
Kreos Capital holds €700m close for sixth growth debt fund
London-based debt fund manager Kreos Capital has held a €700m final close for its Kreos Capital VI growth debt vehicle, surpassing its initial €600m target.
The fund is larger than its predecessor, Kreos Capital V, which closed on its €400m hard-cap in January 2016.
Azla Advisors served as global placement agent, with the support of Growth Capital Services for US placement. Goodwin Procter acted as lead counsel to Kreos Capital and Carey Olsen advised on the fund's establishment as a Jersey Expert Fund.
Kreos is able to structure a loan across multiple jurisdictions and typically provides flexible financing alongside well-known equity sponsors.
Investors
Kreos Capital VI's LP base consists of a diverse range of US and European institutional investors, including two sovereign wealth funds, public and private pension funds and insurance companies, and university and charity endowments. In addition, two new Asian investors also committed to the fund. According to the GP, Kreos VI experienced strong re-up and increased allocation from previous investors.
Investments
Kreos Capital VI provides growth debt financing to companies generating revenues of more than €200m, based in Europe and Israel, and operating in the technology and healthcare sectors. The GP has already started to deploy capital from the fund and expects to invest around €250-300m per annum over the coming years.
The vehicle deploys growth financing of more than €50m in single transactions, with additional follow-on funding as the company develops – and can lend significantly higher amounts in combination with its investors. Furthermore, the vehicle provides scalable debt facilities and flexible loans with no covenants and minimal dilution for management teams and equity holders.
This flexible investment approach is based on amortisation – with paybacks on a regular basis from early on in the deal – and senior security, which allows the GP to play a significant role as the company's growth plans evolve.
Kreos Capital – Ross Ahlgren (general partner).
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater