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Early Stage Fund IX and Growth Fund II: Our commitment to European founders

Balderton

The Balderton Leadership Team

I am proud to share our latest and largest fundraise. Today, we are committing $1.3bn to Europe’s most ambitious founders through Balderton’s Early Stage Fund IX and Growth Fund II. 

Reflecting on Europe’s tech journey

When I joined Balderton in 2008, the European tech ecosystem was still quite nascent, and there had not been many successes at scale. I’d spent the previous 18 years building Business Objects – going from $0 to $1.5bn in revenue, before selling to SAP in what was, back then, the third largest software acquisition of all time. I was eager for a new challenge and to re-invest my time and energy in the European tech ecosystem.

At the time, Balderton had just raised a fund of $480M and we were ready to go. The challenge, much to my surprise, was that we struggled to find companies that we wanted to invest in. In fact, it took us five years to deploy that fund. Back then, fewer people were starting businesses. Fewer still dared to think big and dream beyond the borders of their home country. And many of those that did have the vision and ambition to build global giants opted to do so from the US, where access to capital and the right support was easier.

Today, the landscape is very different. Our ecosystem is thriving, with world-class talent and an established community of entrepreneurs, executives, advisors and directors who have significant startup and scale up experience. More people than ever are starting businesses – and those that do have global ambitions. They are determined to build companies like Spotify or Revolut instead of smaller regional leaders.

This story is reflected in the European VC investment numbers too: In 2008, venture investments in European startups were less than $8bn. In 2023, more than $50bn went into backing Europe’s tech entrepreneurs. And the returns speak for themselves, with European VC funds outperforming North American funds over both a 10 and 15 year period.

As we announce these new funds, I am filled with more optimism and confidence in Europe’s tech scene than ever before. A sentiment that is matched by our investors – an increasingly global mix of LPs who have strong confidence in Europe’s leading position on the global stage. They share our belief that the best way to change the world is to build a business, and have chosen, once again, to trust us in delivering on this vision.

Investing early in Europe’s best founders

The truth is, VCs don’t change the world. Founders do. And they work tirelessly, day in and day out, relentless in their determination to build something significant and to have a real impact on the world.

At Balderton, our mission is to be the partner of choice for Europe’s best entrepreneurs – identifying them early and helping them build global giants. We have been fortunate to find many of these pioneers at the very beginning of their journey – and to continue supporting them as they mature into global leaders in their fields.

Indeed, one thing that we pride ourselves on is the ability to build strong conviction early in the development of a new company. We don’t jump on trends or follow others just for the sake of it, we invest with a high degree of conviction. We build this through our experience working together as a partnership, our rigorous IC process, our experiences with portfolio companies and through our data and thesis driven approach. And we can continue to support our portfolio companies throughout their entire journey with our growth fund.

This includes trailblazers like Alex Kendall, who we first met in his Cambridge University dorm room, and whose outsized ambition and contrarian approach have led Wayve (Series A, 2019) to become the global leader in autonomous driving that it is today. Or Nik Storonsky, who we met when Revolut (Seed, 2015) was just a bold idea on a pitch deck. We’ve been at the team’s side at every step of the way to becoming the multi-billion dollar success story it is now, and we remain today the single largest institutional investor in the company. Or Simon Beckerman, whose unparalleled creative flair and all-consuming passion blew us away when he came to us for depop’s seed funding in 2012 – a company that has since completely transformed consumer fashion. The list goes on and on…

Thank you all for trusting us, and for the incredible ride so far.

A new era of innovation, supercharged by AI

As we close these new funds, we look ahead. Developments in artificial intelligence are propelling us forward into a new era of innovation and transformation, and Europe – with its world class institutions and engineers – has proven to be a clear leader in this next chapter.

We have already invested in many of the European leaders driving the new AI wave – like Writer, Wayve and Photoroom, among others. In Early Stage Fund VIII, AI-first companies made up a substantial portion of our investments, and the remaining companies are almost all investing in AI at some level as they continue to innovate and stay ahead of the competition. The pace of change in AI is unlike anything we’ve seen before, and while it’s impossible to predict exactly what the future will look like, it is clear that AI will change our lives in significant ways.

From fintech to health to climate – and equipped with the most powerful new technology we have seen in decades – the next generation of trailblazing entrepreneurs are already pushing innovation beyond its limits. They are building world-changing companies with more passion, drive and ambition than ever before.

With $1.3bn in fresh funds, 25 years of experience, and the same excitement and dedication as always, we can’t wait to see what this next chapter holds.

Here’s to the next generation of European founders, and to a remarkable journey ahead.

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CDPQ assigns $600 million to Fiera Capital as part of its ambition to allocate $8 billion to Québec fund managers

CDP Logo
Québec, Funds and External Management
Montréal, 

 

  • Investment is aligned with commitment to support Québec’s financial expertise and the growth of its asset managers
  • CDPQ intends to double the amount invested with Québec fund managers by 2028

CDPQ, a global investment group, today announced that it has invested $600 million with Fiera Capital, a leading Québec asset management firm, as part of its ambition to increase the funds entrusted to Québec asset managers to $8 billion by 2028.

This investment is part of CDPQ’s commitment to support Québec’s financial expertise and to stimulate growth in the local asset management industry. Within four years, CDPQ intends on more than doubling the amounts it entrusts to Québec fund managers. This commitment is complementary to CDPQ’s global objective of reaching $100 billion in investments in Québec by 2026.

The $600 million invested with Fiera Capital will also support the firm’s international expansion and will be allocated to its Active and Strategic Fixed Income and Fiera Atlas Global Companies strategies. In addition,  CDPQ has recently made investments in the Québec Emerging Manager Program (QEMP), and the Investi and Inovia Capital funds. It also entrusted sums to Québec portfolio firms including Bastion Asset Management, Montrusco Bolton Investments and Van Berkom Global Asset Management.

“Contributing to Québec’s economic development is at the heart of CDPQ’s mission. By entrusting $600 million to Fiera Capital, a well-established and successful manager, we are benefiting from local financial expertise and supporting the growth of Québec’s asset management industry, while also contributing to the diversification and performance of our portfolio,” said Vincent Delisle, Executive Vice-President and Head of Liquid Markets at CDPQ.

“CDPQ’s renewed trust in Fiera Capital, a pillar of Québec finance, underscores our role as an investment leader. Fiera Capital stands out for its ability to offer optimized portfolio solutions, combining innovation and precision in risk and return management. Our commitment to excellence allows us to meet the diverse needs of our clients,” said Maxime Ménard, President and CEO of Fiera Capital Canada and Global Private Wealth.

ABOUT CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2023, CDPQ’s net assets totalled CAD 434 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

ABOUT FIERA

Fiera Capital is a leading independent asset management firm with a growing global presence. Fiera Capital delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients across North America, Europe and key markets in Asia. Fiera Capital’s depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of investment management science to create sustainable wealth for clients. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange.

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Marktlink Capital closes second Venture Capital Fund-of-Funds at €80 million

Marktlink Capital

Amsterdam 15 July 2024 – Marktlink Capital has successfully closed the subscription for its second venture capital fund-of-funds in six months, securing €80 million in capital commitments from approximately 150 private investors. This second fund follows the success of the first fund launched in 2022, which was fully subscribed within six months. A significant portion of the private investors in the new fund also invested in the first fund, attracted by the access to top venture capital funds in Europe and North America.

Unicorns and trends
The strategy, size, and diversification of the funds in the second venture capital fund-of-funds are largely similar to those in 2022. Based on extensive research, the Marktlink Capital team selects funds that perform exceptionally well. “There are thousands of VC funds, but only a few consistently perform well”, says Bouke Marsman, partner at Marktlink Capital. “In venture capital, good funds continue to perform well year after year. 85% of Unicorns (companies valued over a billion) are owned by just 5% of the funds.”

Marsman continues, “Only 0.5% of companies grow into Unicorns, but ten companies in our portfolio have achieved that status. This is relatively high, especially considering we’ve only been operating for a year and a half. The results so far are in line with our expectations.”

Marktlink Capital has taken broader technological trends into account when composing its portfolio, including Artificial Intelligence (AI). Marsman explains, “With an investment in Saga Ventures, a fund specialising in AI led by Max Altman, and in funds backing the European AI champion Mistral, we aim to reflect this trend in our portfolio.”

About Marktlink Capital
Marktlink Capital, born from the merger of Marktlink Investment Partners and Welt Ventures, is an investment company providing entrepreneurs and private investors with access to the best private equity and venture capital funds in Europe and North America. The team consists of approximately 35 FTEs with specialist knowledge and experience in private equity and venture capital. To date, more than €1.5 billion in committed capital has been secured, almost entirely from Dutch entrepreneurs. The initiator of Marktlink Capital is Marktlink, which has been advising entrepreneurs on the sale or purchase of companies in the upper mid-market segment since 1996. With more than 300 employees and 150 deals per year, Marktlink understands the critical role private equity and venture capital play in the development and growth of businesses.

END of RELEASE

 

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Ardian raises $3.2 billion for sixth-generation Co-Investment platform

Ardian

The fundraise represents a 23% increase on the previous fund generation.
• Ardian Co-Investment Fund VI attracted commitments from 188 investors across the North America, South America, Europe, the Middle East and Asia.

Ardian, a world-leading private investment house, today announces it has raised $3.2 billion for the sixth generation of its global Co-Investment platform, Ardian Co-Investment Fund VI, including Fund commitments and mandates from Ardian Customized Solutions.

This represents a 23% increase on funds raised by Ardian’s fifth generation Co-Investment Fund, Ardian Co-Investment Fund V, in 2019.

The new Fund attracted 188 investors globally, including from Europe, the Americas, the Middle East, and Asia. Investors in the Fund comprise pensions funds, HNWIs, insurance companies and sovereign wealth funds, with Ardian’s Co-Investment strategy continuing to see strong growth amongst HNWIs in this latest generation.

Fund VI builds on the success of Ardian’s established Co-Investment strategy, offering access to minority investments in companies alongside top-tier private equity sponsors. These GPs rely on Ardian’s scale, expertise, local presence, and the team’s dedication to partnering with them, as demonstrated by GPs offering Ardian to co-underwrite most transactions. Fund VI investments are diversified across strategies, industries, company size, GPs, and geographies – including North America, Europe, and Asia. The team will continue to leverage Ardian’s market-leading Secondaries and Primaries platform, one of the largest in the world with deep roots in North America, and access to a global network of 600+ GPs, to drive its unique approach to deal sourcing.

The Fund is already around 40% invested through 18 transactions. These include investments in Potter Global Technologies, a leading manufacturer of fire and life safety equipment in the US, alongside KKR, as well as Schwind, a leading provider of eye laser systems, alongside Adagia Partners.

“This successful close for our sixth-generation platform is testament to both Ardian’s strong track record in delivering returns from co-investment and the attractiveness of the asset class for delivering stable returns, particularly against a more challenging macroeconomic backdrop. Investors are drawn to the diversification and cost advantages of our strategy, offering exposure to a well-balanced portfolio alongside some of the best GPs in the world. As the co-investment market continues to grow, it is not surprising that we have seen strong interest in this latest Fund from both institutional investors and HNWIs looking to capitalize on the diversification that co-investment provides.” Alexandre Motte, Co-Head of Co-Investment and Senior Managing Director, Ardian

“As the private markets mature and deal sizes grow, GPs increasingly turn to professional co-investors to provide equity in their deals, no matter the geography. That certainly applies to North America where, with the support of Ardian’s leading Secondaries and Primaries platform, our co-investment strategy has a proven track record of identifying top-quartile deals from US and Canadian GPs. This exceptional deal pipeline allows us to select high-quality assets and GPs, generating robust and stable returns for our limited partners. A growing number of compelling deals have come to market since our previous fund generation, and we expect these opportunities to not only increase in Europe but also in North America.” Patrick Kocsi, Co-Head of Co-Investment and Senior Managing Director, Ardian

ABOUT ARDIAN

Ardian is a world-leading private investment house, managing or advising $166bn of assets on behalf of more than 1,600 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. Private Wealth Solutions offers dedicated services and access solutions for private banks, family offices and private institutional investors worldwide. Ardian’s main shareholding group is its employees and we place great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 1,050+ employees, spread across 19 offices in Europe, the Americas, Asia and Middle East are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility.
At Ardian we invest all of ourselves in building companies that last.

ardian.com

MEDIA CONTACTS

ARDIAN

HEADLAND

ardian@headlandconsultancy.com

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New Mountain Capital Closes on $15.4 Billion for New Mountain Partners VII

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New Mountain Capital
  • Growth-oriented firm raises $15.4 billion for private equity fund focused on control and control-oriented investments
  • $14 billion “hard cap” reached from its Limited Partners: Investors include approximately 400 institutions, nearly 100 of which are new investors to New Mountain; fund was oversubscribed
  • $1.4 billion GP commitment from over 130 internal team members
  • New Mountain is dedicated to “building great businesses” within carefully selected acyclical growth sectors, focusing on the middle market
  • Over $85 billion of enterprise value created for all shareholders since firm’s inception, with no PE bankruptcies or missed interest payments
  • Firm’s total assets under management are now nearly $55 billion, with a team of 250 professionals, across four strategies: private equity, strategic equity, credit and net lease

New York, NY – (BUSINESS WIRE) – July 1, 2024 – New Mountain Capital, LLC (“New Mountain”), a leading growth-oriented alternative investment firm headquartered in New York, announced the $15.4 billion closing of its seventh control/control-oriented fund, New Mountain Partners VII, L.P. and its related vehicles (collectively, “Fund VII” or the “Fund”). New Mountain describes itself as “a business that builds businesses,” and has generated over $85 billion of enterprise value gains in its private equity companies since the firm’s inception, without one PE bankruptcy or missed interest payment.

Investor demand for Fund VII substantially exceeded the Fund’s supply, and the Fund closed at its “hard cap” amount of $14.0 billion of Limited Partner commitments, plus approximately $1.4 billion of General Partner commitments.  This was the firm’s largest General Partner commitment to date and exceeded the contractual amount by more than 2x.

New Mountain’s previous flagship fund, Fund VI, was also oversubscribed and closed with approximately $9.6 billion of commitments in 2020. That fund is now fully invested in platform companies, with the remaining capital reserved for follow-on growth investments.

Investors in Fund VII include approximately 400 of the world’s leading pension funds, insurance companies, sovereign wealth funds, asset managers, foundations, endowments, family offices, RIAs, and high net worth individuals, among others. In addition, the General Partner is itself the largest investor in the Fund, representing strong GP/LP alignment. The vast majority of Fund VI investors returned as investors for Fund VII, and the firm also added approximately 100 new investors globally.

“We thank our Limited Partners for their friendship and support,” said Steve Klinsky, Founder and CEO of New Mountain. “Since our founding nearly 25 years ago, New Mountain has sought to consistently ‘build great businesses’ in carefully chosen acyclical growth sectors. We are proud of the firm and team we have built, as we seek to build and improve businesses across market cycles. We strive to continuously improve in the years ahead.”

Consistent Execution of Strategy

Fund VII intends to continue to pursue New Mountain’s long-standing strategy emphasizing non-cyclical growth and business building for companies in carefully chosen “defensive growth” industries. New Mountain proactively develops operational expertise in these targeted, acyclical sectors through deep, fundamental research, resulting in what the firm believes are differentiated sourcing and value creation capabilities. It seeks to combine financial skills with operational and strategic skills at every step of the process, and primarily invests in “middle market” businesses.

Specific areas of focus for the firm, and Fund VII, include life sciences and advanced materials, healthcare technologies, advanced data and analytics, infrastructure services, digital transformation services, software, financial and insurance services, technology enabled business services, “future of work” enterprises, and others.

Fund VII has already acquired two companies ahead of its final close. These investments are Consor Holdings, a leading provider of transportation and waste water engineering, and Grant Thornton Advisors LLC, a leading US accounting, tax and advisory firm.

“New Mountain will continue to execute on our strategy of being a top ‘specialist’ in market niches we proactively select for investment,” said Matt Holt, Managing Director and President, Private Equity. “Our team intends to continue executing, refining and systemizing our approach to identifying and backing market leading platform companies with world class leadership teams in their respective sectors.”

“New Mountain has continued to focus on growing our team to support business building and value creation, which are core tenets of our strategy,” said Adam Weinstein, Managing Director, Chief Operating Officer and CFO. “We have also continued to scale and strengthen our internal systems and processes and build what we believe is a best in class non-investment team including compliance, finance and operations.”

New Mountain strives to be consistently successful through all market cycles and has had a strong period of results even during the challenging macro environment of recent years. Key recent events include:

  • Since January 2021, New Mountain has exited roughly 20 companies. It has deployed nearly $10 billion in approximately 30 new platform and add-on acquisitions. The firm’s investment pace has remained steady and predictable.  Realizations have outpaced deployment and have been consistent over the same period.
  • Based on the firm’s last “social dashboard,” as of December 31, 2023, New Mountain had added or created over 72,000 jobs at its private equity companies net of any job losses, with a median income of ~76% above the national average individual median income. In addition, these companies invested $8.3 billion in R&D, software development, and capital expenditures, and generated over $85 billion of enterprise value gains for all shareholders. In addition, work force members at NMC companies (not counting the C-suite and boards) received over $1.3 billion of equity gains, on companies sold since 2018.

Continued Investment in NMC Team and Client Service

New Mountain’s team has grown to over 250 investment professionals and staff with 20 private equity transaction leaders, and approximately 40 Operating Partners and Senior Advisors/Project Partners on its masthead, plus approximately 55 operating executives (Executive Advisory Council members) that are in addition to the team count.

New Mountain has also significantly expanded its local coverage supporting investors and consultants in different regions around the world.  The firm has expanded its London office and recently opened offices in Tokyo and Los Angeles. New Mountain has also sought to continuously build its own investment team, operating partner team, internal compliance, accounting, and operational team in a similar way.

“We thank our investors for their outstanding support of New Mountain, even in the face of a severely capital constrained period for the private equity industry,” said David Coquillette, Managing Director and Head of Business Development. “We look forward to working closely with our limited partners in the years ahead.”

Simpson Thacher & Bartlett serves as legal advisor for the Fund.

About New Mountain Capital

New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than excessive risk, as it pursues long-term capital appreciation. The firm currently manages private equity, strategic equity, credit, and net lease real estate funds with nearly $55 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information, visit: www.newmountaincapital.com.

Under no circumstances does the information contained herein constitute an offer to sell or a solicitation of an offer to buy any security or interest in an investment vehicle managed by New Mountain Capital. Any such offer or solicitation can only be made through a definitive private placement memorandum describing the terms and risks of an investment to sophisticated persons who meet certain qualifications under the federal securities laws and are capable of evaluating the merits and risks of the investment. Nothing presented herein is intended to constitute investment advice, and no investment decision should be made based on any information provided herein. It should not be assumed that an investment will be profitable or that the performance of any particular investment will equal its past performance.  No guarantee of investment performance is being provided and no inference to the contrary should be made.  There is a risk of loss from an investment in securities, including the potential loss of principal. Past performance is not indicative of future results.

Media Contact:

Prosek Partners | Josh Clarkson

pro-nmc@prosek.com

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Aquiline Raises Over $3.4 Billion of Fund Capital

Aquiline

NEW YORK and LONDON, June 6, 2024 /PRNewswire/ — Aquiline Capital Partners LP (“Aquiline” or “the Firm”), a private investment firm dedicated to financial services and related technologies, today announces that it has raised more than $3.4 billion of fund capital, following the final close of its fifth private equity fund, Aquiline Financial Services Fund V L.P. (“AFS V”), and the close of its continuation fund, Aquiline Financial Services Continuation Fund L.P. (“Continuation Fund”).

With over $2.3 billion in capital commitments, AFS V is Aquiline’s largest fund to date, significantly exceeding the size of its predecessor. The Firm received strong support from its existing investor base of financial institutions, sovereign wealth funds, public pension funds, funds of funds, and family offices. Aquiline also welcomed significant first-time commitments from investors across the U.S., Europe, the Middle East, and Asia, demonstrating confidence in its investment activities and growth trajectory.

Concurrently, Aquiline has closed on approximately $1.1 billion of capital commitments in its Continuation Fund, including a meaningful lead investment from HarbourVest Partners (“HarbourVest”). The continuation fund was established to acquire select portfolio companies in Aquiline Financial Services Fund II L.P. (“AFS II”) and Aquiline Financial Services Fund III L.P. (“AFS III”). The transaction offered investors the opportunity to capture future value creation while providing existing limited partners with an option for accelerated liquidity. A meaningful portion of the fund will be available as follow-on capital to support future growth initiatives and potential strategic acquisitions within the portfolio.

HarbourVest served as the sole lead investor in the Continuation Fund, with participation from several other new investors, including StepStone, funds managed by Ares Management, and Commonfund’s CF Private Equity business, as well as re-investment from existing limited partners. All AFS II and AFS III limited partners were provided with the option to roll their value on status quo terms, reinvest their value into the Continuation Fund, or receive full liquidity.

The combined $3.4 billion of fund capital was welcomed by Aquiline’s Managing Partners, Vincenzo La Ruffa and Igno van Waesberghe.

“Aquiline’s blend of deep financial services industry knowledge and trusted relationships has underpinned our successful fundraising activities in a challenging market. We are pleased to welcome a mix of new strategic investors from our industries, as well as institutional investors from Asia and the Middle East, to AFS V and leading institutional investors to our Continuation Fund,” said Igno van Waesberghe. “We already have strong momentum in AFS V, with capital deployed across multiple investments, and look forward to continuing the value creation journey.”

Since its formation in 2005, Aquiline has been committed to its strategy of working with companies to solve the financial industry’s biggest challenges. With a global presence and rigorous industry analysis, Aquiline can identify industry trends, both big and small, that create meaningful change in the delivery of financial services. The Firm has built deep, trusted relationships across insurance, asset and wealth management, banking and capital markets, healthcare, and payments, enabling Aquiline to partner with companies to build value for its investors alongside company management.

“We have purposefully created a firm that provides capital and expertise to outstanding companies, whether in the form of private equity capital, venture and growth funding, or credit,” said Vincenzo La Ruffa. “Along with our geographic and industry reach, this makes us a powerful partner for industry leaders, entrepreneurs, and innovators alike.”

Notes to Editors

About Aquiline Capital Partners LP

Aquiline Capital Partners LP is a private investment firm based in New York, London, Philadelphia, and Greenwich, Connecticut, that is dedicated to financial services and related technologies. The Firm has approximately $10.4 billion in assets under management as of March 31, 2024.

For more information about Aquiline, its investment professionals, and its portfolio companies, visit www.aquiline.com.

About HarbourVest Partners, LLC

HarbourVest is an independent, global private markets firm with over 40 years of experience and more than $125 billion of assets under management as of December 31, 2023. HarbourVest’s interwoven platform provides clients access to global primary funds, secondary transactions, direct co-investments, real assets and infrastructure, and private credit. HarbourVest’s strengths extend across strategies, enabled by its team of more than 1,150 employees, including more than 230 investment professionals across Asia, Europe, and the Americas. Across its private markets platform, the HarbourVest team has committed more than $59 billion to newly formed funds, completed over $53 billion in secondary purchases, and invested over $39 billion in direct operating companies. HarbourVest partners strategically and plans its offerings innovatively to provide its clients with access, insight, and global opportunities.

For further information please visit www.harbourvest.com.

Media Contacts

Apella Advisors – email: aquiline@apellaadvisors.com.

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KKR Exceeds Acceptance Threshold For Voluntary Public Takeover Offer For ENCAVIS AG

KKR
  • Minimum acceptance threshold of 54.285%1 has been exceeded within the initial acceptance period
  • Acceptance rate amounts to 68.55 percent of all outstanding ENCAVIS AG shares
  • Additional acceptance period to run from 5 June 2024 until 18 June 2024
  • Post-settlement, KKR and the Management Board of Encavis intend to delist Encavis from the stock exchange as soon as legally and practically possible after closing

4 June 2024 – Elbe BidCo AG (the “Bidder”), a holding company controlled by investment funds, vehicles and accounts advised and managed by Kohlberg Kravis Roberts & Co. L.P. and its affiliates (collectively, “KKR”), today announced the result of the initial acceptance period of the voluntary public takeover offer (the “Takeover Offer”) for the shares (ISIN: DE0006095003 / DE0006095003) of ENCAVIS AG (“Encavis”).

At the expiry of the period at 24:00 hrs (local time Frankfurt am Main) on 29 May 2024, the takeover offer had been accepted for 59,899,783 Encavis shares. This corresponds to approximately 68.55 percent of all outstanding Encavis shares, including the ca. 18% of Encavis shares that ABACON and other shareholders will sell and the ca. 13% of Encavis shares that ABACON and other shareholders will roll-over to Bidder under binding agreements. As such, the minimum acceptance threshold of 54.285% has been exceeded.

Post-settlement, Bidder intends to delist Encavis from the stock exchange as soon as legally and practically possible after closing to benefit from financial flexibility and a long-term commitment of KKR and Viessmann under private ownership.

“We are thrilled to have reached this milestone and believe that the long-term vision and financial flexibility of private ownership will unlock significant opportunities for growth and innovation,” said Vincent Policard, Partner and Co-Head of European Infrastructure at KKR. “The intended delisting is the next logical step in this direction, providing Encavis with the flexibility to focus on their core objectives, and creating an even more dynamic framework for the company to thrive in the rapidly evolving energy sector.”

Encavis shareholders continue to have the opportunity to accept the offer within the additional acceptance period, which will start on 5 June 2024 and expire on 18 June 2024 at 24:00 hours (local time Frankfurt am Main).

The voluntary public takeover offer remains subject to the completion of the regulatory conditions outlined in sections 12.1.1, 12.1.3 (ii) to (vii) and 12.1.4 of the offer document. Closing of the transaction is expected in Q4 2024.

On 14 March 2024, Bidder had launched a voluntary public takeover offer for all outstanding free float shares of Encavis. Viessmann invests as a shareholder in a KKR-led consortium.

The offer document and additional information are available at www.elbe-offer.com.

1 This accounts for potential dilution of existing shareholders from conversion of the hybrid convertible bonds; equivalent to 50% plus one share in case of a conversion of all of the hybrid convertible bonds.

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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.

 

KKR established its Global Infrastructure business in 2008 and has since grown to one of the largest infrastructure investors globally with a team of more than 115 dedicated investment professionals. The firm currently oversees approximately USD 59 billion in infrastructure assets globally as of 31 December 2023, and has made over 80 infrastructure investments across a range of sub-sectors and geographies. KKR’s infrastructure platform is devised specifically for long-term, capital intensive structural investments.

 

For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

 

About Viessmann

Founded in 1917, the independent family company Viessmann is today a global, broadly diversified Group. All activities are based on the company’s purpose “We co-create living spaces for generations to come”. This is the passion and responsibility that the large worldwide Viessmann family brings to life every day. Following this purpose, Viessmann forms an ecosystem of entrepreneurs and co-creators with a clear focus on CO2 avoidance, CO2 reduction and CO2 capturing.

 

About ABACON

ABACON CAPITAL, a family-owned investment firm, champions the sustainable energy transition, pioneering mobility solutions, and groundbreaking deep tech. Our mission centers on uplifting communities, fostering purposeful endeavors, and ensuring profitability, all while advancing societal and environmental well-being.

 

Founded by Albert Büll, a visionary entrepreneur and investor with a legacy in nurturing sustainable enterprises – such as B&L Group in real estate development, Encavis AG in renewable energy production, and noventic in smart metering and energy management – ABACON is built on a foundation of innovation and responsibility.

 

About Encavis

The Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from Renewable Energies listed on the MDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), Encavis acquires and operates (onshore) wind farms and solar parks in twelve European countries. The plants for sustainable energy production generate stable yields through guaranteed feed-in tariffs (FIT) or long-term power purchase agreements (PPA). The Encavis Group’s total generation capacity currently adds up to more than 3.5 gigawatts (GW), of which around 2.2 GW belong to the Encavis AG, which corresponds to a total saving of around 0.8 million tonnes of CO2 per year stand-alone for the Encavis AG. In addition, the Group currently has around 1.2 GW of capacity under construction, of which around 830 MW are own assets.

 

Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors. Another Group member company is Stern Energy S.p.A., based in Parma, Italy, a specialised provider of technical services for the installation, operation, maintenance, revamping and repowering of photovoltaic systems across Europe.

 

Encavis is a signatory of the UN Global Compact as well as of the UN PRI network. Encavis AG’s environmental, social and governance performance has been awarded by two of the world’s leading ESG rating agencies. MSCI ESG Ratings awarded the corporate ESG performance with their “AA” level and ISS ESG with their “Prime” label (A-).

 

Additional information can be found on www.encavis.com

 

 

KKR media contact

 

Thea Bichmann

Mobile: +49 (0) 172 13 99 761

Email: kkr_germany@fgsglobal.com

 Emily Lagemann

Mobile: +49 (0) 171 86 79 950

Email: kkr_germany@fgsglobal.com

 

 

Viessmann media contact

 

Byung-Hun Park

Vice President Corporate Communication

Mobile: + 49 (0) 151 64911317

Email: huni@viessmann.com

  

 

Disclaimer and forward-looking statements

This press release is neither an offer to purchase nor a solicitation of an offer to sell Encavis shares. The final terms of the takeover offer, as well as other provisions relating to the takeover offer are set out solely in the offer document authorized for publication by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). Investors and holders of Encavis shares are strongly advised to read the offer document and all other documents relating to the takeover offer, as they contain important information. The offer document for the takeover offer (in German and a non-binding English translation) with the detailed terms and conditions and other information on the takeover offer is published amongst other information on the internet at www.elbe-offer.com.

The takeover offer will be implemented exclusively on the basis of the applicable provisions of German law, in particular the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz – WpÜG), and certain securities law provisions of the United States of America relating to cross-border takeover offers. The takeover offer will not be conducted in accordance with the legal requirements of jurisdictions other than the Federal Republic of Germany or the United States of America (as applicable). Accordingly, no notices, filings, approvals or authorizations for the takeover offer have been filed, caused to be filed or granted outside the Federal Republic of Germany or the United States of America (as applicable). Investors and holders of Encavis shares cannot rely on being protected by the investor protection laws of any jurisdiction other than the Federal Republic of Germany or the United States of America (as applicable). Subject to the exceptions described in the offer document and, where applicable, any exemptions to be granted by the respective regulatory authorities, no takeover offer will be made, directly or indirectly, in those jurisdictions in which this would constitute a violation of applicable law. This press release may not be released or otherwise distributed in whole or in part, in any jurisdiction in which the takeover offer would be prohibited by applicable law.

The Bidder reserves the right, to the extent permitted by law, to directly or indirectly acquire additional Encavis shares outside the takeover offer on or off the stock exchange, provided that such acquisitions or arrangements to acquire are not made in the United States, will comply with the applicable German statutory provisions, in particular the WpÜG, and the offer price is increased in accordance with the WpÜG, to match any consideration paid outside of the takeover offer if higher than the offer price. If such acquisitions take place, information on such acquisitions, including the number of Encavis shares acquired or to be acquired and the consideration paid or agreed, will be published without undue delay if and to the extent required under the laws of the Federal Republic of Germany, the United States or any other relevant jurisdiction. The takeover offer relates to shares in a German company admitted to trading on the Frankfurt Stock Exchange and Hamburg Stock Exchange and is subject to the disclosure requirements, rules and practices applicable to companies listed in the Federal Republic of Germany, which differ from those of the United States and other jurisdictions in certain material respects. The financial information relating to the Bidder and Encavis included elsewhere, including in the offer document, are prepared in accordance with provisions applicable in the Federal Republic of Germany and are not prepared in accordance with generally accepted accounting principles in the United States; therefore, it may not be comparable to financial information relating to United States companies or companies from other jurisdictions outside the Federal Republic of Germany. The takeover offer will be made in the United States pursuant to Section 14(e) of, and Regulation 14E under, the Exchange Act, and on the basis of the so-called Tier II exemption from certain requirements of the Exchange Act, which exemption allows a bidder to comply with certain substantive and procedural rules of the Exchange Act for takeover bids by complying with the law or practice of the domestic legal system and exempts the bidder from complying with certain other rules of the Exchange Act, and otherwise in accordance with the requirements of the laws of the Federal Republic of Germany. Shareholders from the United States should note that Encavis is not listed on a United States securities exchange, is not subject to the periodic requirements of the Exchange Act and is not required to, and does not, file any reports with the United States Securities and Exchange Commission.

Any contract entered into with the Bidder as a result of the acceptance of the takeover offer will be governed exclusively by and construed in accordance with the laws of the Federal Republic of Germany. It may be difficult for shareholders from the United States (or from elsewhere outside of Germany) to enforce certain rights and claims arising in connection with the takeover offer under United States federal securities laws (or other laws they are acquainted with) since the Bidder and Encavis are located outside the United States (or the jurisdiction where the shareholder resides), and their respective officers and directors reside outside the United States (or the jurisdiction where the shareholder resides). It may not be possible to sue a non-United States company or its officers or directors in a non-United States court for violations of United States securities laws. It also may not be possible to compel a non-United States company or its subsidiaries to submit themselves to a United States court’s judgment.

To the extent that this press release contains forward-looking statements, they are not statements of fact and are identified by the words “intend”, “will” and similar expressions. These statements express the intentions, beliefs or current expectations and assumptions of the Bidder and the persons acting jointly with it. Such forward- looking statements are based on current plans, estimates and projections made by the Bidder and the persons acting jointly with it to the best of their knowledge, but are not guarantees of future accuracy (this applies in particular to circumstances beyond the control of the Bidder or the persons acting jointly with it). Forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and are usually beyond the Bidder’s control or the control of the persons acting jointly with it. It should be taken into account that actual results or consequences in the future may differ materially from those indicated or contained in the forward-looking statements. It cannot be ruled out that the Bidder and the persons acting jointly with it will in future change their intentions and estimates stated in documents or notifications or in the offer document.

 

 

 

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Ardian raises €530m for third-generation Growth platform

Ardian

his dynamic fundraising illustrates the renewed confidence of its investor base for the team’s entrepreneur-centric approach and deep sector expertise

This dynamic fundraising illustrates the renewed confidence of its investor base for the team’s entrepreneur-centric approach and deep sector expertise Ardian, a world-leading private investment house, today announced that it has raised €530m for its third-generation Growth platform, Ardian Growth Fund III. In a more challenging fundraising environment, the fund closed above the €500 million target size and more than doubled in size compared to the previous generation, which closed at €230 million in 2018.

The successful fundraise attracted investments from an increasingly diversified and global LP base, in addition to achieving a strong re-up rate from existing investors. Ardian Growth Fund III received commitments from investors across 12 countries, including from major banks and insurance companies, entrepreneurs, pension funds and government agencies. Near 120 LPs in the fund are entrepreneurs, showcasing the trust they have in the team and its ability to steer high-quality growth stories.

Building on the progress already made through previous fund generations, Ardian’s Growth team will continue to target profitable, fast-growing companies across continental Europe thanks to its unique sourcing capabilities. The fund strategy remains aligned with the team’s sector-focused approach, targeting digital at large (software, web and tech-enabled businesses,…), expert B2B services and health & wellness companies, particularly those benefiting from digital transformation and disrupting the traditional value chain in their sector.

“Our approach has always been about more than just funding; we are focused on partnering with entrepreneurs to accelerate their business growth, achieve their ambitions and expand their footprint internationally. The current market presents one of the most exciting opportunities of the last 20 years for growth investment, particularly given the scale and pace of digitalization, and our team of experts bring best-in-class expertise and deep sector knowledge to support management teams with their growth. We have already made three investments from the fund, and our unique sourcing capabilities will see us invest further to help transform more growing companies with the next phase of their journeys.” Alexis Saada, Head of Growth & Senior Managing Director, Ardian

The fund is already close to 25% deployed following three transactions in category leaders, including investments in Théradial, a dialysis solutions provider; My Pie, an innovative snacking concept; and Aprium Pharmacie, a pharmacy banner company.

The fund falls under the Article 8 of the European Union Sustainable Finance Disclosure Regulation (SFDR) and integrates sustainability into its strategy to create long-term value shared across our stakeholders.

The Ardian Growth team has more than 20 years’ experience investing in the European growth market and now comprises 4 partners for a total of 14 investment professionals. The team now has €1 billion of assets under management and has supported more than 120 businesses since 1998.

ABOUT ARDIAN

Ardian is a world-leading private investment house, managing or advising $164bn of assets on behalf of more than 1,600 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. Private Wealth Solutions offers dedicated services and access solutions for private banks, family offices and private institutional investors worldwide. Ardian’s main shareholding group is its employees and we place great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 1,050+ employees, spread across 19 offices in Europe, the Americas, Asia and Middle East are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility.
At Ardian we invest all of ourselves in building companies that last.

ardian.com

PRESS CONTACT

ARDIAN

HEADLAND

ardian@headlandconsultancy.com

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Capital Group And KKR Form Exclusive Strategic Partnership To Create Public-Private Investment Solutions

KKR

LOS ANGELES and NEW YORK, May 23, 2024 /PRNewswire/ — Leading global investment firms, Capital Group and KKR, today announced an exclusive, strategic partnership to bring new ways for investors to incorporate alternative investments into their portfolios. Capital Group and KKR intend to make hybrid public-private markets investment solutions available to investors across multiple asset classes, geographies and channels. The first two strategies will be public-private fixed income offerings designed for financial professionals and their clients, which are expected to launch in the U.S. in 2025.

“Capital Group sees a real opportunity to deliver hybrid public-private market solutions for our clients,” noted Capital Group President and CEO Mike Gitlin. “For over 90 years, we have been committed to delivering a strong long-term track record of excess returns for clients, overseeing $2.6 trillion of which $500 billion is in public fixed income. KKR is a leading and respected alternative asset manager with over $500 billion in assets, with a proven track record managing over $200 billion in credit. We believe combining our respective areas of expertise in strategies that are more liquid than standalone private credit can help our clients achieve their goals.”

While alternatives have been available to high-net-worth individuals and accredited investors for some time, mass affluent investors, which represent more than 40% of the wealth market globally, have not historically had access to the asset class.1 This combination of Capital Group and KKR opens the door for more financial professionals and their clients to access alternative investments as part of their portfolios.

Gitlin continued, “We will bring the strategies of a premium alternatives manager to our clients with a compelling fee and greater accessibility. Clients should think of this as ‘the best of both worlds’ – a hybrid investment solution that combines Capital’s active management and long-term investment approach with KKR’s private market expertise. We are entering this market, in strategic partnership with KKR, with long-term plans and aspirations. Listening to our clients’ needs, we are confident that this will be the seed of a new platform, not just a product launch.”

Global assets in alternatives have grown significantly over the last 20 years and it is estimated that individual wealth invested in alternatives is expected to grow 12% annually over the next decade.2

“Capital Group and KKR have highly complementary capabilities and similar cultures and together we are committed to delivering for clients,” said Joe Bae and Scott Nuttall, Co-CEOs of KKR. “We believe individuals should have access to alternative investments and are thrilled to be partnering with Capital Group, which has world-class investment capabilities, strong client relationships and a leading sales and distribution network. We look forward to bringing these solutions to market and expanding our strategic partnership into additional asset classes and channels.”

“We see interest in alternatives only continuing to grow over the next decade as wealth investors gain access to high quality investment solutions,” said Eric Mogelof, Partner and Head of Global Client Solutions at KKR. “We are pleased with the momentum and growth that we’ve seen in our private wealth business and believe these new hybrid solutions will be a strong complement to our existing platform and offer a compelling way to bring the benefits of alternatives to an even wider audience of investors across wealth and retirement who may not have had access to them historically.”

Matt O’Connor, President of Capital Group’s Client Group stated, “The investable universe has expanded. We are committed to creating a meaningful public-private category for the benefit of our clients over the long term. Financial professionals tell us that we can add more value by bringing a fuller set of solutions to their clients’ portfolios and are looking to us to be their partner.”

Gitlin continued, “Some of our clients want us to bring them a full investment solution including alternatives. Capital has been researching the broad alternatives market for the past two years and considered whether to buy, build or partner. Buying would disrupt our culture, building could distract our investment professionals, so partnering with a subject-matter expert to deliver a holistic investment solution for our clients was the best course of action. For many investors, private credit can be out of reach. The lens we used was a simple one – how can we help clients while staying true to our culture and maintaining our focus on what we do best.”

Solution details will be announced later this year.

About Capital Group

Capital Group has been singularly focused on delivering superior investment results for long-term investors using high-conviction portfolios, rigorous research, and individual accountability since 1931.
As of March 30, 2024, Capital Group manages more than $2.6 trillion in equity and fixed income assets for millions of individuals around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

For more information, visit https://www.capitalgroup.com/about-us.html.html.

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 https://kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at https://www.globalatlantic.com/.

Past results are not a guarantee of future results. This content is published by American Funds Distributors, Inc., which will be renamed Capital Client Group, Inc. on or around July 1, 2024, and copyrighted to Capital Group and affiliates, 2024, all rights reserved.

For more information, including our detailed disclosures, visit www.capitalgroup.com/global-disclosures.

1 PWC Asset and wealth management revolution 2023: The new context
2 Bain & Co 2023 Global Private Equity

Media Contacts:
Hannah Coan
hannah.coan@capgroup.com

Kristi Huller
kristi.huller@kkr.com

SOURCE Capital Group Companies

 

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Innovation Industries Raises €500 Million For Investments In Deeptech

Innovation Industries

Fund oversubscribed, with the majority of financing coming from Dutch pension funds

Amsterdam, May 15, 2024 – Dutch venture capital fund Innovation Industries has raised €500 million for its third fund, which focuses on financing deeptech companies in the Benelux and Germany. Earlier this year, Innovation Industries also raised €100 million for another fund, the Strategic Partners Fund, which invests in scale-ups from the existing portfolio. This brings the total raised capital for this year to €600 million.

Deeptech companies develop groundbreaking technologies and bring them to market. These types of companies have the potential to offer innovative solutions to global challenges such as climate change, security, aging populations, food shortages, and energy supply. Due to the complexity and advanced nature of their products, deeptech companies have higher capital requirements and longer development times compared to more conventional enterprises.

Investors in the fund

Investors in the third fund include PME and PMT. These pension funds have also invested in Innovation Industries’ earlier funds. The fund also includes pension funds ABP, bpfBOUW, Pensioenfonds KPN, and TNO Pensioenfonds. Additionally, investors in the fund include ABN AMRO, Athora Netherlands, Rabobank, Oost NL, Brabantse Ontwikkelingsmaatschappij, Invest-NL, InnovationQuarter, European Investment Fund (EIF), KfW Capital, and Wachstumsfonds.

“Investing in deeptech is very attractive from various perspectives. Nevertheless, deeptech companies still face significant challenges in raising capital,” says Nard Sintenie, partner at Innovation Industries. “With our third fund, combined with the Strategic Partners Fund, we are taking an important step in addressing this issue for Dutch deeptech companies.”

Harm de Vries, partner at Innovation Industries, stated, “We are very pleased that in addition to pension funds PME and PMT, other pension funds are now also participating in our fund. We share a long-term vision with these pension funds, combining good financial returns with a contribution to the future resilience of the Dutch deeptech ecosystem. With currently around €900 million in capital under management, we will serve as a magnet for groundbreaking technologies in Europe.”

“Our team currently operates from offices in Amsterdam and Eindhoven. Soon, we will add an office in Munich,” explains Chris Sonnenberg, partner and co-founder of Innovation Industries. “With a solid European presence, we can identify the best technology companies and thereby strengthen the competitive position of the Netherlands,” he adds.


About Innovation Industries

Innovation Industries has been active since 2017 and has investments in more than 30 deeptech companies. An example is Nearfield Instruments, a spin-off of TNO that develops advanced measuring machines for the semiconductor industry. Companies in the portfolio have also been sold, such as Luxexcel, which was acquired by Meta (the company behind Facebook) in 2021. Luxexcel manufactures 3D-printed lenses for digital glasses.

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