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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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Sands Capital’s Pulse Fund III Secures $555M Close

Sands Capital

The Life Sciences Pulse strategy partners with private companies helping transform how diseases are defined, diagnosed, and treated.

Sands Capital is pleased to announce the close of our third life sciences fund, Sands Capital Life Sciences Pulse Fund III (“Pulse III”), raising $555 million. Pulse III was met with high demand from both existing and new limited partners. This close increases total Pulse strategy capital commitments to $1.3 billion, including Sands Capital Life Sciences Pulse Fund (“Pulse I”) and Sands Capital Life Sciences Pulse Fund II (“Pulse II”). The team will continue investing with the same emphasis on private therapeutics, diagnostics, medical devices, and life sciences tools businesses, in support of the strategy’s mission to help transform how diseases are defined, diagnosed, and treated.

“The life sciences sector continues to innovate at a rapid pace, leading to breakthroughs that benefit both patients and society as a whole.”

“The life sciences sector continues to innovate at a rapid pace, leading to breakthroughs that benefit both patients and society as a whole,” said Stephen Zachary, Managing Partner. “We are grateful to both the investors joining us in Pulse III and the talented management teams we’ve partnered with since the strategy’s inception.”

The Pulse investment team comprises senior professionals led by founders, operators, PhDs, and experienced investors with the ability to leverage the resources and capabilities of the entire firm to execute its strategy. The team also draws upon Sands Capital’s more than three decades of deep research and experience investing in innovation in public markets.

Disclosures:

As of October 1, 2021, Sands Capital was redefined to be the combination of Sands Capital Management, LLC and Sands Capital Ventures. Both firms are registered investment advisers with the United States Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940. The two registered investment advisers are combined to be one firm and are doing business as Sands Capital. Sands Capital operates as a distinct business organization, retains discretion over the assets between the two registered investment advisers, and has autonomy over the total investment decision-making process.

This communication is for informational purposes only and does not constitute an offer, invitation, or recommendation to buy, sell, subscribe for, or issue any securities. The material is based on information that we consider correct, and any estimates, opinions, conclusions, or recommendations contained in this communication are reasonably held or made at the time of compilation. However, no warranty is made as to the accuracy or reliability of any estimates, opinions, conclusions, or recommendations. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person.

The activities of the Life Sciences Pulse Team, including investment due diligence and sourcing, may be supported on an ad hoc basis by various members of the broader global research team of Sands Capital Management. Please refer to the biographies of the Life Sciences Pulse Strategy Team members. Members of the Life Sciences Pulse team also provide services with respect to other strategies of Sands Capital.

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FSN Capital Compass Fund holds final close, raising more than its €400 million target to invest in purpose-driven companies in Northern Europe

Fsn Capital

FSN Capital has announced the successful closing of the Compass Fund, with total commitments of over €400 million backing a thematic investment strategy.

The Compass Fund is a small-cap fund which invests within future-oriented themes that seek to address society’s key challenges over the coming decade, including Green Transition and Knowledge Economy.

The new strategy is an integrated part of the FSN platform, developed over 25 years and six flagship mid-cap funds. The latest flagship fund, FSN Capital VI, closed in 2021 at €1.8 billion. The Compass Fund leverages the same advisor team and processes, tailoring the investment approach and value creation model for smaller-sized companies. Portfolio companies benefit from the FSN funds’  Executive Advisor network of experienced industrial leaders, as well as the FSN Execution Framework (FEF) and FSN Capital’s* team of 20 operating professionals, specialized in areas including Digital, ESG, and Finance.

The Compass Fund is considered an Article 8+ fund under the EU Sustainable Finance Disclosure Regulation (SFDR). The fund draws on FSN Capital’s industry-leading ESG platform, including established processes for governance, decarbonization, and ESG measurement and reporting. The Compass Fund also introduces new innovations, such as a proprietary impact assessment framework used in the investment screening process, developed with Bridgespan Social Impact.

The Fund is supported by two dedicated partners at FSN Capital, Erik Nelson and Justin Kent. The Compass Fund is approximately 30% invested and will continue to invest primarily in the Nordics and DACH, typically with equity tickets between €20-60 million. To date, the Fund has made four platform investments:

  • – Solcellespesialisten, Norway’s largest supplier and installer of solar energy systems
  • – Firesafe, the market leader in the Nordics for fire safety services
  • – Epista Life Science, an IT Services and consulting firm supporting the Life Sciences industry with digitalization and compliance
  • – Seriline, a Swedish provider of Identity and Access Management (IAM) solutions needed for secure access control

 

Justin Kent, partner at FSN Capital dedicated to the Compass Fund, said: “This is an opportunity to invest in companies that will play an important role as society tackles some of the most pressing challenges we face—unlocking significant commercial opportunities in doing so.”

Erik Nelson, partner at FSN Capital dedicated to the Compass Fund, said: “The Compass Fund has partnered with four businesses to date, led by purpose-driven founders and entrepreneurs. We’ve seen the value that the Compass Fund can bring to these businesses to help them reach full potential, whether it’s to build a platform to scale further, support with M&A, or set science-based targets.”

Robin Muerer and Ulrik Smith, Co-Managing Partners at FSN Capital, said: “The Compass Fund is a natural step for FSN. The small-cap thematic strategy complements FSN’s mid-cap flagship strategy, reopening a highly attractive part of the market where FSN’s repeatable value creation model, ESG leadership, and ethos make us a valued partner for growing businesses.”

Morten Welo, Partner, COO and Head of Investor Relations at FSN Capital, said: “FSN is grateful for the trust and support from leading investors around the world. The Compass Fund leverages the structural capital  built over the last 25 years and marks another step on the FSN funds’ journey as leader in responsible private equity ownership.”

The Compass Fund’s diverse investor base includes leading institutional investors and family offices, including endowments, pensions, insurance companies, and funds of funds in the Americas, Europe, and Asia. More than half of commitments came from North America, with approximately 30% from the Nordics and DACH.

The Compass Fund was advised by Campbell Lutyens as placement agent and Kirkland & Ellis as legal counsel, supported by Carey Olsen.

*FSN Capital Partners acts as investment advisor to the Compass Fund.

 

About FSN Capital

Established in 1999, FSN Capital Partners is a leading Northern European private equity firm and investment advisor to the FSN Capital Funds. FSN Capital has a team of more than 90 professionals across Oslo, Stockholm, Copenhagen, and Munich. Our ethos, “We are decent people making a decent return in a decent way” defines our core values.

The FSN Capital Funds have more than €4 billion under management and make control investments in growth-oriented Northern European companies, to support further growth and to transform companies into more sustainable, competitive, international, and profitable entities.  The FSN Funds are committed to being responsible investors and having a positive environmental and social impact across its portfolio while achieving market-leading returns. The FSN Funds are supported by 14 executive advisors with extensive industry experience.

Learn more about FSN on our website: www.fsncapital.com

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Silver Lake Closes $20.5 Billion Fundraise for SLP VII

Silverlake

Underscores Continuing Global Leadership in Large Scale Technology Investing as AI Era Accelerates

MENLO PARK, Calif. & NEW YORK – May 8, 2024 – Silver Lake, the global leader in technology investing, today announced a final close on Silver Lake Partners VII at $20.5 billion in capital commitments, topping its prior flagship fund.

In aggregate over the past five years, Silver Lake has raised $47 billion behind the firm’s singular mission of creating value by partnering with exceptional founders and management teams to build and grow great companies driven by technology at scale.

“We are deeply grateful to each of our investors, new and returning, for the confidence they place in Silver Lake,” said Co-Chief Executive Officers Egon Durban and Greg Mondre on behalf of the firm’s Managing Partners. “We are similarly appreciative of the truly special management teams we are so fortunate work with – the world’s best – with whom we have cultivated successful and winning relationships based on deep engagement and trust through multiple cycles of technology investing at scale.”

“As the promises and risks of the AI era accelerate, our talented team, strong industry network, and ability to commit substantial strategic and operational resources means our horizon of opportunity to make highly select, impactful investments with the potential to generate exceptional performance has never been more compelling,” Mondre and Durban concluded. “We look forward to many more years of collaboration, partnership and sustained value creation together.”

Over the past 15 years, Silver Lake’s flagship funds have in aggregate generated a 21% rate of return, net of fees.

Since the beginning of 2023, distributions to Silver Lake’s investors – including anticipated proceeds based on portfolio company transaction agreements signed to date – will total approximately $20 billion, anchored by the record-setting sale of Silver Lake portfolio company VMware to Broadcom.

On the investment side over the past year, Silver Lake successfully completed a public tender offer to acquire Software AG for approximately $2.6 billion and led three other transformational transactions: the take private of Qualtrics in an all cash transaction valued at approximately $12.5 billion, a $6.4 billion equity re-investment with DigitalBridge in Vantage Data Centers across North America and EMEA, and an agreement to take Endeavor private at an equity value of $13 billion and a consolidated enterprise value of $25 billion.

Silver Lake also recently announced that Christian Lucas, a Managing Director and co-head of the firm’s activities in Europe, has been named a Managing Partner.  Jim Whitehurst, who had previously served as a Senior Advisor to Silver Lake before being named Interim CEO at Unity, has returned to Silver Lake as a Managing Director who will lead operating and investment team initiatives.

Silver Lake invests across the wide spectrum of the global technology sector and in technology-enabled businesses in verticals including sports and live events, media and entertainment, e-commerce, financial services, and health care. Silver Lake’s portfolio of companies represent more than $1 trillion of cumulative enterprise value.

Investors in Silver Lake Partners VII include public and corporate pension funds, sovereign wealth funds, insurance companies, endowments, foundations, funds of funds, family offices, technology industry leaders and individual investors across the Americas, Asia-Pacific, and EMEA.

About Silver Lake

Silver Lake is a global technology investment firm, with approximately $102 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio companies collectively generate nearly $258 billion of revenue annually and employ approximately 517,000 people globally.

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CapMan Special Situations invests in TerraWise

Capman

CapMan Special Situations press release
6 May 2024 at 09:15 a.m. EEST

CapMan Special Situations invests in TerraWise

CapMan Special Situations invests in infrastructure construction company TerraWise. The objective is to further strengthen TerraWise’s position as a leading player in the green and urban landscaping and infrastructure construction space.

TerraWise is one of the leading infrastructure construction companies operating in the Uusimaa and Pirkanmaa regions. The company’s operations are based on three cornerstone capabilities: landscaping and urban construction, land and infrastructure construction and excavation. In addition, the company has growth substrate sales operation in Tampere. TerraWise employs close to 160 dedicated professionals.

CapMan Special Situations becomes the majority owner in TerraWise while the company’s key personnel remain significant minority owners. Tuomas Saarinen will continue as the company’s CEO.

”During the past year and a half, we have managed to turn the business back to profitability. During the first half of 2024, we have significantly built up our order book and profitability has continued to increase substantially. With CapMan’s investment, we are able to strengthen our financial position which is excellent news for our key stakeholders and for the company as a whole. This will also support our profitable growth and improve the company’s competitive position”, says Tuomas Saarinen, CEO of TerraWise.

”TerraWise is a frontrunner in the green urban construction space. The TerraWise team has done outstanding work in developing the business and we will continue to support this development together with the team”, comments Ari Kyöstilä, Senior Investment Manager at CapMan Special Situations.

The completion of this transaction is subject to approval by the Finnish Competition and Consumer Authority.

More information:

Ari Kyöstilä, Senior Investment Manager, CapMan Special Situations, +358 50 337 2002

Tuomas Saarinen, CEO, TerraWise, +358 41 431 7583

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation and over €5 billion in assets under management. As one of the private equity pioneers in the Nordics we have developed hundreds of companies and assets creating significant value for over three decades. Our objective is to provide attractive returns and innovative solutions to investors by enabling change across our portfolio companies. An example of this is greenhouse gas reduction targets that we have set under the Science Based Targets initiative in line with the 1.5°C scenario and our commitment to net-zero GHG emissions by 2040. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover real estate and infrastructure assets, natural capital and minority and majority investments in portfolio companies. We also provide wealth management solutions. Our service business includes procurement services. Altogether, CapMan employs around 200 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001. www.capman.com

About TerraWise

TerraWise is one of the leading infrastructure construction companies operating in the Uusimaa and Pirkanmaa regions. The company’s operations are based on three cornerstone capabilities: landscaping and urban construction, land and infrastructure construction and excavation. In addition, the company has growth substrate sales operation in Tampere. TerraWise employs close to 160 dedicated professionals.

Our clients primarily consist of cities and municipalities, housing cooperatives and construction companies, and we also perform demanding projects for private clients. We act as a trusted expert in projects, from design to execution, with sustainability and our clients in focus. www.terrawise.fi

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Toyota Ventures Raises Another $300 Million to Expand Early-Stage Investments in Frontier Technology and Climate Solutions

Toyota Venture fund

Firm’s committed capital grows to over $800 million, underscoring Toyota’s commitment to investing in groundbreaking startups around the globe

LOS ALTOS, Calif. (April 10, 2024) – Toyota Ventures, the early-stage venture capital arm of Toyota, announced two $150 million funds to expand its investments in startups developing disruptive technologies and business models at the forefront of innovation. The addition of the new funds, Toyota Ventures Frontier Fund II (TVFF II) and Toyota Ventures Climate Fund II (TVCF II), brings the firm’s total assets under management to over $800 million.  

Since its founding in July 2017, Toyota Ventures has furthered its mission of helping Toyota discover what’s next by investing in more than 75 startups across areas ranging from artificial intelligence and robotics to hydrogen solutions and renewable energy. Toyota Ventures is based in the San Francisco Bay Area and has portfolio companies in North America, Europe, the Middle East, and Asia-Pacific. With these new funds, the firm can support more entrepreneurs around the world as they tackle tough challenges to build a better future for society and the planet.  

“At Toyota Ventures, we are explorers. Our role is to understand technology trends that could advance Toyota’s mobility transformation in the near term and embrace the next generation of disruptive innovation in the long term,” said Jim Adler, founder and general partner of Toyota Ventures. “At a time when some investors have scaled back, we’re scaling up by doubling down on our initial Frontier and Climate Funds. With seismic breakthroughs in generative AI, e-fuels, space commercialization, carbon capture, and synthetic biology, it’s a crucial time to be investing for Toyota.”  

TVFF II will focus on startups at the cutting edge of deep technology in areas like AI, robotics, mobility, cloud, and quantum computing, with an eye towards expanding Toyota Ventures’ international presence. The new fund will be led by Frontier Fund partner David Sokolic, a veteran investor and operating executive. Portfolio companies in the initial Frontier Fund include satellite servicing provider Starfish Space, biosensor maker Scentian Bio, and quantum computing software startup Haiqu, among others.  

TVCF II will seek out startups developing smart, scalable solutions that combat climate change and promote environmental sustainability. It will build on the firm’s inaugural climate-focused fund, which launched in 2021 and grew to a portfolio of 18 companies under the leadership of Climate Fund partner Lisa Coca. The first Climate Fund portfolio includes companies in renewable energy like Avalanche Energy; energy storage and batteries like e-Zinc and AM Batteries; carbon capture, removal and utilization like Air Company and Living Carbon; hydrogen solutions like Ecolectro; and other areas aligned with Toyota’s carbon neutrality goals.  

“Innovation is a team sport, and today, more than ever, it’s important for leaders like Toyota to collaborate with up-and-coming startups to take on the critical challenges we all face in a rapidly evolving world,” said Gill Pratt, chief scientist of Toyota Motor Corporation, CEO of TRI, and board member at Toyota Ventures. “These new funds underscore our dedication to supporting entrepreneurs who are pushing the boundaries of what’s possible, and I’m thrilled to continue this journey alongside the Toyota Ventures team and portfolio.”  

Going beyond capital, Toyota Ventures aims to leverage Toyota’s global network, deep technical expertise, and strategic partnerships to assist startups in its portfolio. It has a portfolio support team dedicated to providing guidance in product and business development, fundraising, marketing, and other areas to help companies scale effectively. Some of the firm’s early portfolio companies that continue to partner with Toyota include aerial ridesharing pioneer Joby Aviation and autonomous vehicle leader May Mobility.  

Entrepreneurs seeking early-stage funding are invited to learn more and submit an online pitch at the Toyota Ventures website.  

Supporting quotes and testimonials  

“The team at Toyota Ventures has been instrumental in our growth, having gone above and beyond by not simply offering capital support but also their mentorship in navigating various challenges and paving pathways into Toyota as an early customer,” said Dor Skuler, co-founder and CEO of Intuition Robotics.  

“Toyota Ventures has been a committed strategic partner to Revel since 2018, working with us hand-in-hand as we expanded our business into all-electric rideshare and public fast charging infrastructure in dense cities like New York,” said Frank Reig, co-founder and CEO of Revel. “Beyond financial investments, Toyota Ventures has been essential in creating new relationships to support and develop our mission — the best kind of partner a founder can ask for.” 

“The Toyota Ventures team had a deep level of understanding and appreciation of the technical aspects around the large problems we are solving in the green hydrogen space,” said Gabriel G. Rodríguez-Calero, co-founder and CEO of Ecolectro. “On top of this, the level of guidance we received was well beyond the technical aspects of our business, and it has created enormous value for Ecolectro. Toyota Ventures’ unique approach and engagement shows the holistic support they provide around our whole business beyond just capital.”  

“AM Batteries has experienced significant growth over the past year, thanks in no small part to the invaluable support from Toyota Ventures, “ said Lie Shi, CEO of AM Batteries. “In the time we’ve been working together with Lisa Coca and her team, it has become clear that Toyota Ventures possesses a deep understanding of how corporate venture capital can effectively cultivate successful alliances with startups. Their insight, financial backing, and partnership have been pivotal as we chart the course for AM Batteries’ future endeavors.”

About Toyota Ventures
Toyota Ventures is the early-stage venture capital arm of Toyota. Founded in July 2017, its mission is to discover what’s next for Toyota by helping startups bring disruptive technologies and business models to market quickly. With more than $800 million in assets under management, the firm is dedicated to investing in talented entrepreneurs around the world who are driving innovation in frontier technologies and climate solutions. For more information about Toyota Ventures and its portfolio companies, please visit www.toyota.ventures.

Media Contacts

Maggie Mouat
maggie@toyota.ventures

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Coller Capital becomes largest investor in Permira continuation fund

Coller Capital
  • Coller represents 50% of secondary commitments into new Permira continuation fund
  • Permira continuation fund to include assets from Permira IV and V

London, 04 March 2024 – Coller Capital, one of the world’s leading investors in the secondary market for private assets, has committed to Permira’s new continuation fund. The commitment makes Coller Capital the largest investor, accounting for 50% of the fund.

The continuation fund will include five assets from Permira’s existing funds and provide capital over a five-year period to support further value creation in the underlying companies.

This transaction is Coller Capital’s second GP-led secondary investment with Permira, having also been the lead investor on a Permira GP-led secondary transaction which closed in 2020. Coller and Permira have transacted numerous times beforehand, specifically as it relates to Permira funds IV and V, attesting to the strong partnership between the two organisations.

Martin Fleischer, Coller Capital, commented: “We are pleased to partner with Permira once again on another GP-led transaction. This is exactly the type of investment we specialise in, focusing on high quality underlying companies managed by an outstanding GP”.

This transaction demonstrates Coller’s ability to structure unique investments that provide exposure to strong growth across the private equity lifecycle. This solution allows existing investors to maintain access to these promising assets ‘status quo’ or to take liquidity if desired.

Mentions

Martin Fleischer

Principal, Investment
Press contact
Edelman Smithfield
coller@edelmansmithfield.com+44 (0)7980 684 247

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GEC Capital raises new investment from 819 Capital Partners

819 Capital Partners

Golden Egg Check has announced that their venture capital fund GEC Capital has raised 2.5 million euros. 819 Capital Partners is one of the new cornerstone investors in the fund.

 

 

 

GEC Capital has a portfolio of 14 startups, mostly Dutch software companies. With the new capital injection from 819 Capital Partners and several (former) tech entrepreneurs and investment companies, the fund now has 2.5 million euros available to invest. Before the summer, Golden Egg Check aims to close the fund at 5 million euros. GEC Capital aims to make a total of 30 to 35 investments in tech companies over three years.

Distinctive about the investment strategy of GEC Capital is the co-investment model, in which investments are always made together with a specialized venture capitalist or with a group of relevant angel investors.

Thomas Mensink, partner at GEC Capital, explains how this works: “We cleverly hitch a ride on their knowledge and expertise. At the same time, we bring in our network of investors so that our portfolio companies get faster and better access to (follow-on) capital. We outsource most of the paperwork to the lead investor and don’t need board seats either. In this way we can do many deals with a small team and ensure an optimal spread for our investors.”

Investors contributing capital and knowledge to GEC Capital include 819 Capital Partners, Koejans Capital, Arjé Cahn (ex-Hippo), Geert-Jan Smits (ex-Flinders, author “The start-up scorecard”) and Investeringsfonds Groningen.

819 Capital Partners is one of the new cornerstone investors in the fund. In addition to the investment, Golden Egg Check and 819 Capital Partners will intensify their cooperation.

Wim Smit, Managing Partner at 819: “Like GEC, we believe in an ecosystem approach. However, 819 opts for active management with larger investments in fewer companies. Collaborating with GEC’s team allows us to monitor in-depth so that we can move forward with the most promising companies. With this approach, we have the best of both worlds.”

Jan-Willem Tusveld (founder Visymo, Koejans Capital): “The team has a huge network of both startups and investors. The strategy of co-investing with top VCs appealed to me and fits with my preference to invest in startups as widely as possible. In addition, I like to encourage quality initiatives from the region and it gives me great satisfaction to see the team make strides.”

Jan Martin Timmer, Fund Manager at Investment Fund Groningen, explains why IFG invested in GEC Capital I: “In addition to the investments in Groningen that the fund plans to make, we also see the value of the network of international investors that GEC can bring to our region.”

819 Capital Partners, Koejans Capital and IFG will serve on the Advisory Board to provide GEC Capital with further advice on portfolio management, M&A and strategy. 

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Partners Group reports AuM of USD 147 billion per end of 2023; increases guidance for gross client demand in 2024

Partners Group

Baar-Zug, Switzerland; 11 January 2024 | Ad hoc announcement pursuant to Art. 53 Listing Rules (LR)

  • USD 18 billion gross client commitments received; new firmwide record for number of mandates raised
  • USD 13 billion invested and USD 12 billion realized across private markets asset classes despite challenging transaction environment; thematic pipeline remains strong
  • 2024 guidance on gross client demand of USD 20 to 25 billion with a tilt towards H2

Partners Group received USD 18 billion in new commitments from its global client base in 2023 (guidance USD 17-22 billion), bringing the firm’s total assets under management (AuM)[1] to USD 147 billion as of 31 December 2023 (31 December 2022: USD 135 billion), up 8% year-over-year. The firm committed USD 13 billion[2] (2022: USD 26 billion) globally to investments across private markets asset classes and generated USD 12 billion (2022: USD 14 billion) in realizations. Partners Group guides for USD 20 to 25 billion in expected client demand for the full-year 2024. The higher end of the range assumes a normalization of the market environment in H2 2024.

David Layton, Partner and Chief Executive Officer, comments: “The strength of our integrated platform was highlighted again in 2023 by robust client demand for our bespoke solutions. We set a new Partners Group record for the number of mandates raised during the year, which is testament to our ability to craft differentiated and long-term private markets solutions for individual clients. In a challenging year characterized by a decrease in transaction volumes, slower exits, and muted fundraising activity overall, we were pleased to be able to deliver robust AuM growth. While transaction activity was slower to recover than anticipated in the second half, we do see signs of improvement in the market as we enter 2024. In this new private markets paradigm, our transformational investing approach and ability to tailor bespoke solutions for our clients will remain our key growth drivers.”

USD 18 billion in new client demand, led by bespoke client solutions

 

Managing over 300 diverse private markets portfolios in different stages of their lifecycle across all private markets asset classes is Partners Group’s key strength and differentiator. Overall, client demand resulted in total new commitments of USD 18 billion (2022: USD 22 billion). In H2 2023, Partners Group’s clients committed 27% more versus H1 as the pace of client conversion rates improved but remained slower than usual. For the full-year 2023, the firm generated solid demand across its three principal offering types:

  • Mandates (USD 8.3 billion raised): Partners Group’s differentiated portfolio management capabilities enable the firm to tailor investment content to each individual client’s desired risk/return profile and investment level, in order to deliver specific objectives and sustained results throughout market cycles. Mandates raised in 2023 will contribute to the base for future AuM growth. As of 31 December 2023, Partners Group manages 38% of its AuM in mandates (USD 56.5 billion).
  • Evergreens (USD 4.8 billion raised): these programs allow for a certain amount of liquidity and enable individual investors to access private markets more conveniently. Partners Group has been a leading global provider of evergreen programs for more than 20 years, offering private wealth clients access to private markets. As of 31 December 2023, Partners Group manages 30% of its AuM in evergreen programs (USD 44.1 billion).
  • Traditional closed-ended private market programs (USD 5.1 billion raised): beside the more bespoke solutions mentioned above, Partners Group continues to offer traditional commingled funds with multiple investors. These are typically limited partnerships with a pre-defined contractual life. In 2023, several new flagship programs were launched towards the end of the year. As of 31 December 2023, Partners Group manages 32% of its AuM in traditional private markets programs (USD 46.3 billion).

During the twelve-month period to 31 December 2023, AuM grew by USD 11.5 billion. Gross client demand stood at USD 18.2 billion before tail-down effects from mature private markets investment programs amounting to USD -8.2 billion, as well as redemptions from evergreen programs amounting to USD -4.5 billion. Foreign exchange effects further affected AuM growth by USD +2.9 billion during the period. A final USD +3.1 billion came from a select number of investment programs that link AuM to NAV development[3].

Breakdown of total AuM as of 31 December 2023 (in USD billion):

2023 2022 Last 5 years CAGR[4] Gross client demand
Private equity 75.5 71.2 + 13 % 7.7
Private debt 29.3 26.8 + 11 % 4.4
Private infrastructure 25.2 20.8 + 19 % 3.7
Private real estate 17.0 16.5 + 4 % 2.4
Total 146.9 135.4 + 12 % 18.2

 

 

USD 13 billion invested

 

Partners Group’s transformational investing approach led to USD 13 billion[5] (2022: USD 26 billion) invested on behalf of the firm’s clients into companies and assets that are well positioned in structurally growing areas of the economy. The transaction environment in the second half of the year improved only moderately despite the increased availability of financing. Partners Group placed emphasis on the conversion of its thematic investment pipeline to identify attractive businesses that operate within specific pockets of transformative growth. For example:

  • In private equity, Partners Group agreed to acquire ROSEN Group, a global provider of mission-critical inspection services for energy infrastructure assets, in November. ROSEN’s core service prevents avoidable incidents, which can have meaningful environmental and financial impacts, and endanger lives, helping customers to optimize throughput and extend the useful life of essential infrastructure assets. Value creation initiatives include expansion into new future energy sources such as hydrogen transportation pipes, adoption of artificial intelligence, and a further build-out of R&D.
  • In private infrastructure, Partners Group agreed to invest in Exus, an international renewables asset management and development firm. Exus is set to benefit from thematic trends including rising demand for decarbonization from corporates and strong regulatory support for renewables. Value creation initiatives will include transforming Exus into a builder, owner, and operator of assets, thereby owning the full value creation process. In addition, Partners Group will focus on scaling the origination capacity to over 1 GW per annum.

Partners Group invested 60% of its total global volume into direct assets on behalf of its clients. The remaining 40% of the total investment volume was invested into portfolio assets. These included secondary investments into globally diversified private markets portfolios, select primary commitments to other complementary private markets strategies, and investments into the broadly syndicated loan market.

USD 12 billion realized

Portfolio realizations amounted to USD 12 billion (2022: USD 14 billion). The transaction environment remained challenging throughout the majority of the year, and therefore several exits originally planned for H2 were postponed. A small number of businesses including Civica, a global provider of cloud software solutions, were successfully divested in 2023. Over the six-year holding period, Partners Group transformed Civica into a pure software business, doubling its EBITDA. Another example was the full exit of Borssele, an offshore windfarm in the Netherlands, which the firm sold to several infrastructure asset managers. Partners Group built this asset into a 731.5 MW windfarm from construction through to operation.

Outlook 2024

Partners Group continues to see strong structural tailwinds for the private markets industry and its outlook for long-term, sustainable growth remains in place. In particular, the firm sees two major areas of growth for private markets client demand: tailored mandates and investment solutions for private wealth investors. In both of these categories, Partners Group has an established leadership position with over 20 years of experience building bespoke solutions.

For the full-year 2024, Partners Group expects to raise between USD 20 to 25 billion in total client demand. The firm bases its guidance on an expected normalization of the investment environment and continued strong interest in its bespoke solutions and flagship offerings. Partners Group’s full-year estimates for tail-down effects from more mature closed-ended investment programs and redemptions from evergreen programs remain largely unchanged at USD -11.0 to -13.0 billion.

Sarah Brewer, Partner and Global Co-Head Client Solutions, adds: “Looking ahead to 2024, we anticipate that bespoke solutions will continue to be the key driver of fundraising as clients are increasingly looking to expand their exposure to private markets via differentiated solutions that meet their specific portfolio needs. Additionally, the mandates raised in and before 2023 are expected to contribute to future AuM growth because mandate clients are typically long-term, strategic relationships that increase their target allocations over time and in line with the rising set of investment opportunities. At the same time, we envisage solid demand for our traditional programs and expect that our evergreen solutions will remain an important contributor of client demand in 2024.”

Conference call today

Partners Group’s senior management will hold a conference call today at 6:15pm CET. To register for the call, please click here or use the contact details at the end of this press release.

Key dates/publications 2024

19 March 2024 Financial Results as of 31 December 2023
22 May 2024 Partners Group Holding AG shareholder AGM 2024
11 July 2024

03 September 2024

 Announcement of AuM as of 30 June 2024

Interim Financial Results as of 30 June 2024

[1] AuM is an Alternative Performance Metric (APM). A description of the APMs can be found in Partners Group’s 2022 Annual Report on pages 32-33, available for download at http://www.partnersgroup.com/en/shareholders/reports-presentations/. AUM figures are for Partners Group Holding AG, inclusive of all Partners Group affiliates.

[2] Respective year includes syndications.

[3] Partners Group reports fee-paying AuM. Most of the firm’s evergreen programs base fees on NAV. The portfolio performance during the period impacts the NAV of these products and this translates to a corresponding change in firm-level AuM. As always, calculations for semi-annual AuM numbers for evergreen programs are based on 31 May NAV valuations. Full-year AuM numbers are based on 30 November NAV valuations.

[4] CAGR: compound annual growth rate for net assets for the period 31 December 2018 – 31 December 2023.

[5] Respective year includes syndications.

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