Category Archives: News

Bain Capital And Conren Tramway Partner to Invest Over €600 Million In Iberian Logistics

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Bain Capital And Conren Tramway Partner to Invest Over €600 Million In Iberian Logistics

  • Joint venture (JV) on track to acquire land in Valencia with 92,000 sqm of GLA
  • JV will acquire and develop warehouses in Iberia to the highest ESG standards
  • Partnership consolidates the launch of Conren Tramway’s logistics division
  • Bain Capital to expand its existing c.400,000 sqm logistics portfolio to include Spain

MADRID and LONDON – June 26, 2023 – Bain Capital, a leading private investment firm and Conren Tramway (CT), a leading Spanish real estate investment and development firm, have announced the launch of a JV to co-invest over €600 million into the acquisition and development of logistics in Spain and Portugal over the next five years.

In Spain, the JV will target consolidated and growing logistics hubs nationwide including Madrid, Catalonia, Valencia and Southern Spain. In Portugal, the focus will be on the hubs in Lisbon and Porto.

The JV will focus on delivering grade A logistics to suit the whole range of operator demand, including big box, cross-docking, cold storage and last mile. To design and reposition the assets, the JV will apply CT’s Design Principles and benefit from Bain Capital’s global expertise in logistics investment. The CT team has extensive experience working with clients to tailor the design, construction, functionality, and sustainability of assets to their business needs.

Additionally, the partnership is focused on delivering assets that meet the highest ESG standards including, where appropriate, photovoltaic panels, EV chargers, sustainable construction materials and innovative façades, roofing, and pavements.

CT has an extensive track record of investment and development in the Spanish market, with dedicated teams covering each phase of the investment cycle. Its logistics division, CT Logistics, is led by José María Gutiérrez and Juan Manuel Esteban, with a combined 40 years’ experience investing in, developing, and managing logistics warehouses. Prior to joining CT, they helped create the largest portfolio of logistics assets in Spain, totalling 2.8 million sqm and owned by Merlin Properties, a major real estate investor. Luke Treasure and Gerard Cuevas, with backgrounds at Hines and Goodman, respectively, will support the team in design, construction and sustainability.

As the majority shareholder and financial partner, Bain Capital has a long track record of partnering with local investors and managers globally to capitalise on investment opportunities in sectors with strong fundamentals and growth potential. It has developed c.400,000 sqm of logistics platforms in Poland and Italy, where it focuses on ground-up development in sought after micro-locations, and locations in close proximity to the main logistics corridors, respectively.

JV kicks off with the acquisition of a 92,000 sqm GLA plot in Valencia

The JV  has secured a plot in Loriguilla (Valencia) with total GLA of 92,000 sqm. The asset will be developed to the highest ESG standards.

The Loriguilla project is located near the junction of the A3 and A7 motorways, a strategic logistics area due to its easy access to Valencia’s cargo port and good connectivity with the rest of Spain. Available space in the area is currently limited.

A dynamic market with strong fundamentals

The Iberian logistics market is attracting increasing international attention, leading to a four-fold increase in annual investment volumes in Spain since 2016. The historically low levels of available space are expected to continue to drive rental growth in the short term. In 2022, Madrid, Catalonia, and Valencia had record levels of logistics leases, with rising rents and falling vacancy rates at the most consolidated hubs.

Rafael Coste Campos, Managing Director at Bain Capital comments, “We are pleased to launch this new JV as we expand our logistics services across Southern Europe, in particular Spain and Portugal. We have a solid track record of establishing logistics platforms in markets with strong fundamentals, controlling c.400,000 sqm in Europe alongside two best-in-class JV partners. Our global investment expertise is complimented by CT who have a strong track record of investment and development in Iberia. We look forward to working with them on this project.”

As Paco Hugas, co-CEO of CT, explains, “After having invested more than €1.3 billion and assembled an organisation of 50 people with offices in Madrid and Barcelona, CT manages all functions of the value chain, including acquisitions, urban planning, development and asset and lease management, distinguishing itself for its ability to accommodate user needs through innovation in product design. CT is well positioned to expand and diversify its investment programme leveraging its values and processes, and the logistics market presents a good opportunity to deploy our skills as an investor, developer, and manager with a long-term commitment. To that end, the firm, which invariably invests jointly with primary capital from private and institutional investors, has found the ideal partner in Bain Capital”.

José María Gutiérrez, Managing Director of CT Logistics, says, “Our team’s four decades of experience in the logistics market has shown us how important it is for our clients to have real estate partners who understand their needs and know how to reflect those needs in the design of next generation logistics projects, while working alongside them as they grow their operations. CT and Bain Capital are ideally poised to perform this role over time” .

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About Conren Tramway

Conren Tramway (CT) is a Spanish real estate development and investment firm with a portfolio of assets including office buildings, mixed-use projects, residential properties, and logistics warehouses.

CT was founded as a specialist in the office market. In recent years, the firm has expanded its investment strategy to cover  other segments, including residential, and currently develops assets totalling over 350,000 sqm. Among other remarkable projects, CT currently spearheads the development of the largest mixed use eco-district in Spain, laMercedes, with a total of 185,000 sqm.

The company has a multidisciplinary team of almost 50 people, including investment analysts, architects, project managers, asset, leasing and property managers, who cover the entire lifecycle of real estate assets from CT offices in Madrid and Barcelona.

Learn more: https://conrentramway.com

About Bain Capital Special Situations

Bain Capital Special Situations has $15 billion in assets under management and has invested $28 billion since its founding in 2002. We provide bespoke capital solutions to meet the diverse needs of companies, entrepreneurs, and asset owners – in all market cycles. The strategy brings together credit and equity expertise, as well as corporate and real asset expertise, to provide solutions which cannot be met by traditional providers. We invest globally across capital structures in corporate debt and structured capital solutions, distressed assets, non-performing loans, hard asset opportunities, and growth equity. Our dedicated, global team of 100 investment and portfolio professionals contribute the local expertise and capabilities that enable these diverse investments.

Learn more: https://baincapitalspecialsituations.com/

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Aspia continues to strengthen its presence in Norway through a new acquisition

Stockholm, 26 June 2023 – Aspia acquires Generi Accounting, a Norwegian accounting and advisory firm specialising in accounting, payroll, tax and advisory services.

Aspia acquired a Norwegian accounting group in May and is now taking a second step to further strengthen its position on the Norwegian market.

Generi Accounting will become part of Aspia’s existing operations in Norway, strengthening its presence and making it the market leader in the northern Norwegian market.

Since 2018, Aspia has offered solutions across the Nordic region in accounting, payroll and tax, and the latest acquisitions will further strengthen that offering.

“Together with Generi Accounting, Aspia’s business in Norway can take further steps in its regional and national growth plan. We already see a great demand among our customers in the Norwegian market, and this will significantly strengthen our delivery capacity,” says Ola Gunnarsson, CEO at Aspia.

For more information, please contact:  

Pia Törnqvist, CMO, pia.tornqvist@aspia.se ,+46 (0)706 897 659

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Söderberg & Partners raises new capital to support further international expansion

KKR
  • Takes in an additional EUR 200 million from minority owner KKR

Söderberg & Partners has agreed to close a new share issue, raising approximately 200 million EUR (2,3 billion SEK). The new growth investment is being provided by KKR, an existing minority investor since 2019. Following the new share issue, Söderberg & Partners will continue to be controlled by its founders and supported by its two significant minority shareholders, global investment firm KKR and private equity firm TA Associates.

The new capital will used to facilitate and support Söderberg & Partners’ ongoing expansion across all its current markets, with a particular focus on building upon its recent entry into Spain and the UK.

Gustaf Rentzhog, CEO and co-founder of Söderberg & Partners says: “We have just established Söderberg & Partners in the UK, a 10 trillion GBP wealth management market. We are confident, that with our technology and our partnership model, we are bringing a competitive offer that will fill a gap in the current market and help improve both efficiency and quality for the advisers that chooses to partner with us.”

He then continues: “Söderberg & Partners also recently entered the Spanish market and, through a number of acquisitions, we have already become one of the largest insurance intermediaries in the country. Our aim is continue on this journey and become one of the leading players in this market within the coming years”.

Hans Arstad, Managing Director leading KKR’s European private equity activities across the Nordic region, comments: “Söderberg & Partners has more than doubled in size since our initial investment in 2019 and we are pleased to make a significant new investment behind this exceptional team and platform. We believe there is enormous potential for Söderberg & Partners to accelerate its growth in UK, Spain and the rest of Europe by continuing to invest in building its differentiated suite of technology-enabled services and pursuing strategic M&A with leading players in key growth markets.

KKR is making the additional investment primarily through its European Fund V. The firm has an established track record in the Nordic region, having invested over 6 billion EUR in equity since 2007 and strengthening its presence and growth ambitions in the region with the opening of a new office in Stockholm, Sweden in June 2021.

For more information, please contact:

Rasmus Löwenmo Buckhöj, Head of Information, Söderberg & Partners Group
Rasmus.LowenmoBuckhoj@soderbergpartners.se
+4676 149 50 05

For KKR Nordics:
Ludvig Gauffin, Fogel & Partners
kkr@fogelpartners.se
+4670 222 60 30

About Söderberg & Partners

Söderberg & Partners was founded in Sweden 2004 and is today one of the largest providers of wealth management and corporate insurance services in the Nordic region and the Netherlands. The company has over 3,000 employees across more than 110 offices in Sweden, Norway, Denmark, Finland, the Netherlands, Luxemburg and Spain, and more than GBP 60bn in Assets under Management and Assets under Advice.

www.soderbergpartners.co.uk

www.soderbergpartnersgroup.com

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EQT Private Equity to sell Ellab, following transformation into a leading validation & monitoring provider for the Biotech and Pharmaceutical industries

eqt
  • EQT Private Equity, together with its co-shareholders, to sell Ellab to Novo Holdings
  • Since EQT Private Equity invested in 2019, Ellab has transformed into a full-suite provider of validation and monitoring solutions and services, serving all the top 20 biotech companies and all the top 40 pharmaceutical companies globally
  • Transformation has resulted in Ellab tripling its revenues, EBITDA and number of employees, while experiencing approximately 20% annual organic revenue growth and completing 15 add-on acquisitions

EQT is pleased to announce that EQT Mid Market Europe (“EQT Private Equity”), together with its co-shareholders, have agreed to sell Ellab (“Ellab” or the “Company”) to Novo Holdings, which is responsible for managing the assets and wealth of the Novo Nordisk Foundation, one of the world’s largest philanthropic enterprise foundations.

Headquartered in Hillerød, Denmark, Ellab provides validation and monitoring solutions and services for biotech and pharmaceutical processes. Its solutions and services measure and document parameters such as temperature, pressure, and carbon dioxide. These help clients to ensure consumer safety and regulatory compliance while reducing time to market and the risk of product loss.

EQT Private Equity acquired Ellab in September 2019 with a vision to accelerate the Company’s growth journey by solidifying its core offering within validation solutions, while expanding into monitoring solutions and field services & consulting. Today, Ellab has transformed into a full solution provider, while tripling its revenues, EBITDA and employee base. It counts all the top 20 biotech companies and all the top 40 pharmaceutical companies globally as clients.

During EQT Private Equity’s ownership, Ellab shifted its customer focus towards high-growth industries such as biotech, cell & gene therapies, and contract development & manufacturing organizations. At the same time, it invested significantly in research & development, digitalization and personnel to strengthen the organization, while acquiring 15 companies around the globe. The Company has also defined a clear sustainability strategy, for instance by committing to the Science Based Targets initiative that requires Ellab to set greenhouse gas emission reduction targets in line with the 1.5° pathway described in the Paris Agreement.

Rikke Kjær Nielsen, Partner within EQT Private Equity’s Advisory Team, said, “Ellab’s solutions play a vital role in ensuring accuracy and compliance in its clients’ biotech and pharmaceutical processes, which is key for these companies. This was true when we first invested in Ellab and remains the case today. The difference now is the scale and flexibility that Ellab offers, as it has transformed into a full-suite provider of validation and monitoring solutions and services. It has been a privilege to partner with the entire Ellab management team, who have built a company with a strong culture and customer focus, dedication to innovation and commitment to consumer safety. We believe Novo Holdings is a great partner for the next stage of Ellab’s growth journey and we wish them all the best in the future.”

Ludvig Enlund, CEO of Ellab, said “With EQT Private Equity’s support, Ellab has transformed into a truly leading global player with best-in-class software and hardware for validation and monitoring for the life sciences industry, and today also holds a strong position within field services & consulting. We are grateful for the partnership and now look forward to continuing our journey with Novo Holdings.”

The transaction is subject to regulatory approval. Closing of the transaction is expected in Q3 2023.

Contact

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

About EQT
EQT is a purpose-driven global investment organization with EUR 119 billion in assets under management within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

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

About Ellab
Headquartered in Hillerød, Denmark, Ellab provides Validation and Monitoring Solutions and Services used for measuring and documenting critical parameters such temperature, pressure and CO2 in mainly biotech and pharma processes. The Company serves all of the top 20 biotech companies and all of the top 40 pharma companies globally helping them ensure consumer safety and regulatory compliance, while reducing time to market and the risk of product loss.

More info: https://www.ellab.com/

About Novo Holdings A/S
Novo Holdings is a holding and investment company that is responsible for managing the assets and the wealth of the Novo Nordisk Foundation. The purpose of Novo Holdings is to improve people’s health and the sustainability of society and the planet by generating attractive long-term returns on the assets of the Novo Nordisk Foundation.

Wholly owned by the Novo Nordisk Foundation, Novo Holdings is the controlling shareholder of Novo Nordisk A/S and Novozymes A/S and manages an investment portfolio with a long-term return perspective. In addition to managing a broad portfolio of equities, bonds, real estate, infrastructure and private equity assets, Novo Holdings is a world-leading life sciences investor. Through its Seeds, Venture, Growth, and Principal Investments teams, Novo Holdings invests in life science companies at all stages of development.

As of year-end 2022, Novo Holdings had total assets of EUR 108 billion.
www.novoholdings.dk 

About the Novo Nordisk Foundation
Established in Denmark in 1924, the Novo Nordisk Foundation is an enterprise foundation with philanthropic objectives. The vision of the Foundation is to improve people’s health and the sustainability of society and the planet. The Foundation’s mission is to progress research and innovation in the prevention and treatment of cardiometabolic and infectious diseases as well as to advance knowledge and solutions to support a green transformation of society.

www.novonordiskfonden.dk/en

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Intel Agrees to Sell Minority Stake in IMS Nanofabrication Business to Bain Capital

BainCapital

Intel Agrees to Sell Minority Stake in IMS Nanofabrication Business to Bain Capital

Transaction will accelerate innovation of critical multi-beam mask writing tools, foster deeper cross-industry collaboration

 

NEWS HIGHLIGHTS

  • Transaction will accelerate innovation of critical multi-beam mask writing tools and foster deeper cross-industry collaboration.
  • Multi-beam mask writing tools are critical to the semiconductor ecosystem for creating EUV technology.
  • Sale of approximately 20% stake values IMS at approximately $4.3 billion.

SANTA CLARA, Calif., and BOSTON, June 21, 2023 – Intel Corporation today announced that it has agreed to sell an approximately 20% stake in its IMS Nanofabrication GmbH (“IMS”) business to Bain Capital Special Situations (“Bain Capital”), in a transaction that values IMS at approximately $4.3 billion. The transaction is expected to close in the third quarter of 2023. IMS will operate as a standalone subsidiary and will continue to be led by CEO Dr. Elmar Platzgummer.

 

Since inventing multi e-beam technology and introducing the first commercial multi-beam mask writer in 2015, Vienna, Austria-based IMS has been an industry leader in multi-beam mask writing for advanced technology nodes. Intel initially invested in IMS in 2009 and ultimately acquired the business in 2015. Since the acquisition, IMS has delivered a significant return on investment, growing its workforce and production capacity by four times and delivering three additional product generations.

 

Today, as EUV technology becomes broadly adopted in leading-edge technologies, the multi-beam mask writing tools required to create advanced EUV (extreme ultraviolet lithography) masks are increasingly critical components to the semiconductor manufacturing ecosystem. This investment will position IMS to capture the significant market opportunity for multi-beam mask writing tools by accelerating innovation and enabling deeper cross-industry collaboration.

 

“The advancement of lithography is critical to driving continued progress in the semiconductor industry, and mask writing plays a central role in the industry’s transition to new patterning technologies, such as high-NA EUV,” said Matt Poirier, senior vice president of Corporate Development at Intel. “Bain Capital’s investment and partnership will provide IMS with increased independence and bring strategic perspective to help accelerate the next phase of lithography technology innovation, ultimately benefitting the ecosystem as a whole.”

 

Platzgummer said, “We are pleased to gain a valuable partner in Bain Capital, which has a long history of partnering with companies to drive growth and value creation. They share our conviction in the meaningful opportunity ahead for IMS as EUV becomes more pervasive and high-NA EUV moves from development into high-volume manufacturing in the second half of the decade. We look forward to expanding our ability to support the world’s largest chip producers, who rely on our technology to produce current and next generations of semiconductor products.”

 

Marvin Larbi-Yeboa, a partner at Bain Capital, said, “As the global leader and innovator of emerging technologies in the semiconductor fabrication and nanotech industries, we believe IMS is well-positioned to capitalize on attractive secular tailwinds as additional chip production capacity comes online and build on its leading competitive position, tech differentiation and cutting-edge product capabilities.”

 

Will Tetler, a managing director at Bain Capital, added, “We look forward to partnering with IMS’ exceptional management team and Intel to employ our deep industry experience and value-creation capabilities to support the business’ long-term growth strategy through further investment in its leading-edge tech and product portfolio to enable IMS to extend its competitive market position.”

 

Forward Looking Statements

This press release contains forward looking statements regarding the planned investment by Bain Capital Special Situations (“Bain Capital”) in IMS Nanofabrication GmbH (“IMS”), including the timing of closing and possible implications of such investment on the IMS business.  Such forward looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including:  the risk that the transaction may not be completed in a timely manner or at all, including as a result of a failure to receive regulatory approvals; the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction; the risk that the expected benefits of the transaction, including as a result of the increased independence of IMS, may not be realized or that the sale of a minority ownership in IMS may adversely impact the IMS business or Intel; disputes or potential litigation related to the transaction or the ownership, control and operation of the IMS business, including as it relates to Intel; unanticipated costs related to the transaction or the IMS business that may be incurred; risks as to the retention of key IMS personnel and customers; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; changes in demand for semiconductor manufacturing tools; the high level of competition and rapid technological change in the semiconductor industry; and other risks and uncertainties described in Intel’s earnings release dated April 27, 2023, 2022 Annual Report on Form 10-K and other filings with the SEC. All information in this press release reflects Intel management views as of the date hereof unless an earlier date is specified. Intel does not undertake, and expressly disclaims any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

About Intel

Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com. © Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.

 

About IMS Nanofabrication

IMS Nanofabrication GmbH, an Austrian business and subsidiary of Intel Corporation, is the global technology leader for multi-beam mask writers. Its customers are the largest chip manufacturers in the world, who rely on its technology to produce current and future chip generations. IMS’ innovative multi-beam writers play a key role in chip manufacturing and provide significant added value to the semiconductor industry. They are continually customized and refined by an interdisciplinary team, in line with the latest market demands. Over the last 10 years, IMS has perfected its electron-based multi-beam technology. The first-generation multi-beam mask writer, MBMW-101, is successfully operating all over the world. The second-generation multi-beam mask writer, MBMW-201, entered the mask writer market in the first quarter of 2019 for the 5nm technology node. And this year, IMS is launching MBMW-301, a fourth-generation multi-beam mask writer that delivers unprecedented performance. Learn more at www.ims.co.at/en/.

 

About Bain Capital Special Situations

Bain Capital Special Situations is a global team of investors who have driven value creation for more than 20 years. Bain Capital Special Situations has $18 billion in assets under management and has invested more than $28 billion since our inception in 2002. We provide bespoke capital solutions to meet the diverse needs of companies, entrepreneurs, and asset owners. Across all market cycles, the strategy brings together credit, equity, corporate and real asset expertise to partner where traditional providers cannot. Our dedicated, global team of more than 100 investment and portfolio professionals contribute the local expertise and capabilities that enable these diverse investments. For more information, please visit: https://baincapitalspecialsituations.com/.

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Renta acquires Mylift

IK Partners

Renta Group Oy (“Renta Group” or “Renta”) has reached an agreement to acquire Mylift Holding AS (“Mylift” or “the Company”). Mylift is a Norwegian general rental company operating in the northern part of Oslo and in Innlandet. Mylift also provides scaffolding services through its subsidiary Mylift & Borud Stillas AS. The Company has eight depots, more than 200 employees and annual revenues of more than NOK 360 million.

The acquisition marks a continuation in Renta’s strategy towards building a nationwide rental network, strengthening Renta’s presence in Oslo and extending the rental network to Innlandet, further north from Oslo. Through this latest addition, Renta will have more than 500 employees across 33 depots in Norway. In addition, the acquisition of Mylift strengthens Renta’s product and service offering, particularly in the site modules product category as well as in scaffolding services. Furthermore, Renta will get access to a broader customer base, especially through Mylift’s customers in the event business and by adding site modules to Renta’s offering in Norway.

Mylift’s customer-centric business model and highly complementary geographic presence and product offering, makes it an excellent fit for Renta. Mylift will continue to serve its customers with the same local approach and high-quality services as before and further benefit from implementing Renta’s cutting edge digital solutions to enhance their services.

The acquisition is expected to be completed following a review and approval by the Norwegian Competition Authority.

Kari Aulasmaa, CEO of Renta Group, said:

“We are thrilled to join forces with Mylift, a profitable and rapidly growing company with a reputation of providing high-quality services. Through the acquisition, Renta makes another step forward in building a fully nationwide coverage in Norway, while at the same time strengthening strategically important product and service areas. Mylift’s complementary presence and offering provides an excellent platform for continued growth for us in Norway. We would like to extend a warm welcome to the Mylift team and look forward to working with them.“

Knut Rindal, CEO of Mylift, said:

“We are genuinely glad to become a part of Renta Group, which adheres to highest operational standards and has ambitious plans for the future. I am convinced that Renta will provide a good home for our employees and that we will be able to further develop our services towards our customers as part of Renta. It was important for us that the chosen strategic partner shares the same values that we have followed in our operations, and I truly believe that Renta is the perfect choice. I am certain that together with Renta we will become even stronger and be able to accelerate growth in the Norwegian rental market.”

Enquiries: ir@renta.com

About Renta Group

Renta Group is a Northern European full-service equipment rental company founded in 2015. Renta has operations in Finland, Sweden, Norway, Denmark, Poland, and the Baltics, with 137 depots and over 1,500 employees. Renta is a general rental company with a wide range of construction machines and equipment along with related services. In addition to operating a network of rental depots, Renta is a supplier of scaffolding and weather-protection services. For more information, please visit www.renta.com

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About Mylift

Mylift Holding AS is a Norwegian general rental company founded in 2010.Through subsidiary Mylift & Borud Stillas AS, Mylift also provides scaffolding services. The company has eight depots and more than 170 employees. For more information, visit https://mylift.no/

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Vendis Capital supports the growth of Meubelzorg

Vendis Capital

Vendis Capital, the consumer sector specialized European private equity fund, invests in Meubelzorg, a direct-to-consumer premium elderly care brand in assistive furniture

Meubelzorg, based in Alkmaar (The Netherlands), is a direct-to-consumer premium elderly care brand in custom-made rise & recline chairs that enables elderly to live longer independently at home. The company was founded in 2017 with the aim of making rise & recline chairs accessible to everyone by testing the chairs at home. Since then, they have delivered considerable growth both in The Netherlands and internationally.

Meubelzorg is the leading premium brand in assistive furniture and is known for its bespoke rise & recline chairs. The company’s consumer centric business model allows for online orientation followed up by at-home or in store testing and full customization to individual wishes and needs. All products are made-to-measure. Building on its success in The Netherlands, the company has successfully rolled out its business model to Belgium.

Vincent Braams, Partner at Vendis Capital: “We are very happy to add Meubelzorg to our portfolio of consumer brands. It presents a fast growing, digital native and direct-to-consumer elderly care brand that accommodates the increasing demand from elderly to live longer comfortably at home. We see growth opportunities in international markets and in other categories that help elderly to live longer in their own home.”

The participation in Meubelzorg represents the seventh investment within Vendis Capital III, the €300 million fund that was launched in 2019.

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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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