Kreos closes fifth debt fund on €400m hard-cap

The fund had an initial target of €350m, but the hard-cap was increased to meet strong investor demand, general partner and COO Simon Hirtzel said. He told unquote" there was excess demand of at least 50% at the time of the final close.

Fundraising began in late Q1 last year and had completed by the end of Q4, though no investments were made until the commitment period of Kreos's previous fund had run its course by the end of 2015.

Kreos V began investing at the start of 2016 and has committed capital to six companies in Europe and Israel, as a result of strong dealflow, the GP said.

Hirtzel said the fund structure, lifespan and terms are in line with the overall market. The vehicle's minimum commitment was €5m, though the COO said the average LP investment was around €20m.

Kreos, formerly known as European Venture Partners, mandated placement agent Azla Advisors to lead the fundraising effort for Kreos Capital V. Goodwin Procter was the legal adviser to Kreos.

Investments
Kreos V will follow the Kroes's existing strategy and provide debt facilities of up to €30m per ticket to growth companies in Europe and Israel.

The GP provides debt facilities that are operationally flexible loans with no covenants and minimal dilution for management teams and equity holders.

Through Kreos V, the debt firm expects to invest €150-200m per year in a total of around 100 companies over the fund's lifespan.

Investors
The GP did not name LPs in Kreos V, but the investor base consists of US and UK institutional investors.

Hirtzel said the LP mix in the fifth fund was similar to its predecessor, and included pension funds, insurance companies, endowments, larger family offices and private wealth managers. The split between UK and US investors was roughly proportional to the overall geographic split of LPs.

People
Kreos Capital – Mårten Vading (founder, general partner); Ross Ahlgren (founder, managing partner); Simon Hirtzel (COO, general partner).

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