INVESTMENT AB LATOUR (PUBL)
Johan Hjertonsson, CEO
For further information, please contact:
Johan Hjertonsson, CEO Latour, +46 702 29 77 93
Anders Mörck, CFO Latour, +46 706 46 52 11
Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listed holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of nine substantial holdings with a market value of about SEK 68 billion. The wholly-owned industrial operations has an annual turnover of SEK 15 billion.
Paris, 17 December 2020 – Eurazeo Capital has completed its investment in Questel alongside IK Investment Partners, Raise Investissement and the management team. The transaction involved the purchase of 100% of Questel’s capital.
Questel is a major intellectual property solutions provider that operates worldwide and employs 900 people in 30 countries, developing SaaS products and an automated brand services and patent filing platform. The company works with close to 6,000 clients, including a number of large multinationals, offering end-to-end collaborative patent and brand management solutions across the innovation and intellectual property cycle, from invention through to filing and renewal.
Questel’s enterprise value is €915 million. Eurazeo and IK have each invested an initial amount of around €175 million and together will hold a majority stake in the company. Eurazeo China Acceleration Fund has also invested in Questel.
About Eurazeo
• Eurazeo is a leading global investment company, with a diversified portfolio of €18.8 billion in assets under management, including €13.3 billion from third parties, invested in over 430 companies. With its considerable private equity, real estate and private debt expertise, Eurazeo accompanies companies of all sizes, supporting their development through the commitment of its nearly 300 professionals and by offering in-depth sector expertise, a gateway to global markets, and a responsible and stable foothold for transformational growth. Its solid institutional and family shareholder base, robust financial structure free of structural debt, and flexible investment horizon enable Eurazeo to support its companies over the long term.
• Eurazeo has offices in Paris, New York, Sao Paulo, Seoul, Shanghai, Singapore, London, Luxembourg, Frankfurt, Berlin and Madrid.
• Eurazeo is listed on Euronext Paris.
• ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA
EURAZEO CONTACTS PRESS CONTACT
PIERRE BERNARDIN
HEAD OF INVESTOR RELATIONS
mail: pbernardin@eurazeo.com
Tél : +33 (0)1 44 15 16 76
VIRGINIE CHRISTNACHT
HEAD OF COMMUNICATIONS
mail: vchristnacht@eurazeo.com
Tel: +33( 1 44 15 76 44
FSN Capital V* has signed an agreement to acquire 100% of TASKING, a leading provider of software tools for autonomous driving development, from Altium Limited.
TASKING offers high-performance, embedded software development tools for automotive OEMs and Tier 1 suppliers. Its strategic partnerships with semiconductor manufacturers, OEMs, and suppliers makes TASKING a leading player in the embedded software development industry for advanced driving assistance systems (ADAS) and autonomous driving.
TASKING provides complete development environments that allow software engineers to create reliable, safe, and high-performance embedded software applications. Over 50,000 engineers around the globe rely on TASKING compilers and debuggers every day for their development needs and millions of cars are running on code developed with TASKING’s tools.
Robin Mürer, Partner at FSN Capital Partners (investment advisor to the FSN Capital Funds) , commented: “The automotive industry is seeing a fundamental shift to software powered capabilities – not least to achieve autonomous driving over time. At the same time, the requirements and regulations for software in automotive applications are disparately higher than in most other industries. TASKING is a market-leader in development tools for safe, secure and performant software development. We are excited to partner with Franz Maidl and the highly skilled TASKING team in Germany, the Netherlands, Russia, the US, China, India and Japan as we see opportunities to expand TASKING’s product range and drive their presence with customers around the world.”
Franz Maidl, GM at TASKING, said: “The acquisition will establish TASKING as a leading independent software provider for safety critical applications. FSN Capital will provide TASKING with the flexibility to fuel our many growth opportunities as a standalone company. The backing of FSN Capital is testament to the tremendous track record our products and employees have delivered so far, as well as the growth opportunity and demand in our markets. The entire TASKING team is thrilled to continue the journey together and is looking forward to a bright future for our solutions, our team, and especially our customers”.
The transaction was executed on a proprietary basis by FSN Capital V. It is subject to approval from applicable authorities.
FSN Capital V was advised by McKinsey, Altos Advisors, PwC, Latham Watkins, Crosslake International, Frank Partners and Marsh.
* FSN Capital GP V Limited acting in its capacity as general partner for and on behalf of each of FSN Capital V L.P., FSN Capital V (B) L.P. and FSN Capital V Invest L.P.
For more information please contact the following persons at FSN Capital Partners (investment advisor to the FSN Capital Funds):
This Press Release does not constitute an offer or solicitation in any jurisdiction to invest in FSN Capital VI and should not be considered to be an invitation or inducement to engage in any investment activity.
Exoskeleton technology has been one of the more interesting developments in the world of robotics: Instead of building machines that replace humans altogether, build hardware that humans can wear to supercharge their abilities. Today, German Bionic, one of the startups designing exoskeletons specifically aimed at industrial and physical applications — it describes its Cray X robot as “the world’s first connected exoskeleton for industrial use,” that is, to help people lifting and working with heavy objects, providing more power, precision and safety — is announcing a funding round that underscores the opportunity ahead.
The Augsburg, Germany-based company has raised $20 million, funding that it plans to use to continue building out its business, as well as its technology, both in terms of the hardware and the cloud-based software platform, German Bionic IO, that works with the exoskeletons to optimize them and help them “learn” to work better.
The Cray X currently can compensate up to 30 kg for each lifting movement, the company says.
“With our groundbreaking robotic technology that combines human work with the industrial Internet of Things (IIoT), we literally strengthen the shop floor workers’ backs in an immediate and sustainable way. Measurable data underscores that this ultimately increases productivity and the efficiency of the work done,” says Armin G. Schmidt, CEO of German Bionic, in a statement. “The market for smart human-machine systems is huge and we are now perfectly positioned to take a major share and substantially improve numerous working lives.”
The Series A is being co-led by Samsung Catalyst Fund, a strategic investment arm from the hardware giant, and German investor MIG AG, one of the original backers of BioNtech, the breakthrough company that’s developed the first COVID-19 vaccine to be rolled out globally.
Storm Ventures, Benhamou Global Ventures (founded and led by Eric Benhamou, who was the founding CEO of Palm and before that the CEO of 3com) and IT Farm also participated. Previously, German Bionic had only raised $3.5 million in seed funding (with IT Farm, Atlantic Labs and individual investors participating).
German Bionic’s rise comes at an interesting moment in terms of how automation and cloud technology are sweeping the world of work. When people talk about the next generation of industrial work, the focus is usually on more automation and the rise of robots to replace humans in different stages of production.
But at the same time, some robotics technologists have worked on another idea. Because we’re probably still a long way away from being able to make robots that are just like humans, but better in terms of cognition and all movements, instead, create hardware that doesn’t replace, but augments, live laborers, to help make them stronger while still being able to retain the reliable and fine-tuned expertise of those humans.
The argument for more automation in industrial settings has taken on a more pointed urgency in recent times, with the rise of the COVID-19 health pandemic: Factories have been one of the focus points for outbreaks, and the tendency has been to reduce physical contact and proximity to reduce the spread of the virus.
Exoskeletons don’t really address that aspect of COVID-19 — even if you might require less of them as a result of using exoskeletons, you still require humans to wear them, after all — but the general focus that automation has had has brought more attention to the opportunity of using them.
And in any case, even putting the pandemic to one side, we are still a long way away from cost-effective robots that completely replace humans in all situations. So, as we roll out vaccinations and develop a better understanding of how the virus operates, this still means a strong market for the exoskeleton concept, which analysts (quoted by German Bionic) predict could be worth as much as $20 billion by 2030.
In that context, it’s interesting to consider Samsung as an investor: The company itself, as one of the world’s leading consumer electronics and industrial electronics providers, is a manufacturing powerhouse in its own right. But it also makes equipment for others to use in their industrial work, both as a direct brand and through subsidiaries like Harman. It’s not clear which of these use cases interests Samsung: whether to use the Cray X in its own manufacturing and logistics work, or whether to become a strategic partner in manufacturing these for others. It could easily be both.
“We are pleased to support German Bionic in its continued development of world-leading exoskeleton technology,” says Young Sohn, corporate president and chief strategy officer for Samsung Electronics and chairman of the board, Harman, in a statement. “Exoskeleton technologies have great promise in enhancing human’s health, wellbeing and productivity. We believe that it can be a transformative technology with mass market potential.”
German Bionic describes its Cray X as a “self-learning power suit” aimed primarily at reinforcing lifting movements and to safeguard the wearer from making bad calls that could cause injuries. That could apply both to those in factories, or those in warehouses, or even sole trader mechanics working in your local garage. The company is not disclosing a list of customers, except to note that it includes, in the words of a spokesperson, “a big logistics player, industrial producers and infrastructure hubs.” One of these, the Stuttgart Airport, is highlighted on its site.
“Previously, efficiency gains and health promotion in manual labor were often at odds with one another. German Bionic Systems managed to not only break through this paradigm, but also to make manual labor a part of the digital transformation and elegantly integrate it into the smart factory,” says Michael Motschmann, managing partner with MIG in a statement. “We see immense potential with the company and are particularly happy to be working together with a first-class team of experienced entrepreneurs and engineers.”
Exoskeletons as a concept have been around for over a decade already — MIT developed its first exoskeleton, aimed to help soldiers carrying heavy loads — back in 2007, but advancements in cloud computing, smaller processors for the hardware itself and artificial intelligence have really opened up the idea of where and how these might augment humans. In addition to industry, some of the other applications have included helping people with knee injuries (or looking to avoid knee injuries!) ski better, and for medical purposes, although the recent pandemic has put a strain on some of these use cases, leading to indefinite pauses in production.
Providence Equity Partners in Exclusive Negotiations to Acquire a Majority Stake in Leading French Car Classifieds Provider Groupe La Centrale from Axel Springer
Providence would further drive the development of Groupe La Centrale with now-minority shareholder Axel Springer
Providence has a long and successful history of investing in European technology and media businesses
LONDON AND BERLIN — 16 DECEMBER 2020 — Providence Equity Partners L.L.C. (“Providence”), a premier private equity firm that specializes in the media, communications, education, software and services industries, today announced that it has entered into exclusive negotiations for the acquisition of a majority stake in Groupe La Centrale (the “Company”), a leading provider of car classifieds in France, from Axel Springer. Financial terms were not disclosed.
Groupe La Centrale is comprised of four brands through which it covers the entire lifecycle of a vehicle: La Centrale, Promoneuve, Caradisiac and MaVoitureCash. Upon completion, Providence would support the continued development of the Company’s best-in-class, multi-dimensional digital platform and seek opportunities to expand capabilities that will enhance customer satisfaction through investment in value-add services. The transaction will enable Axel Springer to focus even more on its growth and investment strategy in the jobs and real estate sectors, within its digital classifieds offering.
“We believe Groupe La Centrale is an outstanding business underpinned by best-in-class technology, which positions it well for continued leadership and innovation in the French auto classifieds market,” said Karim Tabet, Senior Managing Director at Providence. “Our investment is driven by our conviction that Groupe La Centrale’s well-known brands and capabilities present a significant opportunity for organic growth and service expansion.”
Robert Sudo, Managing Director at Providence, added: “Customers are demanding more products, services and optionality from classifieds providers. Leveraging Providence’s resources and experience and Groupe La Centrale’s world-class digital platform, we believe there is opportunity to add value to both dealers and drivers. Axel Springer’s continued investment is a testament to the Company’s growth potential and we are looking forward to working together alongside François Couffy and his team.”
Stephanie Caspar, President National News Media & Marketplaces at Axel Springer, said: “Groupe La Centrale has established an excellent position in the French market since Axel Springer’s entry, thanks to François Couffy and his excellent team. Together with Providence Equity Partners, we seek to build on this position and continue to develop the Company further in order to increase its value in the long term. At the same time, this transaction is in line with our growth and investment strategy in the Classifieds Media segment, where we want to focus on the two strong pillars of jobs and real estate.”
The proposed transaction would close in the first quarter of 2021, subject to customary closing conditions, including completion of the information and consultation procedures of the Company’s works council and clearance by the requisite antitrust authorities.
Media contacts
Providence Equity Partners
Sard Verbinnen & Co.
Charlie Chichester / Rory King
Prov-SVC@sardverb.com
Axel Springer SE
Jorg Keller
jorg.keller@axelspringer.com
+49 30 2591 77617
About Providence Equity Partners
Providence is a premier global private equity firm with more than $44 billion in aggregate capital commitments. Providence pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989, Providence has invested in more than 170 companies and is a leading equity investment firm focused on the media, communications, education, software and services industries. Providence has a long history of successfully investing in the automotive technology sector. Providence is headquartered in Providence, RI, and also has offices in New York and London. For more information, please visit www.provequity.com
a publisher of SaaS solutions to help listed companies and SMEs / mid-market companies in France with their CSR strategies.
Wednesday, December 16, 2020
Omnes has become a core minority shareholder in Tennaxia by investing more than €8 million in the company through its 3rd generation small cap funds. This marks Omnes’ fifth deal with the latest vintage of its small cap funds. The Small Caps team is also expected to complete strategic external growth in the IoT sector by the end of the year through an additional investment in ABMI (majority holding acquired at the end of 2018).
This means that more than 40% of the €125 million raised through the 3rd generation funds (Omnes Expansion 3 and LCL Expansion 3) in early 2020 with institutional investors, family offices and retail investors (notably through LCL’s private banking and wealth management channels) has been deployed. For reference, the team’s investment strategy is to make minority or majority investments of between €8 million and €15 million in French SMEs that lead their niche segment and operate in BtoB services, BtoC services and industry in particular.
The team actively partners ambitious business leaders and their staff to help them accomplish their operational transformation goals, both through organic and external growth. In addition to an investment multiple of nearly 2.5x, the team’s track record reflects an active external growth policy (on average, one external growth deal per portfolio company) and a large proportion of primary deals.
A SaaS specialist to help French businesses with their ESG strategies
Tennaxia, founded in 2001 by Bernard Fort and Maxime Delorme, is a leader in cloud-based solutions to help listed companies and SMEs / mid-market companies in France with their CSR/EHS strategies. It has developed solutions and services to sustain and enhance businesses’ non-financial performances.
Tennaxia has two interlocking products:
A fully-configurable SaaS platform to manage EHS/CSR strategy coupled with regulatory intelligence solutions that give customers bespoke insight (depending on their activity) into changing regulations (75% of revenue)
Consulting services (spot audits, compliance, etc. – 25% of revenue).
The CSR/EHS reporting market is enjoying significant double-digit growth, driven by (I) strong demand from civil society as a whole, (ii) more stringent regulations and (iii) mounting investor interest in such issues.
The company is targeting revenue in excess of €7 million by the end of March 2021. It currently employs more than 60 people at its offices in Laval, Paris and Lyon.
The aim of the transaction is to enable Tennaxia to pursue and step up its cross-selling and upselling strategy for its existing solutions, to strengthen its sales teams and to attract new customers in France and international markets, notably by leveraging the strategic and exclusive partnerships it has already forged (with Euronext and Bpifrance first and foremost).
Bernard Fort, founding CEO, Tennaxia: “This deal recognises, on an institutional level, the quality of our know-how and our software solutions. With Omnes’ help, we are confident that we can fully tap into Tennaxia’s potential in a growth market. We have built a very strong company that is trusted by our customers and are now finding ways to push ahead with our development, particularly in responsible investing (ESG) and international markets.”
Frédéric Mimoun, Senior Director, Omnes: “This growth capital deal has come about after more than twelve months of direct dialogue with Tennaxia’s founding chairman. Our ambitious growth plan is based both on the company’s position as a trailblazer in a high-potential growth market and on the quality of its tried-and-tested software solutions in SaaS mode.”
Omnes Capital is being partnered in this “limited” LBO (less than 2x EBITDA) by Bpifrance and Arkea Capital, a subsidiary of Arkea, through its investment vehicles Arkea Capital Investissement (historical shareholder of Tennaxia) and Arkea Capital 2.
Parties:
Founder / Shareholder managers: Bernard Fort / Maxime Delorme and Christophe Remy
Independent directors: Bernard Bourigeaud and Isabelle Saladin
Omnes (LCL Expansion 3, LCL PME Expansion 3 and Omnes Expansion 3):
Frédéric Mimoun, Senior Director
Victor Versmee, Associate
Co-investors:
Arkea Capital (Arkea Capital Investissement and Arkea Capital 2):
BOSTON – TA Associates, a leading global growth private equity firm, today announced that it has completed a significant growth investment in The Benecon Group (“Benecon” or “the Company”), a leading developer and manager of self-funded medical benefit programs. Financial terms of the transaction were not disclosed.
Founded in 1991 by Samuel Lombardo and headquartered in Lititz, Pennsylvania, Benecon helps design and implement self-funded health plans for small-and-medium-sized businesses (“SMBs”). Via its Actuarial, Compliance, Finance and Producer Services divisions, Benecon offers a full suite of services for thousands of public and private employers across the United States. Benecon’s subsidiary, ConnectCare3, provides wellness consulting and clinical services for Benecon members, including patient advocacy, nurse navigation and chronic disease management. Benecon has enjoyed double digit annual growth for the past 10 years and has been cited by Inc. magazine on four occasions as among the 500 fastest growing companies in America.
“We are thrilled to partner with the Benecon team,” said Jason Mironov, a Director at TA Associates who has joined the Benecon Board of Directors. “Benecon offers a unique model that allows public and private companies to more efficiently self-fund their employee medical benefit programs by leveraging the actuarial prowess and purchasing power of a national network, effectively lowering healthcare costs for thousands of employer groups and hundreds of thousands of members.”
“We owe our success in addressing the health insurance needs of middle market companies to our scale, our well-established and trusted relationships with third-party brokers, stop-loss providers and third-party administrators, and a strong track record built over nearly 30 years,” said Samuel Lombardo, Founder, Chairman and CEO of Benecon. “Given our compelling product offering, we see a number of opportunities to accelerate Benecon’s historically strong organic growth. With their decades of experience investing in the healthcare and business services sectors, we are confident that TA is the right financial partner to help us in these efforts and we welcome them as an investor in Benecon.”
“TA’s longtime commitment to supporting efficiency, quality care and cost containment in the U.S. healthcare system is directly aligned with our mission at Benecon,” said Matthew Kirk, President of Benecon. “Healthcare cost reduction is particularly relevant today, given pandemic-induced spending pressures for businesses of all sizes, and it is gratifying to play a role in this effort. Our partnership with TA marks an exciting new chapter for Benecon that we believe will see meaningful additional growth for the company.”
“A number of factors continue to drive growth in the self-funded medical benefit market, including a need for better cost management and greater control over plan design,” said Michael Berk, a Managing Director at TA Associates who has also joined the Benecon Board of Directors. “While the companies that Benecon serves are the largest category of employers in the U.S., they remain underrepresented in terms of businesses enrolled in self-funded healthcare plans. Given this large and underpenetrated addressable market, we expect ongoing and significant growth opportunities for Benecon.”
Financing was provided by funds managed by the Credit Group of Ares Management and Varagon Capital Partners. Griffin Financial Group served as financial advisor to Benecon. Goodwin Procter provided legal counsel to TA Associates.
About Benecon
Founded in 1991 by Samuel Lombardo, The Benecon Group specializes in innovative and effective self-funded employee benefit solutions for both the private and public sectors. Benecon’s mission is to help employers effectively control benefit plan expenditures and design programs that meet the strategic needs of the employer and the personal needs of the employees. Benecon manages 14 Consortium and Cooperative programs, offering health benefit solutions for any industry, and has a full suite of services, providing expert support through its Actuarial, Compliance, Finance and the Producer Services Divisions. Benecon offers the clinical services and wellness consulting services of ConnectCare3, Benecon’s sister company, providing an additional benefit to those who are members of Benecon’s self-funded health benefits consortiums and cooperatives. Benecon is a leading General Agent for Producer Partners. For more information, please visit www.benecon.com.
About TA Associates
TA Associates is a leading global growth private equity firm. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high quality growth companies. TA has raised $33.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $3 billion per year. The firm’s more than 100 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA Associates can be found at www.ta.com.
FSN Capital has signed an agreement to acquire a 45% stake in Obton Group and enter into a partnership with the founders and management. Obton Group is a specialized alternative investment provider developing, structuring, and managing solar photovoltaic “solar PV” projects on-behalf of ~4,000 high net worth investors.
Obton Group has grown sales / EBIT at 35% / 45% CAGR respectively since the company was founded in 2008, and today manages almost 1 GW of solar PV power making it the 9th largest solar PV manager in Europe. The solar PV business focuses on the entire development value chain from site selection to asset management through local operations and joint venture partners in 8 markets, and enjoys tremendous tailwind from the ongoing shift to renewable energy as the world battles global warming and climate change.
The management team and founders of Obton Group, who will remain in leading positions at the company, were looking for a partner to help accelerate growth and develop the company through its next phase. To achieve this goal, management designed a narrow one-round process with a few selected sponsors before FSN Capital was granted exclusivity. FSN Capital emerged as the preferred partner to management due to strong alignment on values, vision, and plans for the future. Throughout the partnership FSN Capital will seek to support management’s ambitious growth plans which include developing more avenues for raising capital and delivering on the existing significant solar PV pipeline.
Lars Denkov, Partner at FSN Capital Partners (investment advisor to FSN Capital) sees Obton Group as an attractive investment opportunity: “At FSN, we have a strong belief that the green transition of the energy system towards renewable energy is one of the most interesting investment themes for the coming decades. As one of the largest and most experienced developers, managers and investors in solar PV in Europe, the Obton Group is very well-positioned in this rapidly growing industry. Obton is a unique and very well-run company, which in relatively few years has succeeded in becoming one of the 10 largest administrators of solar parks in Europe. We are incredibly proud that the founders and leaders at Obton have chosen FSN Capital as their partner for the growth journey ahead, and we look forward to working with Anders Marcus and his team.”
The investment in Obton Group is in line with FSN’s strong strategic focus on ESG and its general ambition to contribute positively to the development of society. In the much-needed transition from a black to a green energy system, one of the tasks is to replace old-fashioned fossil-fired power plants with renewable energy from solar energy. As such Obton Group directly contributes to several of the United Nations Sustainable Development Goals, specifically SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). Obton Group is similar to FSN Capital a signatory of the Principles for Responsible Investment.
Anders Marcus, CEO and Co-founder at Obton Group further adds: “Obton is now the 9th largest administrator of solar parks in Europe. With more than 1,000 solar projects to date, we are an experienced player in the solar power industry, which is undergoing a rapid development that looks set to continue for many years to come. This is just the beginning of the global green energy revolution, which will change the way we think about climate, energy and infrastructure. We have long had a desire to bring some stronger competencies into the company in the form of a larger investor who can contribute even more international knowledge. We now get that with FSN Capital’s entry into the company. When looking for a potential partner, FSN Capital quickly stood out due to their vision and ambition for the company as well as shared values with the Obton Group. We are both proud and happy to be able to attract such a competent investor.”
The transaction is subject to approval from relevant authorities and is expected to close in the first half of 2021.
FSN Capital was advised by BCG, Plesner, PwC, Nomura Greentech, Colliers, Lincoln International, Frank Partners, White & Case and Marsh. Nordea is providing an ESG-linked financing facility in support of the company’s growth strategy.
For more information please contact the following persons at FSN Capital Partners (investment advisor to the FSN Capital Funds):
LONDON, December 15, – Liverpool Victoria Financial Services Limited (“LV=”), the savings, retirement and protection group, is pleased to announce that it has toy reached an agreement on the terms of a transaction with funds advised by Bain Capital Credit LP (“Bain Capital”), a leading global private investment firm, to acquire LV=.
Bain Capital will pay £530m to acquire LV=’s savings & retirement and protection businesses, representing a multiple of 0.9x for the Solvency II Own Funds[ ] of £606m as at September 2020 and a multiple of 1.05x for Economic Own Funds[ ] of £506m. Under the proposal LV=’s With-profits business will be ring-fenced in a separate fund and closed to new business. The capital available for distribution is expected to increase by up to 40% as a result of the transaction and will be used to increase payments to With-profits members as their policies mature. Their long-term interests will continue to be protected by an experienced With-profits Committee.
The acquisition is subject to regulatory approval and approval from LV= members. It is expected to complete by the end of 2021, subject to the conclusion of the legal process.
Alan Cook, Chairman of LV=, commented: “As a newly standalone life and pensions business in an increasingly competitive market, the Board recognised that LV= required significant long-term investment to be sustainable. This transaction is the culmination of an extremely thorough and robust strategic review – followed by a structured sale process to secure the best long-term future for our members, employees, other stakeholders and the business. The Board is delighted to have secured an attractive price and unanimously agreed that the transaction with Bain Capital presents an excellent financial outcome for all our members, as well as offering an unrivalled commitment to LV=’s future prospects, business and people. We look forward to engaging fully with our members in advance of a member vote in the first half of 2021.”
Mark Hartigan, CEO of LV= said: “The partnership with Bain Capital recognises the opportunity to further invest to develop LV= at a time when it is well positioned, growing market share, expanding its products and trading resiliently, despite the pandemic. While our corporate structure will change, our culture and values remain the same. The Board is excited by the opportunities it creates for our people, partners and customers – enabling the LV= brand and business to further develop as a major force in the UK life insurance market.”
Matt Popoli, Global Head of Insurance, Bain Capital Credit, commented: “We are delighted by the opportunity to provide long-term support to LV=’s Board of directors and management team on this transaction, which delivers certainty and value to LV=’s members. We are investing in a unique company with an impressive management team and employee base, that is already well positioned in the market, with a clearly established product set, strong IFA relationships and a reputation for customer excellence. We have been impressed by LV=’s initiatives to further improve its market position, the benefits of which are already emerging. Our principles and values are in direct alignment with those of LV= and we firmly believe in a shared vision for the future of the business. We look forward to working collaboratively to achieve these shared goals, which include delivering profitable growth, while preserving LV=’s strong financial position, independence and rich heritage dating back to 1843.”
Transaction details
As a result of this transaction all members are expected to benefit from a cash payment to compensate for loss of mutual membership upon full completion of the transaction.
Customers will also benefit from the increased investment that Bain Capital will provide. This will strengthen LV=’s digital capability, enhance customer experience and broaden the products and services currently offered.
For With-profits members, the transaction delivers an excellent financial outcome and will give them greater security:
• Removing business risk for With-profits members by releasing capital required to finance future investment in new business activities;
• Increased pay-outs at policy exit – with the transaction providing up to a 40% uplift to the total capital available for distribution to With-profits members. This uplift will be subject to market performance and regulatory approval; and
• Fixing a schedule of administration and investment management charges.
The partnership with Bain Capital will provide LV= with the external investment needed to grow its leading brand and strong product set for the continued benefit of customers and IFAs. As a life and pensions company, LV= is a long-term investment for Bain Capital. It has identified a significant opportunity to leverage LV=’s strong brand to expand its presence in its existing markets. Innovating and refreshing the customer experience and continuing to strengthen LV=’s value proposition for financial advisors will be a core part of the future approach.
As a leading global private investment firm, Bain Capital is a compelling partner for LV= and will be able to support the business with its market expertise, investment capabilities, global perspective and scale. In addition, the Bain Capital Insurance team has a strong track record successfully growing and supporting similar businesses and is one of the most experienced demutualisation investors in the industry globally.
The transaction will be carried out in two stages with Bain Capital initially acquiring LV=’s subsidiary LVLC together with the administration and new business infrastructure.
All eligible members will be invited to vote on the transaction at a Special General Meeting which is expected to be scheduled for the first half of 2021.
Subject to progressing as currently planned, the transaction is expected to complete by the end of 2021 with a transfer of the in-force non-profit business to LVLC (which will then be owned by Bain Capital) and a transfer of the With-profits business to a ring-fenced sub-fund of LVLC which will be run-off for the benefit of With-profits members. The transfer will be effected by way of a Part VII transfer under the Financial Services Markets Act 2000.
As part of the Part VII transfer LV=’s existing subordinated debt then in issue will transfer with the business in accordance with its terms.
Background to the transaction
The transaction marks the outcome of a comprehensive and rigorous Board-led strategic review which attracted significant interest from leading strategic partners and financial investors from the UK and overseas.
Following the sale of the general insurance business at the end of 2019, it was clear to the Board that as a newly standalone life and pensions business – in an increasingly competitive market dominated by global, well-funded, shareholder owned insurers – LV= would require significant long-term investment to be sustainable.
The Board was faced with the challenge of identifying the most effective way to address the inherent tension between balancing the requirement to invest in the savings & retirement and protection businesses for the long-term while providing enhanced returns to With-profits policyholders.
A wide range of options and proposals were carefully considered by the Board supported by independent financial and legal advice and in consultation with the independent With-profits Committee to enable it to make an informed decision about which option to pursue. About LV=
LV= is a leading financial mutual and serves 1.3 million members (of which c340,000 are With-profits members) with a range of financial products. When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades, we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products. We offer our services direct to consumers, as well as through IFAs.
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF. Phone: 01202 292333.
About Bain Capital Credit
Bain Capital Credit is a leading global credit specialist with approximately $42 billion in assets under management. Bain Capital Credit invests up and down the capital structure and across the spectrum of credit strategies. Our team of more than 200 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity, venture capital and real estate, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus. For more information, visit www.baincapitalcredit.com.
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AnaCap Financial Partners (“AnaCap”), a leading financial services specialist mid-market private equity investor, today announces it has signed a deal for a third acquisition in the UK wealth management platform space with the purchase of Novia Financial (“Novia”).
Novia is the UK’s third largest independent investment and wrap platform by asset under management (“AuM”), having been established in 2008. It records an AuM figure of £8.15 billion and serves a client base of ~67,000 through more than 1,000 IFA firms. Novia operates one of the best technology offerings in the industry, spearheaded by its modern, adaptable and proprietary front-end.
Novia’s acquisition marks the third investment from AnaCap in the UK wealth management platform space and this news comes after AnaCap successfully signed Amber Financial Investments in July 2020 and Wealthtime in December 2019.
Across the three investments, AnaCap have now acquired almost £11 billion AuM and will continue to deploy its expertise in tech-enabled businesses and operational engagement to bolster the businesses organic expansion as well as continuing to identify attractive bolt-on acquisition opportunities.
AnaCap have signed 5 private equity deals in 2020 alone with a combined enterprise value greater than €500 million.
Nassim Cherchali, Partner for M&A at AnaCap, commented: “We view this exciting acquisition of Novia as a truly fundamental deal in our strategy across the UK wealth management platform space. The investment means we have vastly increased our fund management and technological capabilities. We look forward to this next chapter, working with Novia’s impressive technology platform to increase its growth via planned investments into distribution and the building of in-house asset management capabilities.”
Bill Vasilieff, Chief Executive Officer at Novia, commented: “Novia was keen to partner with a company that had a strong track record in growing fintech businesses with innovative operational strategies. We believe that AnaCap represents the perfect choice to help us develop and, pending completion, we look forward to an exciting new chapter for the company in 2021 and beyond.”
The investment will be made from AnaCap Financial Partners III, L.P and its completion is subject to regulatory approval. Financial details and terms of the transaction were not disclosed.
