KBC sells majority of PE portfolio to KeBeK

KeBeK Management, which manages KeBeK I, is a team of four former KBC employees. The spin-off and the establishment of the new fund was supported by LGT Capital Partners.

KeBeK I, which secured commitments of €67m, is the dedicated buyout fund for this transaction. It holds enough capital to service management fees and top-up investments.

A second fund, KeBeK II, which LGT is also invested in, is looking to hold a first close in 2013, with an overall target of €100m. KeBeK is looking to secure commitments from predominantely Belgian family offices and HNWIs for the first close. The fund will target international instiutional investors at a later point in the fundraising process. The fund will buy majority or controlling minority stakes in businesses with a presence in Belgium. KeBeK II is looking for investment opportunities in traditional sectors and companies with an EV of €10-50m. Axon Partners, represented by Simon Wigg, will act as a placement agent for fundraising outside of Belgium.

The transaction will not impact KBC's overall earnings or capital.

Following a transition period, KBC will be fully divested by the end of 2012.

Company
KBC Private Equity is the private investments arm of Brussels-based KBC Group.

After receiving government support during the financial crisis, the firm announced its new corporate strategy in 2009, which includes refocusing on core capabilities like bancassurance and the reduction of risk-weighted assets. In October 2011, JC Flowers acquired KBC's insurance unit Fidea for €243.6m.

Since July 2010, KBC Private Equity has actively been divesting its portfolio, resulting in proceeds of around €250m.

People
KeBeK Management was led by managing partners Floris Vansine and Gert Van Huffel and partners Ast Verbiest and Gerd Smeets. Vansina also serves as CEO of KBC. Managing partner Ivan Vercoutere represented LGT. Floris Vansina is CEO of KBC Private Equity.

Advisers
Equity – Axon Partners, Andrew Kellett (Placement agent); Loyens Loeff (Legal).
Vendor – Baker & McKenzie (Legal).

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