutions across various industries.’

Element was advised by Bank of America Securities, Goldman Sachs and Rothschild & Co (M&A), A&O (legal), EY (finance and tax), BCG (commercial), DLA, Jamieson and PwC (management advisors).

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Strategic Lease Partners Acquires $780 Million in Net Leased Properties in Q4 2021 for KKR

KKR

January 24, 2022

NEW YORK–(BUSINESS WIRE)– Strategic Lease Partners (“SLP”), a platform launched by global investment firm KKR to acquire a diversified portfolio of triple-net lease (NNN) real estate, closed six transactions in the fourth quarter of 2021 for a total of $780 million. SLP is working closely with KKR’s real estate, credit and capital markets teams to underwrite a wide range of mission-critical properties and deliver customized sale-leaseback solutions for a group of high quality corporate and sponsor-backed tenants. The platform is initially targeting to acquire more than $3 billion in assets, primarily capitalized through KKR’s credit and real estate funds.

“SLP has built great momentum in its first few months of operation,” said Peter Sundheim, Managing Director on KKR’s real estate team. “We are delighted with the exceptional quality and diversification of the assets SLP has acquired for our NNN portfolio.”

Michelle Hour, Director on KKR’s credit team added, “SLP’s ability to invest in deals of all sizes and to utilize its access to the KKR platform to deliver strong underwriting with speed and certainty is clearly resonating with sponsors and corporate tenants seeking to unlock the value of their real estate.”

The six transactions SLP closed last quarter followed the platform’s launch in August 2021 and consisted primarily of mission critical industrial assets, with a focus on sale-leasebacks (SLBs) for private equity-backed companies with durable business models. The transactions ranged in size from under $15 million for an individual property to over $500 million for a portfolio and included both domestic and cross-border portfolios. SLP’s acquisitions comprised 31 individual assets across nearly 5.4 million square feet with a weighted average lease term (WALT) of over 16 years, while over half of the portfolio holds LEED designation.

SLP’s Q4 2021 acquisitions include the following transactions:

  • A 20-property, multi-state manufacturing and distribution portfolio that is majority LEED certified and leased to a global beverage brand on a long-term basis
  • A four-building manufacturing portfolio across major Canadian and United States markets leased to a leading North American retail and food services company
  • An approximately 50,000-square foot, LEED Platinum office building in Connecticut leased to an international investment firm
  • A four-building manufacturing portfolio across New Jersey, Georgia and Wisconsin leased to a plastics company
  • An approximately 350,000-square foot distribution facility in Illinois leased to a health and nutrition brand
  • An approximately 125,000-square foot distribution facility in Tennessee leased to a major wholesale tire distributor

“Our first six purchases are a great representation of the breadth of SLP’s underwriting capabilities,” said Andrés Dallal, Partner at SLP. “Our platform, supported by the institutional expertise and resources of KKR’s team, makes us an ideal partner for companies in need of comprehensive, creative net lease solutions.”

“SLP has the expansive scope and ability to deliver business-empowering sale-leaseback solutions for a full array of asset types, from single-tenant deals to multi-property portfolios across regions,” added Joseph Mastrocola, Partner at SLP. “As we look to continue building on our momentum over the coming months, we are excited to close investments that deliver value in an appreciating and evolving commercial and industrial market.”

SLP is actively continuing to seek investments including SLB transactions, net-leased property and portfolio acquisitions and forward takeouts of built-to-suit developments. SLP evaluates all property types across the credit spectrum, with a focus on sub-investment grade tenants and transactions between $10 million and more than $1 billion across North America. The firm can be contacted directly at Inquiries@StratLP.com.

About Strategic Lease Partners

Strategic Lease Partners (SLP) is a diversified triple-net lease (NNN) real estate investment platform, which engages the capabilities and resources of KKR’s real estate, credit and capital markets teams to acquire NNN properties and deliver sale-leaseback solutions to corporate tenants. Sponsored by global investment firm KKR, SLP provides tenants from a wide-range of industries with reliable ownership and long-term leasing for their mission-critical real estate. For more information, please visit www.stratlp.com.

About KKR

KKR is a leading global investment firm that offers alternative asset management and 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 The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Business Inquiries:
Inquiries@StratLP.com

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

Source: KKR

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