Category Archives: News

KKR Leads Investment in Arevia Power

KKR

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

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

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

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

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

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

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

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

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

About Arevia Power

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

About KKR

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

About GCM Grosvenor

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

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

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

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

Source: KKR

Categories: News

Tags:

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

Adelis Equity

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

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

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

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

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

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

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

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

About Adelis Equity Partners

Adelis is a growth partner for well-positioned, Nordic companies. Adelis partners with management and/or owners to build businesses in growth segments and with strong market positions. Since raising its first fund in 2013, Adelis has been one of the most active investors in the Nordic middle-market, making 35 platform investments and more than 150 add-on acquisitions. Adelis today manages approximately €2.5 billion in capital. For more information, please visit www.adelisequity.com.

Categories: News

Tags:

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

Aurora Capital

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

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

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

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

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

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

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

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

Contacts:

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

SOURCE Aurora Capital Partners

Categories: News

Tags:

CVC Credit prices second new CLO in a month

CVC Capital Partners

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

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

Quotes

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

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

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

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

Categories: News

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

Apax

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

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

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

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

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

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

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

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

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

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

Categories: News

Tags:

Partners Group to acquire a significant minority stake in VelocityEHS

CVC Capital Partners
  • Partners Group will join existing owner CVC Growth Funds on VelocityEHS’ board
  • The Company’s SaaS products help customers comply with environmental, health, and safety laws and regulations, power sustainability initiatives, and drive operational excellence
  • The EHS and ESG software markets continue to benefit from strong thematic trends such as growing pressure on companies to decarbonise

Partners Group, a leading global private markets firm, has, on behalf of its clients, agreed to acquire a significant minority stake in VelocityEHS (“the Company”), a leading environmental, health, and safety (“EHS”) and environmental, social and governance (“ESG”) software platform based in the US, from CVC Growth Funds (“CVC Growth”). Following the transaction, Partners Group will join CVC Growth on the Company’s board.

Founded in 1996 and headquartered in Chicago, VelocityEHS is a Software-as-a-Service (“SaaS”) platform offering products that help customers comply with a wide range of EHS laws and regulations, manage and reduce risk, and improve operational efficiency. VelocityEHS offers EHS software solutions that help customers across various use cases, including ESG management, Environmental Compliance, Safety, Ergonomics, Control of Work, Operational Risk, and Health. The Company has over 18,000 customers, with a focus on serving the manufacturing, food & beverage, pharmaceuticals, and chemicals sectors. The EHS/ESG software market is benefitting from strong thematic trends such as growing pressure on companies to decarbonise and disclose environmental sustainability information, as well as an increasingly complex regulatory environment. CVC Growth acquired VelocityEHS in 2017.

Following the investment, Partners Group and CVC Growth will work with the Company’s management team to continue to drive growth at VelocityEHS and cement its position as a leading player in the EHS and ESG software market worldwide. Key transformational value creation initiatives will include accelerating the growth of the Company’s ESG product, expanding into international markets, developing new products, and pursuing strategic acquisitions.

John Damgaard, Chief Executive Officer, VelocityEHS, comments: “EHS/ESG software adoption in the US and around the world is rising as organisations seek operational excellence and sustainable operations. Our massive customer base includes some of the world’s most admired companies. Our enterprise-grade VelocityEHS Accelerate® platform with embedded ActiveEHS® technology, and our award-winning solution set, allow us to have a very real impact in making workplaces safer and more sustainable up and down supply chains worldwide. We are very excited to continue our journey to establish the global category leader in EHS/ESG software with two world-class global financial sponsors in CVC Growth and Partners Group.”

Chris Russell, Managing Director, Private Equity, Technology Industry Vertical, Partners Group, says: “Our thematic research identified EHS as an attractive sub-sector of the US software market due to its large size, strong secular growth trends, and fragmented landscape. VelocityEHS is a market-leading SaaS platform in this space, with a comprehensive product portfolio, and we have strong conviction in its future prospects. We look forward to working with management and our partners at CVC on scaling VelocityEHS further and executing on the value creation plan.”

Aaron Dupuis, Partner at CVC, adds: “We are proud of the fantastic progress VelocityEHS has made since we invested in 2017. Working in close partnership with John and his team, we have been able to significantly accelerate the Company’s development both organically and through acquisition. We have enhanced the Company’s leading market position and expanded its addressable markets through new product launches and geographic expansion. We know Partners Group well and are very pleased to bring them on board and look forward to working closely with them to realise this next stage of growth for VelocityEHS.”

Partners Group was advised by Ropes & Gray LLP and Price WaterhouseCoopers LLP; CVC Growth by Weil, Gotshal & Manges LLP and William Blair; and VelocityEHS by Burns & Levinson, LLP.

Quotes

We know Partners Group well and are very pleased to bring them on board and look forward to working closely with them to realise this next stage of growth for VelocityEHS.

Aaron Dupuis Partner, CVC Growth

Aaron Dupuis, Partner at CVC, adds: “We are proud of the fantastic progress VelocityEHS has made since we invested in 2017. Working in close partnership with John and his team, we have been able to significantly accelerate the Company’s development both organically and through acquisition. We have enhanced the Company’s leading market position and expanded its addressable markets through new product launches and geographic expansion. We know Partners Group well and are very pleased to bring them on board and look forward to working closely with them to realise this next stage of growth for VelocityEHS.”

Partners Group was advised by Ropes & Gray LLP and Price WaterhouseCoopers LLP; CVC Growth by Weil, Gotshal & Manges LLP and William Blair; and VelocityEHS by Burns & Levinson, LLP.

Categories: News

Tags:

KKR Completes Acquisition of Barracuda from Thoma Bravo

KKR

NEW YORK & SAN FRANCISCO–(BUSINESS WIRE)– KKR, a leading global investment firm, and Barracuda Networks, Inc. (“Barracuda” or the “Company”) a leading provider of cloud-first security solutions, today announced that KKR’s investment funds have completed an acquisition of Barracuda from Thoma Bravo, a leading software investment firm. Financial terms of the transaction were not disclosed.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220816005239/en/

Barracuda is a cloud-first provider of cybersecurity solutions for small and medium sized enterprises (SMEs). More than 200,000 customers worldwide count on Barracuda to protect their email, networks, applications, and data.

“We’re ready to deliver on our next phase of growth with KKR and remain dedicated to investing in our team and product portfolio to provide innovative cybersecurity solutions for our customers and partners,” said Hatem Naguib, CEO of Barracuda. “We‘re grateful to Thoma Bravo for their valuable strategic and operational support over the last four years.”

“We are excited to complete this transaction and begin working with the Barracuda team to support their continued growth and delivery of next generation cloud-first cybersecurity solutions that protect SMEs from an evolving landscape of threats,” said John Park, a Partner at KKR.

“Barracuda has been a tremendous partner over the last four years and has experienced strong product, customer and revenue growth,” said Chip Virnig, a Partner at Thoma Bravo. “We have enjoyed working closely with Hatem and his team through multiple acquisitions and operational improvements, and we are confident that the company is well-positioned for continued success.”

J.P. Morgan served as exclusive financial advisor to Thoma Bravo and Barracuda. Kirkland & Ellis LLP served as legal counsel to Thoma Bravo and Barracuda. Simpson Thacher & Bartlett LLP served as legal counsel to KKR. Guggenheim Securities, DBO Partners and Barclays served as financial advisors to KKR.

About Barracuda Networks

At Barracuda we strive to make the world a safer place. We believe every business deserves access to cloud-first, enterprise-grade security solutions that are easy to buy, deploy, and use. We protect email, networks, data, and applications with innovative solutions that grow and adapt with our customers’ journey. More than 200,000 organizations worldwide trust Barracuda to protect them – in ways they may not even know they are at risk — so they can focus on taking their business to the next level. For more information, visit www.barracuda.com.

About KKR

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

About Thoma Bravo

Thoma Bravo is one of the largest private equity firms in the world, with more than $114 billion in assets under management as of March 31, 2022. The firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging the firm’s deep sector expertise and proven strategic and operational capabilities, Thoma Bravo collaborates with its portfolio companies to implement operating best practices, drive growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings. Over the past 20 years, the firm has acquired or invested in more than 380 companies representing over $190 billion in enterprise value. The firm has offices in Chicago, Miami and San Francisco. For more information, visit www.thomabravo.com.

Media

For Barracuda Networks:
Jonelle Elam
408-813-7762
jelam@barracuda.com

For KKR:
Julia Kosygina
212-750-8300
media@kkr.com

For Thoma Bravo:
Thoma Bravo Communications
Megan Frank
(212)-731-4778
mfrank@thomabravo.com

or

FGS Global:
Nicky Bryan
(646)-436-6126
nicky.bryan@fgsglobal.com

Source: KKR

Categories: News

Tags:

AURELIUS sells operating business of Transform Hospital Group to Y1 Capital

Aurelius Capital

Munich, August 16, 2022 – AURELIUS announces the disposal of Transform Hospital Group’s operating business to the UK-based private equity firm Y1 Capital. The transaction includes the cosmetic surgery and medical aesthetics business. Transform Hospital Group (THG) was formed, during AURELIUS’ ownership, from the merger of separate businesses Transform and The Hospital Group.

In the UK, THG is a provider of healthcare and wellbeing services in surgical and non-surgical cosmetic procedures, as well as weight loss treatments. THG has approximately 330 employees and operates a network of 11 outpatient clinics in England and Scotland, as well as operating two dedicated state-of-the-art surgical procedure hospitals. The company was founded as Transform in 1974, is headquartered in Manchester and initially started in the hair treatment business. In 1984, the first hospital was opened in Bowdon (South Manchester). By 1996, the first clinic was opened in Scotland. A flagship cosmetic surgery hospital was launched in Manchester in 2005. Transform was acquired by AURELIUS in 2015 and subsequently merged with The Hospital Group in 2016. In 2020, THG demonstrated its importance to the UK healthcare system, adapting its hospital operations to help support the NHS in the COVID-crisis.

Following a competitive sale process, the private equity-healthcare specialist Y1 Capital has been identified as the buyer best suited to further unlock the company’s full potential. Y1 Capital owns a portfolio of trading healthcare businesses across the UK and Europe. Therefore, the buyer will be able to take advantage of synergies with their Signature Medical business, which offers Cosmetic Surgery and Hair Transplants. The former THG-Chief Executive Officer and current Chief Executive Officer of Y1 Capital, Tony Veverka, will also be able to support the business with his deep market expertise.

“The last few years have been exceptionally challenging – especially in the healthcare sector. During the COVID-crisis, the THG team made an enormously valuable contribution to safeguarding access to healthcare in the UK, whilst supporting the NHS. Our thanks goes to all involved at THG, for their ongoing efforts. Under the ownership of Y1 Capital, AURELIUS looks forward to seeing THG thrive, utilising the synergies with Signature Medical.”, says Gerhard Engleder, Vice President at AURELIUS.

Signing and closing of the transaction took place on August 15, 2022. While the operating businesses for cosmetic surgery and medical aesthetics is sold to Y1 Capital, AURELIUS will continue to own The Pines hospital located in Manchester. The financial terms of the deal are not being disclosed.

Categories: News

Tags:

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

Apax

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

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

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

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

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

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

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

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

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

Categories: News

Tags:

Partners Group to acquire a significant minority stake in VelocityEHS, a leading environmental, health, safety, and sustainability software platform

Partners Group

Denver, US; 16 August 2022

  • Partners Group will join existing owner CVC Growth Funds on VelocityEHS’ board
  • The Company’s SaaS products help customers comply with environmental, health, and safety laws and regulations, power sustainability initiatives, and drive operational excellence
  • The EHS and ESG software markets continue to benefit from strong thematic trends such as growing pressure on companies to decarbonize

Partners Group, a leading global private markets firm, has, on behalf of its clients, agreed to acquire a significant minority stake in VelocityEHS (“the Company”), a leading environmental, health, and safety (“EHS”) and environmental, social and governance (“ESG “) software platform based in the US, from CVC Growth Funds (“CVC Growth”). Following the transaction, Partners Group will join CVC Growth on the Company’s board.

Founded in 1996 and headquartered in Chicago, VelocityEHS is a Software-as-a-Service (“SaaS”) platform offering products that help customers comply with a wide range of EHS laws and regulations, manage and reduce risk, and improve operational efficiency. VelocityEHS offers EHS software solutions that help customers across various use cases, including ESG management, Environmental Compliance, Safety, Ergonomics, Control of Work, Operational Risk, and Health. The Company has over 18,000 customers, with a focus on serving the manufacturing, food & beverage, pharmaceuticals, and chemicals sectors. The EHS/ESG software market is benefitting from strong thematic trends such as growing pressure on companies to decarbonize and disclose environmental sustainability information, as well as an increasingly complex regulatory environment. CVC Growth acquired VelocityEHS in 2017.

Following the investment, Partners Group and CVC Growth will work with the Company’s management team to continue to drive growth at VelocityEHS and cement its position as a leading player in the EHS and ESG software market worldwide. Key transformational value creation initiatives will include accelerating the growth of the Company’s ESG product, expanding into international markets, developing new products, and pursuing strategic acquisitions.

John Damgaard, Chief Executive Officer, VelocityEHS, comments: “EHS/ESG software adoption in the US and around the world is rising as organizations seek operational excellence and sustainable operations. Our massive customer base includes some of the world’s most admired companies. Our enterprise-grade VelocityEHS Accelerate® platform with embedded ActiveEHS® technology, and our award-winning solution set, allow us to have a very real impact in making workplaces safer and more sustainable up and down supply chains worldwide. We are very excited to continue our journey to establish the global category leader in EHS/ESG software with two world-class global financial sponsors in CVC Growth and Partners Group.”

Chris Russell, Managing Director, Private Equity, Technology Industry Vertical, Partners Group, says: “Our thematic research identified EHS as an attractive sub-sector of the US software market due to its large size, strong secular growth trends, and fragmented landscape. VelocityEHS is a market-leading SaaS platform in this space, with a comprehensive product portfolio, and we have strong conviction in its future prospects. We look forward to working with management and our partners at CVC on scaling VelocityEHS further and executing on the value creation plan.”

Aaron Dupuis, Partner at CVC, adds: “We are proud of the fantastic progress VelocityEHS has made since we invested in 2017. Working in close partnership with John and his team, we have been able to significantly accelerate the Company’s development both organically and through acquisition. We have enhanced the Company’s leading market position and expanded its addressable markets through new product launches and geographic expansion. We know Partners Group well and are very pleased to bring them on board and look forward to working closely with them to realize this next stage of growth for VelocityEHS.”

Partners Group was advised by Ropes & Gray LLP and Price WaterhouseCoopers LLP; CVC Growth by Weil, Gotshal & Manges LLP and William Blair; and VelocityEHS by Burns & Levinson, LLP.

Categories: News

Tags: