Cathay Capital invests in The Independents

Greg Gille
12 September 2017

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Cathay Capital has backed the merger of French communications agencies K2 and Karla Otto, with the new business named The Independents.

The Sino-French investor secured a minority stake in the business following the merger, while founders Isabelle Chouvet and Karla Otto will hold the majority of the shares.

LGT European Capital and Tikehau Capital provided additional unitranche financing for the transaction and to fund future growth.

The fresh capital provided by Cathay and the debt facilities arranged by LGT and Tikehau total €60m, unquote" understands.

Company
The Independents combines K2 and Karla Otto, two French communication agencies focused on the luxury, fashion and lifestyle industries. The two businesses will keep operating under their own brands and collectively employ around 400 people, with offices across Europe, North America and Asia.

People
Cathay Capital – Edouard Moinet (managing partner); Jérémie Falzone (investment director); Dorothée Chatain (vice-president).
LGT European Capital – Guillaume Claire (investment director); Samantha Schwartz (associate).
Tikehau Capital – Cecile Mayer-Levi (head of private debt); Margaux Fabre (investment executive).

Advisers
Equity – KPMG, Jean-Philippe Chiarasini (corporate finance); Hogan Lovells, Stephane Huten, Florian Brechon, Audrey Distler (legal).
Company – Transaction R, Mathilde Paoli (debt advisory); Reedsmith, May Wong, Denise Jong (legal); HFW, Diane de Mouy, Olivia Crouzat (legal); PwC, David Willems (financial due diligence); Advention, Alban Neveux (commercial due diligence).