Category Archives: News

PayPal and KKR Announce Exclusive Multi-Year Relationship for European Pay Later Receivables

KKR

KKR to purchase up to €40 billion of eligible current and future PayPal Pay Later loans originated in Europe

PayPal expects to allocate approximately $1 billion to incremental share repurchases this year; updated outlook from approximately $4 billion to approximately $5 billion in total share repurchases in 2023

SAN JOSE, Calif. and NEW YORK, June 20, 2023 /PRNewswire/ — PayPal Holdings, Inc. (NASDAQ: PYPL) and KKR, a leading global investment firm, today announced the signing of an exclusive multi-year agreement for a €3 billion replenishing loan commitment under which private credit funds and accounts managed by KKR will purchase up to €40 billion of buy now, pay later (BNPL) loan receivables originated by PayPal in France, Germany, Italy, Spain, and the United Kingdom. Under the terms of the agreement, KKR’s private credit funds and accounts will acquire substantially all the European BNPL loan portfolio held on PayPal’s balance sheet at the close of the transaction and will also acquire future originations of eligible BNPL loans. PayPal will remain responsible for all customer-facing activities, including underwriting and servicing, associated with its European BNPL products.

While the concept of split installment payments for consumer purchases has been around for decades and online consumer financing has been a strategic offering of PayPal since 2008, BNPL has dramatically increased in popularity over the past several years. Since launching its first BNPL offering in 2020, PayPal has become an industry leader with its PayPal Pay Later products, issuing more than 200 million loans to over 30 million customers in eight markets around the world. In 2022, PayPal processed more than $20 billion of BNPL payment volume globally, up approximately 160% from 2021.

“Buy now, pay later has become a major asset to PayPal’s checkout experience, driving engagement, payment volume growth, and repeat use while delivering high-value customers to our merchants,” said Gabrielle Rabinovitch, senior vice president, acting chief financial officer of PayPal. “Our collaboration with KKR will allow us to accelerate our PayPal Pay Later originations alongside market demand in Europe while preserving free cash flow for other strategic initiatives. This transaction is yet another example of our disciplined approach to capital allocation.”

KKR is funding the transaction through its private credit funds and accounts.

“Having the ability to work exclusively with a scaled and high-quality strategic partner like PayPal is a testament to the strength and maturity of our Asset-Based Finance business,” said Dan Pietrzak, global head of private credit at KKR. “We look forward to growing our relationship further and serving the financing needs of consumers across Europe through this transaction.”

“We are thrilled to deepen our footprint in consumer finance through this transaction and to work with one of the leading players in this space,” said Vaibhav Piplapure, a managing director at KKR. “We believe that PayPal Pay Later offers a differentiated experience that positions PayPal to capture additional share in this growing market.”

Subject to certain conditions, this transaction is expected to close in the second half of 2023. Upon closing, PayPal expects this transaction to initially generate approximately $1.8 billion of proceeds to be used for a combination of increased capital return to shareholders and general corporate purposes. The transaction is already contemplated in PayPal’s full year 2023 guidance for GAAP and non-GAAP earnings per share, and non-GAAP operating margin announced on May 8, 2023. Following closing, PayPal expects to allocate approximately $1 billion to incremental share repurchases in 2023, contributing to an updated outlook of approximately $5 billion in total share repurchases this year.

KKR Capital Markets structured and arranged the debt for the transaction. Morgan Stanley & Co. LLC acted as the financial and structuring advisor to PayPal. Freshfields Bruckhaus Deringer LLP, Pérez-Llorca, and Allen & Overy Luxembourg acted as legal advisors to PayPal. Latham & Watkins LLP served as legal counsel to KKR.

About PayPal
PayPal has remained at the forefront of the digital payment revolution for more than 20 years. By leveraging technology to make financial services and commerce more convenient, affordable, and secure, the PayPal platform is empowering hundreds of millions of consumers and merchants in more than 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com.

Forward Looking Statements About PayPal
This announcement contains “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements and information relate to future events and future performance and reflect, among other things PayPal’s expectations regarding the anticipated benefits of this transaction, the timing of the closing of the transaction, and anticipated incremental share repurchases. Forward looking statements may be identified by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “continue,” “strategy,” “future,” “opportunity,” “plan,” “project,” “forecast,” and other similar expressions.

Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from the statements made, and, accordingly, readers should not place undue reliance on forward-looking statements and information. Factors that could cause or contribute to such differences include, but are not limited to, the failure to satisfy the conditions to the completion of the transaction and the acquisition of future originations, the possibility that the transaction may not be completed in a timely manner or at all, the reaction of competitors to the transaction, economic and political conditions, including in the relevant markets, the future growth of PayPal’s BNPL business, and the possibility that operationalizing the transaction post-closing may be more difficult than expected.

More information about these and other factors that could adversely affect PayPal’s results of operations, financial condition and prospects or that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in PayPal Holdings, Inc.’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (the “SEC”), and its future filings with the SEC.

The forward-looking statements contained in this announcement speak only as of the date hereof.  PayPal expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.

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

Contacts

Investors

For PayPal:
investorrelations@paypal.com

Media

For PayPal:
Josh Criscoe, Taylor Watson and Sabrina Winter
mediarelations@paypal.com

For KKR:

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

KKR EMEA:
Annabel Arthur
+44 20 7839 9800
kkrpr-uk@kkr.com

 

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BPEA EQT led consortium to acquire HDFC Credila – India’s largest non-bank education loan specialist, enabling academic studies for the country’s growing young population

eqt
  • BPEA EQT led consortium to acquire HDFC Credila, India’s leading provider of tailored financing solutions for students pursuing academic studies in India and abroad
  • HDFC Credila empowers India’s growing young population by enabling aspiring students to actualize their dreams of a higher education – having helped more than 124,000 youths enroll to 4,100 academic institutions in 59 countries to date
  • The BPEA EQT led consortium also plans to invest INR 20bn primary capital in HDFC Credila to support its next phase of growth and accelerate its digital transformation, while strengthening its footprint in existing markets, leveraging BPEA EQT’s long experience and proven track record in the education sector
  • The investment marks the largest ever private equity buyout transaction in the financial services sector in India

EQT is pleased to announce that BPEA Private Equity Fund VIII (“BPEA EQT”), alongside partner co-investor ChrysCapital have agreed to acquire a 90 percent stake of HDFC Credila (the “Company”) for INR 103.5 billion pre-money valuation from its parent company Housing Development Finance Corporation Ltd. (“HDFC”), which will retain a 9.99 percent stake. HDFC Group is one of India’s leading financial conglomerates with interests in housing finance, banking, life insurance, general insurance, asset management, real estate venture funding, and education loans.

Headquartered in Mumbai, India, HDFC Credila is the country’s first and largest dedicated education loan company, supporting tens of thousands of Indian students every year with tailored financing solutions for undergraduate and postgraduate studies. Since its establishment in 2006, HDFC Credila has helped more than 124,000 students enroll to approximately 4,100 universities and academic institutions across 59 countries globally, primarily in the U.S., Canada, the U.K., and Australia, with a higher focus on STEM courses.

There is a growing demand for quality higher education among India’s expanding middle class, which today makes up approximately a third of the country’s 1.4 billion population. With that demand underserved in India, parents and students increasingly look overseas for higher education, and the outflow of Indian students is expected to grow by around 10 percent annually over the coming years. This trend is also driven by favorable immigration policies in developed countries to solve talent shortage due to an aging population, especially for STEM talent, and demand from international universities to increase diversity.

The BPEA EQT led consortium will infuse INR 20 billion of primary capital in HDFC Credila to support its next phase of growth while maintaining the core focus on funding postgraduate studies for Indian students. BPEA EQT aims to accelerate the Company’s digital transformation, leveraging EQT’s in-house digitalization expertise, solid track record within cyber security and credit underwriting, as well as its proven go-to-market capabilities within banking and loan management.

Moreover, BPEA EQT aims to grow HDFC Credila’s footprint and strengthen partnerships with academic institutions in existing and prospective markets, drawing on its long experience in the education sector, having supported its portfolio company Nord Anglia Education’s expansion across 33 countries over the past 15 years, and recently acquired IMG Academy, a world-leading sports education institution in the U.S.

Jimmy Mahtani, Partner and Head of BPEA EQT India, commented, “The demand in India for obtaining a higher education is growing at a faster pace than ever, accelerated by our country’s growing middle class and students’ strive for better career opportunities. Coming out of HDFC Group, one of India’s most respected and well-established financial conglomerates, HDFC Credila plays a critical part in serving this demand. We have been following HDFC Credila for several years and we are excited to partner with its strong management team led by Arijit Sanyal. We also welcome HDFC Group’s decision to retain a minority stake in the business and we see their continued support as a testament to our vision for the company. Looking ahead, BPEA EQT plans to accelerate HDFC Credila’s digital transformation and invest significantly in the Company’s continued growth.”

Arijit Sanyal, CEO of HDFC Credila, said, “Having established ourselves as the largest NBFC in the education finance sector in India, we are delighted to welcome our new investors BPEA EQT and ChrysCapital. Our association with such marquee investors is expected to fuel the next chapter in HDFC Credila’s journey and enable us to scale new heights. We also welcome HDFC’s decision to retain 9.99 percent stake in the Company and look forward to our continued association. I would like to thank all our stakeholders and employees for their continued support. I am extremely optimistic about our future and look forward to the next steps.”

Kosmo Kalliarekos, Partner and Co-Head of Education within BPEA EQT’s Advisory Team, concluded, ”We all know how important education is to get a good start in life. It goes beyond one’s personal development and career as it helps build a better society for future generations. BPEA EQT is proud to support HDFC Credila on its mission to empower aspiring students to achieve their dreams of academic studies, and it resonates well with EQT’s purpose to make a positive impact through our investments. HDFC Credila marks BPEA EQT’s second education investment this year following IMG Academy and we look forward to contributing with our sector experience and networks to ensure that more youths are given access to a good education.”

BPEA EQT was advised by Arpwood Capital, E&Y (financial, tax, ESG, and technology), Awelin (digital),  and JSA (legal).

With this transaction, BPEA Private Equity Fund VIII is expected to be 25-30 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About BPEA EQT
BPEA EQT is part of EQT, a purpose-driven global investment organization in active ownership strategies. BPEA EQT combines the private equity teams from Baring Private Equity Asia (BPEA) and EQT Asia, creating a comprehensive Asian private equity presence with local teams in eight cities across the region, a 25-year heritage, and more than USD 25 billion of capital deployed since inception. In addition to BPEA EQT, EQT’s strategies in the region include EQT Infrastructure and the real estate division EQT Exeter.

More info: www.eqtgroup.com/private-capital/bpea-eqt
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

About HDFC Credila
HDFC Credila Financial Services Limited is a leading, tech-enabled, fast-growing education sector financier in India. Since inception in 2006, HDFC Credila has enabled over 124,000 young aspirants across 59 countries, 4100+ institutes and 2700+ courses to pursue their dreams of higher education in India and overseas. The Company has a proven track record as market and thought leader in the education finance sector.

More info: www.hdfccredila.com

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POLLEN STREET ANNOUNCES £150 MILLION STRUCTURED CREDIT FACILITY WITH ALL-INCLUSIVE ELECTRIC VEHICLE LEASING PROVIDER OCTOPUS ELECTRIC VEHICLES

Pollenstreet

Octopus Electric Vehicles, part of the Octopus Energy Group, has agreed a deal for £150 million of funding from Pollen Street as it continues to offer the best value package for drivers making the switch to an electric car.   

The deal takes Octopus’ total EV funding raised to more than £650 million in just two years. Collectively, these cars will save more than 32,000 tonnes of CO2 per year while on the road  – the equivalent of removing more than 11,500 fossil fuel cars.

The funds will primarily finance Octopus’ flagship EV salary sacrifice offer, which was launched in 2021. Like cycle-to-work but for cars, Octopus’s salary sacrifice helps drivers save 30-40% every month on a brand new electric car. Octopus offers an easy all-in-one service, providing the brand new car, charger and discounted energy tariff.

In the last two years, Octopus has helped more than 3,000 companies launch an electric car employee benefit scheme, with clients including McLaren, Nando’s and Zoopla.

Octopus Electric Vehicles has increased its headcount tenfold since May 2021, creating more than 225 new green jobs across offices in London, Weybridge, Brighton and Manchester. Octopus recently took its expertise to America with the launch of Octopus Electric Vehicles in the US.

Fiona Howarth, CEO of Octopus Electric Vehicles, commented: “Drivers are increasingly seeing the benefits of switching out old gas guzzlers for electric cars. They are great to drive, better for the planet and can save over £1,000 a year in fuel. With demand soaring, we need manufacturers to continue to increase volumes. ”

“With this demand, the UK is ever more attractive for EV charging investment and a destination for new electric car brands. With an amazing heritage in automotive here in the UK, we’re proud to be able to create new jobs in today’s upgraded, greener car market. And as Pollen Street’s commitment shows, leadership from the finance sector can make a real difference.”

Matthew Potter, Partner at Pollen Street Capital, said: “We are excited to partner with Octopus Electric Vehicles to support the expansion of their salary sacrifice scheme. Octopus are an innovative business which has gone from strength to strength and we are delighted to support their next phase of growth.”

Pollen Street is an alternative asset manager with an established platform across private equity and private credit. Pollen Street’s credit strategy is dedicated to senior secured, asset backed investments with a strong track record in providing financing that delivers positive impact, particularly in energy transition. In the last 18 months the firm has completed four transactions that fund the expansion of electric vehicle fleets encouraging the switch to greener transport.

Octopus Electric Vehicles was launched with a simple mission; to make it easy for drivers to switch to clean, electric transport. The business sits within the wider Octopus Energy Group, which is expanding rapidly having received over $1bn in funding over the last two years, giving it a valuation of $5bn.

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Adamant Quanta closes SEK 9.2 million financing round to deliver breakthrough diamond-based atomic clocks

Industriefonden

damant Quanta, a Swedish deep tech startup that has developed innovative diamond-based IC microchips, announced today the successful closure of a SEK 9.2 million financing round. Industrifonden, along with Almi Invest and Navigare Ventures, have invested in the round. The company’s initial technology application focuses on diamond-based atomic clocks, which are more accurate than the current market-leading chip-scale atomic clocks, while smaller, cheaper, and ageless. The new funding will be utilized to further develop and scale the delivery of their first diamond-based chip-scale atomic clocks.

Adamant Quanta is a Swedish quantum technology startup which specializes in the development of diamond-based IC systems for precision timing, sensing and detection. Their flagship product, a chip-scale diamond-based atomic clock, offers unprecedented accuracy and performance. With a focus on innovation and customer requirements,  Adamant Quanta aims to transform the industry with immediately applicable diamond quantum tech solutions for resilient positioning, navigation, and timing applications.

Haitham El-Ella, CEO at Adamant Quanta, states: “We are pleased to have closed this financing round and grateful for the given opportunity to continue developing our diamond-based IP and to deliver our cutting-edge diamond atomic clocks. With this investment, we will be able to scale our product delivery and realize our vision of providing competitive and immediately applicable quantum tech hardware.

Adamant Quanta is committed to continued technological innovation and establishing themselves as leaders in their field. With the successful closure of the financing round, the company will scale and accelerate the delivery of chip-scale diamond systems and strengthen their position in the timing, sensing and detection markets.

Iliam Barkino, Principal at Industrifonden, commented: “What sets Adamant Quanta apart is their innovative use of diamond-based IC microchips to revolutionize time and frequency-based measurements. Their technology offers quantifiable performance improvements in chip-scale atomic clocks as their initial market but has multiple additional measurement applications across various industries. We believe that Adamant Quanta has the potential to disrupt their target sectors, and we are excited to be part of their success story.”

About Adamant Quanta

Adamant Quanta strives to innovate and deliver immediately useful cost- and energy-efficient quantum tech using defects in diamond crystals. Leveraging their extensive experience and know-how, their mission is to serve the timing, sensing, and detection markets with innovative functionalised diamond crystals that utilize their quantum mechanical properties to deliver superior functionality and performance. In collaboration with their industry network and partners, they are poised to deliver their unique diamond-chip systems for both embedded devices and terrestrial/satellite-based infrastructure.

Read more about Adamant Quanta ↗

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Main acquires majority stake in Xential

Main Capital Partners

Main Capital Partners today announced its strategic partnership with Dutch document creation software specialist Xential.

Main Capital Partners today announced its strategic partnership with Dutch document creation software specialist Xential. This partnership has been established to jointly accelerate Xential’s (international) growth. Led by the management team and supported by Main’s expertise, Xential will strengthen its market position and expand its product portfolio to deliver even greater added value to its customers and partners.

Xential, founded in 2009 by CEO Ruud Vos and based in Holten, the Netherlands, is a developer of a SaaS platform for document creation. The company offers solutions to create and manage documents anytime, anywhere, in order to increase control over information. The fast-growing software company serves more than 240+ customers, mainly consisting of (local) government institutions, but also accounting firms and employment agencies. Xential has a strong market position in the Netherlands, as well as 70+ customers in Germany.

Growth acceleration
Xential and Main will cooperate to realise both a national and international growth acceleration. The growth strategy will include deepening and broadening of the product suite, selling (inter)nationally via the internal commercial team and through partners, and exploring opportunities for strategic acquisitions. This strategy will focus on accelerating organic growth, including expanding the partner network and strengthening the international market position. In addition, the organic growth strategy will be complemented with selective strategic combinations with other players in the market.

Ruud Vos, Chief Executive Officer of Xential comments: “In cooperation with Main, we are now opening up opportunities in new verticals in the Netherlands and other European countries. Main’s knowledge and experience, in combination with our expertise in content creation, will allow us to accelerate the realisation of our ambitions. We are aware of our strengths: high-quality software, committed and specialized employees and an approachable service desk. We will certainly keep it that way. Furthermore, for the continuous development of our product, we will soon be able to utilize the knowledge and expertise that Main brings. In short: I see a lot of opportunities to further expand on the strengths of Xential.”

Ivo van Deudekom, Investment Director at Main Capital Partners, adds: “We have known Xential’s management team for many years and are impressed with the way they have successfully built the organisation in a sustainable and fast-growing manner. Xential is a leading software supplier in the document creation market, partly due to a smart partner strategy in both the Netherlands and Germany. Many (international) partners already use Xential private label. For the end-user, this results in seamlessly building output from a process, case application or DMS, without complicated programming knowledge or in-depth knowledge of word processing software. Together with the management team, we see significant additional (growth) potential in the Netherlands, Germany and beyond.”

We have known Xential’s management team for many years and are impressed with the way they have successfully built the organisation in a sustainable and fast-growing manner.

– Ivo van Deudekom, Investment Director at Main Capital Partners

About

Xential

Since 2009, Xential has been developing software for document creation. Companies manage their content, corporate identity and document templates in the platform. “With our software, we fulfil a basic need for our customers: to communicate well with their target groups,” explains CEO Ruud Vos. “We offer the solution for organisations that have complex information management; large document and data flows. In doing so, we standardise processes, increase efficiency and reduce the margin of error. At the same time, our customers can offer their target groups correct, personalised information, at the right time.”

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LEAG and ESS to Develop Clean Energy Hub for Germany

Pangea Ventures

LEAG to develop up to 14 GW of renewable generation paired with 2-3 GWh of energy storage and 2 GW of green hydrogen production

Today, ESS Tech Inc. (NYSE:GWH) (“ESS”), a leading global manufacturer of long-duration energy storage systems, and LEAG, a major German energy provider, signed an initial agreement to accelerate the clean energy transition through the deployment of renewable generation and long-duration energy storage (LDES) using ESS iron flow battery technology.

Following the execution of definitive agreements and normal financial close, anticipated in Q3 2023, LEAG and ESS plan to build a 50 MW / 500 MWh iron flow battery system at the Boxberg Power Plant site, to be commissioned in 2027. The resulting 50 MW/500 MWh module is expected to become a standardized building block in LEAG’s plan to deploy 2-3 GWh of storage in the transformation of the LEAG power plant locations. LEAG and partners plan to invest €200 million with further support anticipated from additional investors and stakeholders.

ESS has developed an iron-based LDES technology which uses safe and sustainable battery chemistry to deliver low-cost, utility-scale energy storage. ESS technology is currently manufactured at the company’s facilities near Portland, Oregon, USA. ESS systems have already been deployed in commercial microgrid systems, with utility-scale projects underway in the USA and Australia.

“We look forward to partnering with LEAG to develop the model for utilities and communities worldwide transitioning from coal to clean, renewable energy,” said Eric Dresselhuys, CEO of ESS. “The deployment of renewables and long-duration energy storage will not only deliver reliable, clean energy to effectively replace the baseload power currently provided by coal, it will deliver economic opportunity and a cleaner environment for Germany.”

LEAG is a leading operator of large-scale lignite mining and coal-fired generation in Eastern Germany that is implementing a vision to transform the coal-dependent region into Germany’s Green Powerhouse. The company plans to develop 7-14 GW of renewable generation paired with 2-3 GWh of energy storage and 2 GW of green hydrogen production. Combined, these technologies will create a net-zero-carbon baseload energy system. When fully operational, LEAG expects to demonstrate a renewable energy system at scale which not only replaces baseload coal generation, but uses short-duration storage, LDES and hydrogen to replace natural gas for grid balancing.

“A key requirement for our transformation into Germany’s Green Powerhouse is the deployment of cost-effective Long-Duration Energy Storage. We are energized to demonstrate the value of iron flow battery technology at scale,” said Thorsten Kramer, CEO of LEAG. “The Energy Resilience Leadership Group and Breakthrough Energy have provided an ideal framework to drive rapid technology development and deployment to meet emissions goals as soon as possible.”

LEAG and ESS have joined the Energy Resilience Leadership Group (ERLG), a multi-stakeholder initiative led by Breakthrough Energy and Siemens Energy that brings together corporate CEOs, political leaders, financial institutions, and startups at the technology frontier. The Group was launched at the 2023 Munich Security Conference with the goal to enhance Europe’s energy resilience by rapidly bringing emerging climate technologies to scale. ERLG forges partnerships between startups and corporates to work towards deploying commercially viable projects within 24 months. The project of LEAG and ESS is one of the projects that the ERLG network is helping to accelerate.

“We are pleased to support a long-term strategic relationship between energy and technology experts LEAG and ESS through the Energy Resilience Leadership Group,” said Philipp Offenberg, Senior Manager, Europe at Breakthrough Energy. “Delivering green baseload power thanks to scalable, long-duration energy storage will not only solve a major challenge to decarbonization. It will also enhance Europe’s energy resilience, because less natural gas will be needed for backup power generation in the future.”

Summary:

U.S. energy storage technology manufacturer ESS Tech, Inc. and German energy provider LEAG cooperate to scale up iron-flow technology to provide long-duration energy storage as part of LEAG’s strategy to become Germany’s Green Powerhouse.

Breakthrough Energy supports the cooperation / project within the programme of Energy Resilience Leadership Group (ERLG).

First phase: demonstration of 50 MW / 500 MWh iron flow battery system at the Boxberg Power Plant to be operational by 2027.

Project expected to catalyze the sustainable transformation of a major German coal mining and energy generation region.

About the Energy Resource Leadership Group:

The Energy Resilience Leadership Group is a multi-stakeholder initiative led by Breakthrough Energy and Siemens Energy that brings together corporate CEOs, political leaders, financial institutions, and startups at the technology frontier. The Group was launched at the 2023 Munich Security Conference with the goal to enhance Europe’s energy resilience by rapidly bringing emerging climate technologies to scale. ERLG forges partnerships between startups and corporates to work towards deploying commercially viable projects.

About ESS Tech Inc.:

At ESS (NYSE: GWH), our mission is to accelerate global decarbonization by providing safe, sustainable, long-duration energy storage that powers people, communities and businesses with clean, renewable energy anytime and anywhere it’s needed. As more renewable energy is added to the grid, long- duration energy storage is essential to providing the reliability and resiliency we need when the sun is not shining and the wind is not blowing.Our technology uses earth-abundant iron, salt and water to deliver environmentally safe solutions capable of providing up to 12 hours of flexible energy capacity for commercial and utility-scale energy storage applications. Established in 2011, ESS Inc. enables project developers, independent power producers, utilities and other large energy users to deploy reliable, sustainable long-duration energy storage solutions. For more information visit www.essinc.com.

[Forward-Looking Statements]

This communication contains certain forward-looking statements regarding ESS and its management team’s expectations, hopes, beliefs, or intentions regarding the future. The words “estimate”, “expect”, “will” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Examples of forward-looking statements include, among others, statements regarding the Company’s ability to execute on orders and the Company’s relationships with customers. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments. Many factors could cause actual future events to differ materially. Except as required by law, ESS is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Contacts

For further information please contact:

LEAG Kathi Gerstner I kathi.gerstner@leag.de I +49 1723497384

ESS Morgan Pitts I morgan.pitts@essinc.com I +1 503-568-0755

Breakthrough Energy Alison Menon I alison@breakthroughenergy.org I + 1 (202) 468 0839

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Ratos company Vestia Construction Group wins new partnering contract with estimated budget of SEK 250m in Kungälv Municipality

Ratos

Vestia Construction Group (Vestia), a part of SSEA Group, will partner with Kungälv Municipality to renovate, rebuild and extend Ytterby School in central Ytterby. The project will provide the school with inclusive, efficient premises that are suited for modern education in a municipality with a growing number of residents. The project encompasses approximately 11,000 square metres, and the budget is estimated at SEK 250m.

Project planning will begin after summer 2023 and production will start in stages during the autumn. The project will be completed by year-end 2025. The oldest section of Ytterby School was built in 1952, and the school currently has space for 600 students from years 7 to 9. When the renovations and extension are complete, the school will be able to accommodate just over 700 students.

Vestia has extensive experience of partnering on school projects where the building stays open during construction. The renovation and extension will be carried out in stages. Affected classes will be moved temporarily and held in modular classrooms on the school premises.

“Buildings that are important to society, such as schools, are built and maintained regardless of the economy. SSEA Group and Vestia’s expertise and niche are especially attractive in this regard. In combination with the recognised efficiency and trustworthiness of their partnering model, this means that the company has a bright future despite a market with uncertain prospects when it comes to, for example, housing construction. We’re pleased to have secured yet another excellent contract,” says Christian Johansson Gebauer, Chairman of the Board of SSEA Group and President Business Area Construction & Services, Ratos.

“I’m proud that we have been entrusted to develop Ytterby School together with Kungälv Municipality. Although the Gothenburg metropolitan area is our home market, this is a new customer for us. Large, complex school projects that require renovations and extensions while the buildings remain in use are an area in which the entire Vestia team is experienced. We look forward to joining forces with Kungälv Municipality’s talented team. Together, we’ll deliver a sustainable educational environment with an eye on the future,” says Christian Wieland, CEO of SSEA Group.

For more information, please contact:
Josefine Uppling, VP Communication, Ratos, +46 76 114 54 21
Christian Wieland, CEO, SSEA Group, +46 70 654 09 30

About Ratos
Ratos is a business group consisting of 16 companies divided into three business areas: Construction & Services, Consumer and Industry. The companies have approximately SEK 32 billion in net sales (LTM). Our business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values: Simplicity, Speed in execution and It’s All About People. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.

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Ardian and Adamo strengthen the company’s financing to consolidate growth in rural areas of Spain

Ardian

The 350 million euro increase in financing is in addition to the 600 million euros that Adamo secured in September 2021
• This financing will support the continuing extension of the operator’s fibre optic network to reach more than 3.4 million homes in rural areas of Spain
• Bank interest in the deal was 1.8 times oversubscribed
• Ardian became a leading shareholder in Adamo in 2022 to support the company’s growth in rural areas with poor broadband internet coverage

Ardian, a world-leading private investment house, and fiber optic operator Adamo are strengthening the company’s financing. Adamo, which has been majority owned by Ardian, has recently signed a €350 million extension to its financing. This is in addition to the existing €600 million financing secured by the company in September 2021, and includes an option to extend by a further €50 million, to reach a total of €1 billion through an uncommitted facility.

This agreement will enable Adamo to continue to grow its network organically, as well as by acquiring other networks, to reach 3.4 million homes in rural Spain in the next few years. This activity will consolidate its position as the leading and fastest-growing fibre optic operator in rural Spain.

The financing will also be used to continue the roll out a new fibre network across rural areas, which was initially supported in 2021 – 2022 by the Ministry of Economic Affairs and Digital Transformation’s Universalization of Digital Infrastructure for Cohesion (UNICO) programme. Adamo will also continue to contribute to bridging the digital gap through its high-speed internet services.

Since its initial investment, Ardian has worked closely with Adamo’s management team to achieve the company’s ambitious objectives and take advantage of growth opportunities in the telecommunications market.

Both this new financing plan and the initial financing secured in 2021, include a “sustainable financing” component, linked to the company’s contribution to reducing the digital divide, improving equality in employment and reducing greenhouse gas emissions.

The transaction was carried out by ING and Société Générale as financial advisors and is supported by a consortium of 11 banks with extensive experience in the financing of fibre optic and telecommunications projects: ING and Société Générale as Bookrunners and Mandated Lead Arrangers; ABN AMRO, HCOB, ICO, Infranity, KFW, Kommunalkredit and SMBC as Mandated Lead Arrangers; EDRAM as Lead Arrangers; and SCOR Investment Partners as Arranger.

Instituto de Crédito Oficial (ICO) and the German banks HCOB and KFW became the new lenders to Adamo. ING and Société Générale acted as financial advisors and Allen & Overy as legal advisor to the company. Clifford Chance acted as legal advisor to the banks. Apex acted as agent.

Evolution of Adamo

In recent years, Adamo has experienced exceptional growth, providing fibre to 2.5 million homes by the end of 2022, and being the first Spanish company to offer 1,000 Mbps fibre-optic services.

The company’s strategy is to roll out its network in rural areas where there is poor high-speed internet access and where other operators often cannot reach. As such, Adamo’s network is open to other operators and currently provides connectivity services via its FTTH network to four of the country’s leading operators and more than 200 local operators.

This unique deployment model, using agreements with local partners, enables it to minimise implementation costs and expand its network at a rapid pace, connecting 30,000 new homes in rural areas every month. Adamo currently has coverage in Catalonia, Cantabria, Castilla-La Mancha, Andalusia, Valencia, Navarre, La Rioja, Galicia, Madrid, Castilla-León, Extremadura, Asturias, Murcia and the Basque Country.

“The market’s enthusiasm and the high level of oversubscription to this financing underline the strength and relevance of Adamo’s business model. This new support will enable us to keep on growing and implementing our strategy to strengthen internet coverage in rural areas of Spain.” Martin Czermin, CEO, Adamo

“We are determined to keep working shoulder to shoulder with a strong management team that fully understands the current fibre needs of rural Spain. We are proud to enter into this new funding agreement which will enable Adamo to continue its strong commitment across the country and help bridge the digital divide where others are failing.” Juan Angoitia, Co-head of Infrastructure Europe, Ardian

ABOUT ADAMO

Based in Barcelona, Adamo is a fibre optic operator present in regional and local areas. Operating in Spain since 2007, the company focuses on rural areas. Adamo was the first operator in Spain to offer 1,000 Mbps fibre-optic services. Using its own infrastructure, Adamo offers internet, fixed and mobile telephony services to residential customers, as well as services to businesses and wholesalers.

adamo.es

ABOUT ARDIAN

Ardian is a world-leading private investment house, managing or advising $150bn of assets on behalf of more than 1,400 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. Private Wealth Solutions offers dedicated services and access solutions for private banks and family offices worldwide. Ardian is part-owned by its employees and places great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 1050+ employees, spread across 16 offices in Europe, the Americas, Asia and Middle East are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility.
At Ardian we invest all of ourselves in building companies that last.

ardian.com

Press contact

ARDIAN

HEADLAND

ardian@headlandconsultancy.com

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Main Capital Partners announces strategic exit of Inergy to ilionx after successful partnership

Main Capital Partners

Main Capital Partners announces the sale of Inergy to ilionx, an IT services provider and integration partner backed by FSN Capital.

Main Capital Partners is pleased to announce the sale of Inergy to ilionx, an IT services provider and integration partner backed by FSN Capital. Over the last 5 years, Inergy has developed a market leading position in managed data analytics and planning & control software, helping its diversified public and private customer base to extract significant value from their data.

Main Capital Partners made its strategic investment in Inergy in 2017. Over the course of Main’s investment period, Inergy has grown from a mid-sized data analytics services provider to a market-leading planning & control software and data analytics services provider it is today. During this time, Inergy’s revenues more than doubled, solidifying its position in the Dutch market.

During its cooperation with Main,  Inergy significantly grew its software and managed analytics businesses both autonomously and via several strategic acquisitions that enhanced the company’s product portfolio and market presence. Inergy is well positioned to further capitalize on these achievements in the coming years and is now supported by ilionx.

Mathijs van Houweninge, CEO of Inergy, comments on the combination with ilionx: “The broader portfolio of the combination enables us to serve our clients and prospects even better. We now have access to a lot of new expertise and experience as well as great execution power on complex issues. With our joint portfolio, knowledge and experience, we will be able to better fulfill our credo ‘We Improve Performance’. This step with ilionx is a wonderful sequel to the buy-and-build phase that we went through with Main in recent years. I am super proud of our Inergeeks and the trust that customers have placed in us every day for many years.”

Jan Veltman, CEO of ilionx, adds: “Inergy is a great addition to the portfolio of ilionx. Especially LIAS’ position in local government strengthens ilionx’ market position in that segment and its strong presence in the retail market also offers many opportunities. Inergy’s managed analytics platform is a natural extension to the data and AI solutions within the ilionx portfolio and with Inergy’s independent audit practice for GRC and privacy, we are not merely enabling clients to get into control of their processes, but also remain in control. Like ilionx, Inergy has the drive to bring simplicity to complex matters. By combining our knowledge and expertise we can add even more value for our mutual clients. We look forward to discovering new opportunities together with our colleagues at Inergy.”

Pieter van Bodegraven, Senior Partner at Main Capital Partners and Member of the Supervisory Board of Inergy, concludes: “We congratulate Inergy on this successful sale to ilionx. We helped to transform Inergy by focusing on the development of SaaS-based software solutions especially related to Financial Control, Risk and GRC-related domains. With strong autonomous growth, as well as with 5 add-on acquisitions, the company has more than doubled its revenues and strongly increased its recurring  profile. We feel ilionx is a perfect new home for Inergy to continue their growth strategy.”

This is a proposed transaction and is subject to consultation of both the works councils of Inergy and ilionx.  The acquisition is expected to be finalized by mid-July 2023. Financial details will not be disclosed.

We feel ilionx is a perfect new home for Inergy to continue their growth strategy.

– Pieter van Bodegraven, Senior Partner at Main Capital Partners and Member of the Supervisory Board of Inergy

About

Inergy

Founded in 1999, Inergy is a provider of governmental software and complex data & analytics platforms. The company has a unique proposition, servicing governmental institutions as well as private enterprises. Inergy helps companies extract value from their data. Over the past years, Inergy executed a successful buy-and-build in the planning & control and GRC software space for local governments through the acquisitions of LIAS Software (April 2018), Frontin (June 2020), Gemstone (November 2020), SafeHarbour (February 2021) and SEP ISMS (March 2021). Together with 170 experts, Inergy executes its motto ‘We Improve Performance’ on a daily basis.

illionx

Creating simplicity in a complex world. That is the goal of IT knowledge and implementation partner ilionx. By innovating, clarifying and connecting. ilionx has been offering IT solutions that work simply and connect closely to organizational processes since 2002. All expertise is available to move organizations forward and to let people work with pleasure. ilionx supports its clients in the field of digital strategy, cloud applications, data & AI, hyperautomation & integration and managed services. This has already led to many successful projects and implementations at healthcare institutions, (semi) governmental organizations and commercial companies with over 500 employees, a Dutch footprint and social relevance. ilionx employs over 1,300 experts, working from thirteen locations throughout the Netherlands.

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Eurazeo provides a unitranche financing for Keensight Capital’s acquisition of Inke

Eurazeo

Eurazeo, through its Private Debt team, joined forces with Keensight Capital to support the acquisition of Inke through a unitranche credit facilty. The transaction is the 8th sponsor-led financing arranged in the Iberian Peninsula.

Set up in 1980 and based in Castellbisbal near Barcelona (Spain), Inke is the leader in micronization of complex Active Pharmaceutical Ingredients (“APIs”). The group has a specialization in inhalation APIs with a differentiated first-to-market approach. Inke combines a high regulatory expertise with close-knit relationships with major pharmaceutical companies worldwide, including in core markets such as the US, the EU and the highly regulated Japanese market.

Arnaud Maisonneuve, Managing Director, Eurazeo said:

« Inke has established itself as a leading manufacturer of complex micronized bronchodilators, demonstrating a high consistency of compliance, quality and differentiated capabilities to serve a blue-chip and global customer base. We feel confident that Inke will prosper and continue to expand its portfolio of APIs and its end-markets with the support of Keensight Capital. »

ABOUT EURAZEO
• Eurazeo is a leading global investment company, with a diversified portfolio of €35 billion in assets under management, including nearly €24.7 billion from third parties, invested in around 600 companies. With its considerable private equity, 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 410 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, London, Frankfurt, Berlin, Milan, Madrid, Luxembourg, Shanghai, Seoul, Singapore and Sao Paulo.
• Eurazeo is listed on Euronext Paris.
• ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA

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