LONDON, September 10, 2013 /PRNewswire/ --
Kreos Capital today announces EUR 240 million (USD 320 million) of commitments at the June 2013 final close of its most recent pan-European growth debt fund, Kreos Capital IV ("Kreos IV"), from a diverse group of 20 limited partners.
- Kreos IV has significantly increased its fund size from EUR 200 million to EUR 240 million in light of a growing range of opportunities and strong market demand for its debt products.
- Kreos's top-tier investors include a wide variety of European and US institutions.
- Kreos IV has no leverage in the fund, which gives great stability in any market turbulence and a more flexible platform to support our companies and co-investors.
- The final close will enable Kreos IV to target up to EUR 600 million of lending over the full commitment period of the fund, to more than 100 fast-growing companies in Europe and Israel across all stages and a wide range of industries.
- Kreos IV expects to commit to single transactions up to EUR 15 million and in several cases EUR 20-30 million of total funding as a company develops.
- Kreos IV has already committed some EUR 150 million (USD 200 million) to 40 high-growth companies since it started investing in Q2 2012, with up to EUR 450 million available for further investments over the next three to four years.
"Kreos's growth debt facilities are an excellent fit for many of this market's later stage growth companies," said Marten Vading, general partner of Kreos. "We enable our equity sponsor partners to keep the continuity of their boards, their strategies and exit horizons while giving the management teams the capital they need to keep up their growth trajectories all the way to a profitable exit without giving away control."
Kreos growth debt facilities are structured as operationally flexible, short-term, no-covenant loans, with equity and exit upside potential, and with minimal dilution for management teams and equity sponsors.
"We have a strong track record of having supported our companies through 2 business cycles and we will continue to do this," highlighted Ross Ahlgren, general partner of Kreos. "Demand has certainly increased due to the current funding gap - but this is not a recent development as our portfolio companies have always valued the Kreos team's flexibility and continuity. We have been together for more than 15 years providing a very stable financing partner that has the firepower to reinvest if needed."
Kreos's growing portfolio of high-growth companies includes Wonga, Openet, Heptagon, Celltick, Altair, Glasses Direct, Delivery Hero, Westwing, Crytek, Get Taxi, Agnitio, Achica, Kreditech and Solaredge.
Azla Advisors, led by Managing Director David Waxman, served as advisor, with Tom Beaudoin of Goodwin Procter serving as lead counsel to Kreos Capital.
ABOUT KREOS CAPITAL
Kreos is the leading growth debt provider for high-growth companies in Europe and Israel. Since 1998, Kreos has committed more than EUR 1 billion of innovative debt financing solutions in over 300 transactions, with an emphasis on the UK, France, Germany, the Nordics and Israel. Having worked together for 15 years the Kreos team has built experience and relationships across multiple cycles. Kreos is dedicated to supporting management teams and equity sponsors in fast-growing companies with revenues up to EUR 150 million. Kreos's flexible loan structures support growth capital and working capital financings across all stages, including acquisition, lower mid-market buy-out transactions and roll-up strategies as well as pre-IPO financings. With the final closing of Kreos IV, which is backed by top-tier institutional investors and has up to EUR 600 million of commitment capacity, the team is able to commit a further EUR 450 million (USD 600 million) to Kreos's target market in the coming three to four years in addition to the EUR 150 million (USD 200 million) already committed.
SOURCE Kreos Capital