Kreos IV holds final close on €240m

Karin Wasteson
12 September 2013

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Kreos Capital has held a final close on тЌ240m for its Kreos Capital IV Growth Debt Fund.

The fund held a first close in January 2012 on €120m. Initially the GP planned to raise €200m in 2012, but increased its target to €240m due to increased demand. Kreos growth debt facilities are structured as short-term, no-covenant loans, with equity and exit upside potential. The fund is not leveraged.

The GP's previous vehicle, Kreos III, closed on its €200m target in December 2006. The commitments were provided by several institutional investors including cornerstone investments by Merrill Lynch, Deutsche Bank and the European Investment Fund. The fund provides debt financing in the form of venture loans and venture leases to start-up companies mainly based in Europe and Israel.

Kreos's portfolio includes Wonga, Openet, Heptagon, Celltick, Altair, Glasses Direct, Delivery Hero, Westwing, Crytek, Get Taxi, Agnitio, Achica, Kreditech and Solaredge.

Since its inception in 1998, Kreos has committed debt financing worth in excess of €1bn to more than 300 companies with turnovers of up to €150m in the UK, France, Germany, the Nordics and Israel.

Azla Advisors acted as placement agent for the fund, while Goodwin Procter provided legal services.

Investors
The fund attracted commitments from 20 European and US institutional investors.

Investments
Kreos IV will invest up to €15m in a single transaction – and in several cases €20-30m of total funding – in more than 100 companies in Europe and Israel.

Kreos IV started investing in Q2 2012, and has provided €150m to 40 companies to date.

People
Marten Vading and Ross Ahlgren are general partners at Kreos.