Category Archives: News

CVC Credit Partners backs Calibre Scientific’s next phase of growth

Funding by CVC Credit Partners will support the business’s buy-and-build growth strategy

CVC Credit Partners (“CVC Credit”) is pleased to announce that it has provided a $92 million multicurrency first lien credit facility to Calibre Scientific, the life sciences and diagnostics business owned by StoneCalibre. Funding provided by CVC Credit will be used to refinance the existing debt facility and to support the company’s global acquisition strategy. Baird Global Investment Banking served as the exclusive debt advisor for the transaction.

Founded in 2013, Calibre Scientific is a diversified global developer, manufacturer and distributor of consumable products in the life sciences and diagnostics markets. Since inception, the business has continually expanded through a combination of organic growth and acquisitions, and today has a broad portfolio of more than 3,000 products, which it sells into over 100 countries worldwide. Calibre Scientific’s 6,000+ customers include blue-chip biopharmaceutical companies, leading academic institutions and diagnostics companies.

Dr. Benjamin Travis, CEO of Calibre Scientific, commented: “We are happy to have completed the refinancing of the business and secured financing to continue to execute our acquisition growth strategy. This strong foundation will allow us to progress with our next phase of development.”

Brian Wall, Founder and CEO of StoneCalibre, added: “We are pleased to bring CVC Credit Partners onboard. Their ability to quickly understand the dynamics of the market and Calibre Scientific’s operating model was impressive, while their experience in supporting international growth strategies convinced us that they will have a key role to play going forward.”

Andrew Eversfield, Director of CVC Credit Partners’ U.S. Private Debt business, said: “We’re excited to support a company delivering high societal impact and one whose mission is as critical as ever. Calibre Scientific is an established player in a growing market. It has a broad portfolio of leading brands and a loyal and highly diverse customer base. We look forward to partnering with StoneCalibre and helping to write future chapters of the Calibre Scientific story.”

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Evernex announces the acquisition of Technogroup and creates a global leader in data centre equipment maintenance

3I

3i-backed Evernex, a global international provider of third-party maintenance (“TPM”) services for data centre infrastructure in which 3i invested in October 2019, announces the acquisition of Technogroup, the leading TPM player in the DACH region.

As part of the transaction, Technogroup’s management and its shareholder Vitruvian Partners, a leading growth equity firm with a global presence, will roll over a significant investment into the combined group. 3i will invest €47m of additional capital to finance the transaction, with Evernex’s management team also reinvesting €2m. The transaction remains subject to clearance from the relevant antitrust authorities.

Headquartered in Hochheim, near Frankfurt, Germany, Technogroup was founded in 1990 and is the leading TPM player in the DACH region and Poland, with strong brand recognition, best-in-class service, valued expertise in data centre maintenance and value-add services for data centres. The company serves over 5,200 customers with 290 employees and over 50 service centres in Germany, Austria, Switzerland and Poland. Technogroup has quadrupled in size over the past ten years through a mix of organic growth and acquisitions.

With Technogroup, Evernex reinforces its presence in the DACH and Central Europe with a highly reputable team. The combined group will be uniquely positioned to assist its customers providing a single point of contact on a truly global basis in data centre maintenance services, with an especially strong footprint across Europe, Latin America and MEA.

Rémi Carnimolla, Partner, at 3i France: “With the acquisition of Technogroup, Evernex reinforces its status as a successful consolidation platform. This is already the second acquisition since October 2019 following Storex in South Africa four months ago.”

Frédéric Chiche, Director, and Marc Ohayon, Associate Director: “In the context of the COVID19 pandemic and tight lockdowns in both France and Germany, we are proud of having achieved this transaction. It is a significant step up to leadership in the sector and a transformative event in the TPM space.”

Stanislas Pilot, President and CEO of Evernex: “This combination offers fantastic growth prospects. Thanks to the backing of the 3i balance sheet and the strong performance of Evernex during the current pandemic, confirming the high resilience of the company’s business, and to Vitruvian Partners’ significant rollover alongside us, the new group will have unique capabilities to enter new markets and better serve its international clients and OEM partners. We are excited to welcome the Technogroup team to the Evernex family and we are confident in both teams’ commitment to excellence in building a solidly integrated group, providing best-in-class services for our customers.”

Torsten Winkler, Partner, and Fabian Wasmus, Partner, at Vitruvian: “When Vitruvian invested in Technogroup in December 2017, the business had great fundamentals and double-digit growth. With our backing, the company established itself as one of the European champions in TPM services, notably with three acquisitions that expanded the group’s geographic presence and equipment expertise. We are convinced that joining forces with Evernex will bring tremendous value to both companies and help build a true global leader.”

Klaus Stöckert, CEO of Technogroup: “The fit between Technogroup and Evernex is strong, both in terms of strategic sense and common DNA between our teams. We are aligned in the strategic ambition to be the single point of contact for our customers and partners. By joining forces, we will be able to assist our customers in more geographies thanks to Evernex’s global footprint and by offering more equipment expertise. Our teams have known each other for years. We are excited by this opportunity to join Evernex and to do much more together in the same group.”

3i invested in Evernex in October 2019. Headquartered in Paris, France, Evernex maintains over 200,000 IT systems in c. 160 countries, and has a global network of 34 offices. It is the preferred maintenance partner for multinational companies and has developed a multi-channel and multi-vendor flexible offering. In March 2020, Evernex acquired Storex, a South African provider of maintenance services for critical data centre equipment, thus reinforcing its leadership in MEA.

-Ends-

Download the press release  

 

For further information, contact: 

3i Group plc

Silvia Santoro

Investor enquiries

 Tel: +44 20 7975 3258

Email: silvia.santoro@3i.com
Kathryn van der Kroft

Media enquiries

 Tel: +44 20 7975 3021

Email: kathryn.vanderkroft@3i.com

 

Notes to editors:

About 3i Group

3i is an investment company with two complementary businesses, Private Equity and Infrastructure, specialising in core investment markets in Northern Europe and North America.

3i’s Private Equity team provides investment solutions for growing companies, backing entrepreneurs and management teams of mid-market companies with an EV typically between €100m – €500m. We back international growth plans, providing access to our network and expertise to accelerate the growth of companies across the consumer, industrial, healthcare and business and technology services industries.

For further information, please visit: www.3i.com

 

Regulatory information

This transaction involved a recommendation of 3i Investments plc, advised by 3i France.

evernex-logo.png

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KKR to Acquire Roompot Group from PAI Partners

KKR

LONDON–(BUSINESS WIRE)–Jun. 18, 2020– KKR, a leading global investment firm, today announces an agreement to acquire Roompot Group, a provider of holiday parks in Western Europe and #1 operator in the Netherlands, from leading European private equity firm PAI Partners. The transaction is subject to customary closing conditions, having already received positive works council advice. Financial terms are not disclosed.

Founded in 1965 in the region of Zeeland (the Netherlands), Roompot has progressively developed to become a leading holiday parks operator in Europe. The business directly owns and operates 33 parks in the Netherlands, Germany and Belgium, and works exclusively with more than 100 third-party park operators to support their booking and distribution efforts and provide development, design and refurbishment services.

Under PAI’s ownership, Roompot has invested significantly in upgrading and expanding its accommodations and opening new parks, developed a strong digital marketing and distribution platform, increased real estate ownership and grown revenue and EBITDA at double digit growth rates. The company now welcomes three million guests and 13 million overnight stays each year, generating revenues of almost EUR 400 million. PAI’s ownership of Roompot continued its strong track record of supporting the growth of consumer companies worldwide, including in the leisure sector with B&B Hotels most recently, and in the Netherlands where it is currently invested in Wessanen, a leading European healthy and sustainable foods company, and Refresco, a leading international bottler of beverages.

KKR will continue to support Roompot’s current management team with its further development into a leading pan-European operator, driven by supportive structural trends around domestic tourism. The investment continues KKR’s track record in the Netherlands with major recent investments including Upfield (formerly Unilever’s Spreads business), Exact Software (a leading provider of accounting software to SMBs) and Q-Park (a pan-European parking services provider).

Jurgen van Cutsem, CEO of Roompot Group, said: “As we change to new ownership we would like to thank PAI, who have been a hugely supportive partner to our team since 2016, and welcome KKR for the next phase. Our focus, as always, will be providing a great service for our leisure customers and third-party providers. We continue to see growing demand from our guests and from our corporate partners due to the leading platform we have put in place, providing a solid foundation to scale the business, also on an international level.”

Daan Knottenbelt, Partner and Head of the Benelux region at KKR, said: “Roompot is already a leading player in the region with a best-in-class management team and a strong recent track record. We see significant further growth potential based on a very strong development pipeline, continued expansion of Roompot’s owned assets and new corporate partnerships. KKR is investing in Roompot through our Core Investments strategy, which is our pool of capital for longer-term investments, and we look forward to working with Jurgen and his team over the coming years.” Joerg Metzner, Director at KKR, added that “We have been looking for a platform to invest behind in the fragmented European holiday parks market for some time. Our support for Roompot and its management team fits perfectly with our broader investment theme in the leisure space.”

Gaëlle d’Engremont, Partner and Head of Food & Consumer at PAI Partners, said: “PAI has accompanied Roompot through an exciting transformation journey since 2016. Roompot has significantly reinforced its offer and its leadership in the Dutch holiday park sector over the past four years under the leadership of Jurgen. We are delighted that KKR will support the strong ambitions of the team to continue this successful trajectory.”

KKR is making its investment through its Core Investments strategy, which represents capital targeting longer-term opportunities. Recent European investments through this strategy include the acquisition of Exact Software in the Netherlands in 2019.

About Roompot
Roompot is the second-largest operator and provider of holiday parks in Europe and a regional market leader in the Netherlands, with a strong and expanding position on the coastal regions. More than 2100 employees are motivated to let 3 million guests enjoy a well-earned vacation each year, representing 13 million overnight stays in Roompot’s 17,000 holiday accommodations. In total Roompot has more than 150 holiday parks in Denmark, the Netherlands, Germany, Belgium, France and Spain in its portfolio, from premium resorts to comfortable parks and pleasing campsites. www.roompot.com

About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About PAI Partners
PAI Partners is a leading European private equity firm with offices in Paris, London, Luxembourg, Madrid, Milan, Munich, New York and Stockholm. It manages €13.6 billion of dedicated buyout funds and, since 1994, has completed 74 transactions in 11 countries, representing over €50 billion in transaction value. PAI Partners is characterised by its industrial approach to ownership combined with its sector-based organisation. It provides the companies it owns with the financial and strategic support required to pursue their development and enhance strategic value creation. www.paipartners.com

Media Contacts
KKR: international
Alastair Elwen / Alice Neave
Finsbury
+44 (0) 20 7251 3801 or kkr@finsbury.com

KKR: Netherlands
Corina Holla
Meines Holla & Partners
+31 (0)70 362 25 52 or corinaholla@meinesholla.nl

PAI Partners
Head of Communications: Matthieu Roussellier
+44 20 7297 4674
Greenbrook Communications: James Madsen / Fanni Bodri
+44 20 7952 2000

Roompot
PR & Corporate Communications: Baptiste van Outryve
+31 6 30 94 78 24

Source: KKR

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EQT concludes strategic review of Credit business segment with sale to Bridgepoint

eqt

EQT AB (“EQT”) today announced that following the review of future strategic options for the business
segment Credit (“Credit”), a definitive agreement has been reached to sell the Credit business to
Bridgepoint (the “Transaction”). Despite the difficult market environment, there was considerable
interest in the business. The sale ensures that Credit gets a new owner able to support its growth
prospects and permits EQT to further focus its efforts on building scalable value-add strategies
focused on active ownership.

Established in 2008, Credit is the smallest of EQT’s three business segments with approximately EUR
4 billion of assets under management (“AUM”) as of 31 December 2019 in three complementary
strategies: Special Situations, Direct Lending and Senior Debt. This represented around ten percent of
EQT’s total AUM. The Credit business segment had total revenues of EUR 35.8 million and a gross
segment result of EUR 12.3 million in the financial year ended 31 December 2019. The business
segment employs approximately 40 professionals, including five Partners. Since inception, Credit has
raised over EUR 7 billion of capital and invested in over 180 companies.

Christian Sinding, CEO of EQT AB, said: “This is an important step on our path of focusing on
investment strategies which can fully utilize EQT’s governance and impact ownership model. We are
delighted to have found such a great new home for the Credit business segment and the dedicated
team of credit specialists. Together with Bridgepoint, the Credit platform is well positioned to capture
the future growth prospects and develop its offering even further. I would like to take this opportunity to
thank Andrew Konopelski and the entire Credit team for their contribution to EQT. It has been a great
collaboration over the last 12 years and I wish them well in the next stage of their journey.”

Andrew Konopelski, Head of EQT Credit, continued: “As part of EQT, we have developed a diversified
credit platform capable of investing across the capital structure. We have grown and implemented a
thematic and due-diligence focused investment approach and an operational mindset. The resilience
of the portfolios during these unprecedented times demonstrates the strength of our model as we look
toward the future. We are excited by the considerable opportunities that we see ahead for private
credit. With Bridgepoint as our partner, we will undoubtedly continue our growth path together while
sharing similar values. I would like to thank the entire EQT community for their support over the
years.”

William Jackson, Managing Partner at Bridgepoint, added: “This moves our credit strategy and
ambitions significantly forward and provides further diversification for the Bridgepoint Group in line with
our strategic objective of offering a broader range of compelling middle market focused alternative
asset investment strategies. It will also broaden Bridgepoint Credit’s geographic exposure with an
enhanced presence in the Nordic region, Germany and the US, adding to our existing teams in
London and Paris.”
PRESS RELEASE 18 June 2020
EQT AB (publ)
Regeringsgatan 25
SE-111 53 Stockholm
Sweden Tel: +46 8 506 55 300
VAT number: SE556849418001

The Credit segment will be reported as discontinued operations in the half year report. The
Transaction is not expected to have a material impact on EQT AB’s central functions. The proceeds
are expected to be used to continue to deliver on EQT’s defined growth strategy.
The Transaction is subject to customary closing conditions, including regulatory, anti-trust and certain
fund investor clearances, with completion expected to take place in the fourth quarter of 2020. The
parties have agreed not to disclose the terms of the Transaction. JP Morgan has acted as financial
advisor and Kirkland & Ellis and Travers Smith as legal advisors to EQT on the Transaction.

Contact
Kim Henriksson, CFO, +46 8 506 55 300
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a differentiated global investment organization with a 25-year track-record of consistent
investment performance across multiple geographies, sectors, and strategies. EQT has raised more
than EUR 62 billion since inception and currently has around EUR 40 billion in assets under
management across 19 active funds within three business segments – Private Capital, Real Assets
and Credit.

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

The EQT AB group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include
general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has
offices in 17 countries across Europe, Asia Pacific and North America with more than 700 employees.

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

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Bridgepoint to acquire EQT’s private debt business

Bridgepoint

Bridgepoint, the international alternative asset manager, is to acquire EQT Credit for an undisclosed sum. The acquisition will be combined with Bridgepoint’s existing credit business, with the enlarged group having total AuM of c.€7 billion.

Commenting on the acquisition, Bridgepoint managing partner William Jackson said: “This moves our credit strategy and ambitions significantly forward and provides further diversification for the Bridgepoint Group. This is in line with our strategic objective of offering a broader range of compelling middle market focused alternative asset investment strategies.

“It will also broaden Bridgepoint Credit’s geographic exposure with an enhanced presence in the Nordic region, Germany and the US, adding to our existing teams in London and Paris,” he said.

Established in 2008, EQT Credit has total AuM of €5.6 billion* across its two core strategies of Direct Lending and Special Situations, a team of 27 investment professionals based in London, New York, Munich and Stockholm and employs approximately 40 colleagues in total.

The transaction is subject to regulatory and other consents and is scheduled to complete in the fourth quarter of 2020.

Advisers to Bridgepoint in this transaction included: Rothschild & Co (M&A), PwC (financial & tax dd, structuring), Clifford Chance and Simpson Thacher (legal), Lockton (insurance).

*comprises fee generating AUM and further committed but undrawn capital.

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Payfone raises $100 million led by the Apax Digital Fund

Apax Digital

18 June 2020

Investment will accelerate privacy-first customer identity platform with strategic acquisitions 

New York NY, June 18, 2020: Payfone announced it has raised $100 million to acquire strategic assets, further strengthen its machine learning capabilities, and build a cross-industry consortium to secure digital transactions and experiences. The investment was led by funds advised by Apax Digital, the growth equity team of Apax Partners.

Payfone raises $100 million led by the Apax Digital Fund

Payfone is setting a new standard for digital identity verification and authentication. Its customer identity platform enables the world’s largest financial institutions, healthcare organizations and technology companies to bring speed and security to their onboarding, digital servicing and call center processes.

Payfone’s authentication solutions, including its unique Trust Score™ tool, are built on ten years of proprietary phone intelligence that enable Payfone to anonymously measure a phone number’s reputation and risk with real-time processing of behavioral signals. Payfone’s platform instantly detects burner phones, spoofed calls, real-time SIM swap fraud, and synthetic identities, while removing friction from legitimate transactions. Payfone also provides call verification solutions that run passively in the background of a phone call, allowing faster issue resolution.

Rodger Desai, CEO of Payfone, said, “The mobile phone is rapidly becoming the secure passport for navigating our digital lives. With one in three US consumers already authenticated by Payfone, this investment accelerates our ability to set the standard for the authentication process. As we build out a cross-industry consortium, more enterprises will be able to access Payfone’s real-time fraud and risk signals to prevent account takeovers while passing more transactions.”

Daniel O’Keefe, Managing Partner of Apax Digital said, “Identity is the key enabling technology for the next generation of digital businesses. Payfone’s Trust Score™ is core to the real-time decisioning that enterprises need in order to drive revenue while thwarting fraud and protecting privacy.”

Zach Fuchs, Principal of Apax Digital added, “Payfone’s technology enables frictionless customer experience, while curbing the mounting operating expense caused by manual review.” Concurrent with the investment, Mr. O’Keefe and Mr. Fuchs will join Payfone’s board of directors.

Joining the investment round are new investors Sandbox Insurtech Ventures and Ralph de la Vega, the former Vice Chairman of AT&T. Existing investors MassMutual Ventures, Synchrony, Blue Venture Fund, Wellington Management LLP, and former CEO of LexisNexis Andrew Prozes also participated.

For more information about Payfone’s suite of identity verification and authentication solutions, visit payfone.com.

About Payfone

Payfone is a rapidly growing software and data analytics company based in New York. Payfone’s customer identity platform secures the digital experiences of the banking, insurance, telecommunication, retail, and healthcare industries. Its patented Trust Score™ enables enterprises to pass more digital transactions while thwarting fraud attacks. For the latest updates follow us at https://www.linkedin.com/company/payfone.

About Apax Digital 

The Apax Digital Fund specializes in growth equity and buyout investments in high-growth enterprise software, consumer internet, and technology-enabled services companies worldwide. The Apax Digital team leverages Apax Partners’ deep tech investing expertise, global platform, and specialized operating experts, to enable technology companies and their management teams to accelerate the achievement of their full potential. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of over $50 billion. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.

Media Contacts:

For Payfone
Emily Riley | +1 914-330-1128 | pr@payfone.com

For Apax Digital
USA Media: Todd Fogarty, Kekst CNC | +1 212-521-4854 | todd.fogarty@kekstcnc.com
UK Media: Matthew Goodman / James Madsen, Greenbrook | +44 20 7952 2000 | apax@greenbrookpr.com

 

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Fortino Capital Partners invests in Sigma Conso to accelerate growth of this Corporate Performance Management software player

Fortino Capital

BRUSSELS, 17 June 2020 – Fortino Capital Partners, a Benelux-based growth equity investor in software, today announces its investment in Sigma Conso, a fast growing Corporate Performance Management software provider. Sigma Conso, headquartered in Brussels, employs over 40 FTEs and has local offices in Western-Europe and Asia serving over 600 customers.

Initially focused on consolidation software, today Sigma Conso addresses all needs of CFO in terms of Corporate Performance Management (i.e., consolidation, intercompany reconciliations, budgeting, planning, and management reporting). Along with its software offering, Sigma Conso differentiates itself through its deep financial expertise, offering training and advisory services to its customers. Sigma Conso helps out customers to generate transparency on the performance of its business, more than ever a must in these Covid-19 times.

Sigma Conso is active in 20 countries, serving over 600 customers, varying from mid-sized businesses to large companies (e.g., D’Ieteren, Sofina, Proximus, Besix,, Umicore, Eiffage and CMB).

Dominique Galloy came on board as CEO and owner in 2006. Over the last 14 years Dominique has grown Sigma Conso together with his team into an international and highly recognised software company.

Fortino Capital recognizes Sigma Conso’s leading role in the Corporate Performance Management market and the credentials the team has built up. Financial software is a core segment for Fortino Capital as B2B software investor, after its investment into MobileXpense, a leading European expense management provider.

Fortino Capital acquires Sigma Conso alongside management to further grow and expand the company internationally. This is the 20th B2B software investment by Fortino Capital, and the 6th platform investment of its Growth Private Equity Fund I.

Dominique Galloy, CEO of Sigma Conso: “Over the past two decades, we have become a sizeable European player by serving our customers with great software and deep expertise. Together with Fortino Capital, a real expert in B2B software, we are now ready for an accelerated growth phase together. I am personally very excited about the prospects of the business. With the support of Fortino Capital, I am committed to further serve our customers in a great way.”

Filip Van Innis, Investment Director at Fortino Capital: “We are impressed by Sigma Conso’s strong track record. Being a company at the core of our Growth Fund strategy, i.e., mission critical software in an expanding market, we are delighted to support Dominique and his team going forward. As much as we are pleased to welcome Patrick Van Deven, as Chairman of the Board. Patrick is a seasoned software executive who made his career at both SAS and SAP.”

About Sigma Conso

Sigma Conso, founded in 2002, provides Corporate Performance Management software together with training and advisory services. The Company has a global presence, evidenced by its diversified customer base in 20 countries and local offices in Europe and Asia. For more information, please visit www.sigmaconso.com.

About Fortino Capital Partners

Fortino Capital Partners is a European enterprise software investor, managing a €240m growth private equity fund and two venture capital funds for earlier stage software opportunities.  The firm has offices in Antwerp and Amsterdam. Fortino Capital’s investment portfolio includes MobileXpense, Efficy CRM, Odin Groep, Tenzinger, Maxxton, LetsBuild, Teamleader, among others. For more information, please visit
www.fortinocapital.com.

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Capricorn Digital Growth Fund announces first investment in Dutch AI company Gradyent while also adding new investors bringing the total fund size over € 50 million

Capricorn

Leuven, Belgium: 16 June 2020 – Capricorn Partners announced today the intermediary closing of its Capricorn Digital Growth Fund bringing commitments to over € 50 million. At the same time the fund closed its first investment together with Helen Ventures and ENERGIIQ, jointly committing € 1.9 million to Gradyent, a Dutch energy analytics solution company. Gradyent has developed an artificial intelligence (AI) cloud-based platform that supports the management and optimisation of district heating networks, making them more sustainable and cost-effective. The investment allows Gradyent to further develop its innovative software and to commercialise its services.

Katrin Geyskens, Partner at Capricorn said: “Serendipity allows us to welcome Noaber Ventures, the impact investment arm of the Dutch Noaber Foundation and a number of private investors to join our Capricorn Digital Growth Fund, at the same time as we are announcing the first investment of this fund. Gradyent is a perfect illustration of our investment strategy focusing on data driven companies. The drive towards accelerated digitalization and the smart use of data has been clearly underpinned during the current pandemic. Hence we are convinced that our Capricorn Digital Growth Fund will see AI based interesting and rewarding investment opportunities both in digital health and industrial applications.”

Strong investment consortium for Gradyent

The investment in Gradyent of almost € 2 million comes from a European consortium of investors including the Capricorn Digital Growth Fund, Helen Ventures (Finland) and ENERGIIQ (Netherlands). Together with existing investor henQ, the syndicate will support Gradyent with expertise and access to their international networks throughout Europe.

Gradyent was founded early 2019 by a team of seasoned entrepreneurs with years of national and international experience in energy, tech and artificial intelligence (AI). This combined with the expected positive environmental impact and significant market potential of their AI-powered solution for heating networks, makes Gradyent a very attractive investment target.

Maarten Lambert, investment associate at Capricorn Partners, says: “Gradyent is a perfect example of how AI technology can transform raw data into actionable insights. We are proud to be part of a company that has the ambition to support businesses on their journey to become more energy efficient and make our planet a better place to live.”

Optimising the management and efficiency of district heating networks

Many district heating networks run on legacy control systems with often outdated software solutions that provide limited insight into the network’s efficiency – or lack of it. This gets in the way of innovation and constrains optimisation.

Gradyent’s solution helps district heating companies participate in the sustainability transition by improving the management and efficiency of district heating networks without compromising stability and reliability. Gradyent uses digital twin technology (a replica of real-world objects) built by a unique combination of hydro- and thermodynamic modelling combined with AI. Its AI cloud platform not only provides insight into heating networks but also determines how to optimise them and improve overall efficiency. The solution leads to a significant reduction in CO2 emissions and users immediately see a positive financial impact as the solution provides a rapid return on investment. Gradyent is showing promising results with its first customers.

As Mikko Huumo, director of Helen Ventures, explains, “In the coming years, energy companies, including Helen, will transform district heating networks into sustainable CO2-neutral heating systems. In practice, large fossil fuel-fired power plants will be replaced with smaller decentralised heat sources and this will increase complexity in the network. Digital tools, like Gradyent’s AI platform, will be needed to provide heat efficiently and reliably to customers every single day.”

Continuing the journey

Gradyent will use the funding to commercialise its services and expand its efforts particularly in AI and software development.

Hervé Huisman of Gradyent: “More than half of the world’s energy demand is in the form of heating, and our team believes there is a huge potential for improving sustainability by smart optimisation and AI. Our first projects with district heating customers in the Netherlands confirm the potential of our solution, and we are excited about extending the offering to our growing Dutch and international customer base in the coming period. We are extremely proud that we can now continue our journey with Capricorn, Helen Ventures and ENERGIIQ on board. These parties can all add relevant insights and provide access to energy, digital growth and district heating networks. Together with our current investor henQ, we have the perfect foundation for our next chapter!”

Rafael Koene, fund manager at ENERGIIQ: “The ENERGIIQ investment team is impressed with Gradyent and the investment consortium that was formed. We are convinced – also because of the strong management team – that Gradyent will experience strong growth in the coming years and that many heating networks will start using Gradyent’s AI platform. The growth will lead to significant CO2 reduction.”

More infor on Gradyent‘s website.

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EQT Infrastructure to sell Hector Rail Group

eqt

  • EQT Infrastructure to sell Hector Rail Group, the largest private rail freight operator in Scandinavia with significant operations in Germany, to Ancala
  • During EQT’s tenure, Hector Rail has grown revenue organically into new segments, geographies and customers, with an 80 percent growth of both revenues and the fleet
  • Hector Rail has increased its capacity offering reliable and environmentally friendly transportation solutions

The EQT Infrastructure II fund (“EQT Infrastructure” or “EQT”) today announced that it has entered into a definitive agreement to sell Hector Rail Group (“Hector Rail” or “the Company”) to Ancala’s European Infrastructure Fund II. Founded in 2004 and headquartered in Stockholm, Sweden, Hector Rail is the largest private rail freight operator in Scandinavia with significant operations in Germany.

With a fleet of over 100 locomotives and 400 employees, including approximately 250 train drivers, Hector Rail transports essential goods for a wide range of customers. Hector Rail also operates a growing domestic platform in Germany, the largest rail freight market in Europe, from which it focuses on attractive niche segments, such as energy and intermodal flows.

Since acquired by EQT Infrastructure in November 2014, Hector Rail’s focus has been on driving sustainable growth, expanding into new segments and geographies, and diversifying the customer base while providing environmentally friendly transport solutions. Hector Rail has also executed on an ambitious sustainability agenda by providing essential transportation services to industries in an environmentally sustainable way.

Masoud Homayoun, Partner and Investment Advisor to EQT Infrastructure, adds: “Hector Rail has continued to grow and gain market share while fostering a strong, safety-oriented culture, sustainable operations and high-quality services to all customers. Management and the entire Hector Rail team have done a fantastic job. With the ever-increasing demand for environmentally friendly transport solutions, Hector Rail is well-positioned for continuous growth under Ancala’s ownership”

Claes Scheibe, Managing Director of Hector Rail AB, added: “With the support from EQT, Hector Rail has grown by adding a range of new freight services across the Scandinavian and German rail network, and supported the growth of the European economy through the transportation of essential goods and materials. We continue to see strong demand for our services and look forward to entering the next phase of growth together with our new owners.”

Stig Kyster-Hansen, Managing Director of Hector Rail GmbH, further commented: “Under EQT’s ownership, we have in a short period of time been able to build a strong and scalable platform in Germany. We see great potential for further growth in this market and look forward to continuing our journey together with Ancala”

Deutsche Bank AG acted as financial advisor and Advokatfirman Vinge KB as legal advisors to EQT Infrastructure.

Contact
Masoud Homayoun, Partner and Investment Advisor to EQT Infrastructure, +46 73 402 1081
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a differentiated global investment organization with more than EUR 62 billion in raised capital and around EUR 40 billion in assets under management across 19 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

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

About Hector Rail
Hector Rail Group is an independent rail freight operator, providing traction and related services across Scandinavia and Germany. We offer environmentally friendly transportation solutions on rail, to industrial companies, forwarders, and other rail operators. The Group consists of Hector Rail AB, Sweden’s largest private rail freight company, and Hector Rail GmbH, a German operator servicing both international traffic to Scandinavia and the domestic German market

More info: www.hectorrail.com

About Ancala Partners
Ancala Partners LLP is an independent infrastructure investment manager focused on delivering enhanced returns from mid-market infrastructure investments across Europe. Ancala adopts a proactive approach to the origination and asset management of investments to create value for its investors.

More info: www.ancala.com

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EQT introduces largest ever ESG-linked Subscription Credit Facility

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  • EQT launches ESG-linked fund level bridge facility – first of this size in the global fund financing markets
  • Backed by a strong syndicate of leading global financial institutions
  • Reinforces EQT’s commitment to an integrated approach to sustainability and responsible ownership – enables execution on EQT’s elevated societal ambitions

EQT today announced the entry into an ESG-linked Subscription Credit Facility related to the Private Equity business line (the “SCF” or “bridge facility”). This is an important milestone on EQT’s sustainability and transparency journey, as the firm seeks to encourage the systemic change needed to reward positive contributions to society. The ESG-linked SCF is yet another example of how EQT will inspire and incentivize portfolio companies in improving their ESG (environmental, social and governance) performance. Adding an ESG perspective into the financing structure manifests EQT’s commitment to an integrated sustainability approach and alignment with the global sustainability goals.

The SCF, which is currently at EUR 2.3 billion and has an upper limit of around EUR 5 billion, is backed by a syndicate of leading global financial institutions, including BNP Paribas and SEB acting as Sustainability Coordinators and BNP Paribas as Agent and Sustainability Agent. It is the very first ESG-linked fund bridge facility of this size in the global fund financing markets. The bridge financing facility will be coupled with a pricing mechanism designed to accelerate the portfolio companies’ ESG performance. The pricing mechanisms are directly linked to EQT’s firm wide elevated societal targets around diversity and climate as well as EQT’s proven governance model and strong commitment to transparency. The pricing mechanism for the SCF is designed to incentivize the performance of portfolio companies in the areas of i) gender equality on the board of directors and ii) renewable energy transition, supported by iii) a fundamental sustainability governance platform.

EQT and the future portfolio companies will work closely with dedicated and experienced advisors to develop customized roadmaps to deliver on the elevated societal ambitions, with measurable KPIs on which they will report quarterly and be audited annually. The aggregated results from the portfolio companies’ ESG efforts will later be compared with the pre-set KPI targets. The portfolio’s averaged fulfilment rate will impact the ESG-bridge facility’s interest rate. Or explained in a simplified manner – the better ESG progress the portfolio companies show, the better the financing terms. A win-win situation, as portfolio companies become more resilient through these actions.

Per Franzén, Partner and Co-Head of the EQT Private Equity Advisory Team, commented: “This is a game changing moment for EQT but also the private equity industry, further evidencing how our industry also can benefit from sustainable financing. For us, ESG plays a crucial role in how EQT future-proofs companies and with an ESG-linked bridge facility, we bring a new dimension to EQT’s value creation process. By linking sustainability objectives to hard incentives, we are really challenging ourselves and the portfolio companies to fully embrace the potential of sustainability – it’s really quite simple, sustainable business is good business and creates better value for all stakeholders.”

Therése Lennehag, Head of Sustainability at EQT, added: “The entire financial community faces a challenge in accessing reliable and comparable ESG data – with this ESG-linked financing facility, we actively contribute to increasing the availability of high-quality ESG data, critical for the financial markets to be able to build a resilient and regenerative economy. We need innovation to accelerate system-wide transformation and it is particularly rewarding that we could launch the SCF despite the challenging marketplace we are currently seeing. It is a strong signal that leading global financial institutions are ready to partner with responsible investors and owners to ensure we all optimize for risk, returns and positive real-world outcomes.”

Guillaume Hartog, Head of Subscription Finance at BNP Paribas: “BNP Paribas is a strong promoter of sustainable finance, notably in the bond and loan markets. Private equity is still very much a new frontier and it has been a privilege to support such a sustainability pioneer as EQT. By closely aligning their sustainability and financing strategies through the ESG structure featured by this subscription facility, EQT established a new benchmark transaction for subscription finance.“

Christopher Flensborg, Head of Climate and Sustainable Finance at SEB: ”Having worked with sustainable finance for more than a decade, being involved as a pioneer across the world and in most sectors, I can tell that the work and commitment we have seen throughout our engagement with EQT on this facility are both impressive and encouraging; and despite that we all have a long way to go, it brings both hope and trust.”

EQT has long considered sustainability an integral part of its business and core to identifying and capturing value creating opportunities, and embarked on its dedicated sustainability and transparency journey over a decade ago. EQT was an early signatory of the UN PRI, has developed an industry leading sustainability framework to inspire and monitor development within its portfolio of companies while  constantly raising the bar in how the firm  integrates sustainability throughout its entire investment and ownership processes.

Contact
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a differentiated global investment organization with a 25-year track-record of consistent investment performance across multiple geographies, sectors and strategies. With strong values and a distinct corporate culture, EQT manages and advises funds and vehicles that invest across the world with the mission to generate attractive returns to the fund investors.

EQT’s talent base and network allow it to pursue a thematic investment strategy and distinctive value creation approach, with the aim of future-proofing the companies which EQT invests in, creating superior returns to EQT’s investors and making a positive impact with everything EQT does. EQT has more than EUR 62 billion in raised capital since inception, currently around EUR 40 billion in assets under management across 19 active funds within three business segments – Private Capital, Real Assets and Credit.

EQT is a thought leader within the private markets industry with deep expertise in responsible and long-term ownership, corporate governance, operational excellence, digitalization and sustainability. EQT has offices in 17 countries across Europe, Asia Pacific and North America with more than 700 employees. The EQT AB group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds.

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

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