Kreos Insights

Kreos Capital has launched‚ €700m ($800m) Kreos Capital VI

By 06/02/2019August 13th, 2021No Comments

Kreos is celebrating 20 years as the European and Israeli growth debt market leader

In sync with celebrating Kreos Capital’s 20-year anniversary, Kreos has launched its latest, and to date largest growth debt fund, EUR 700 million (USD 800 million) Kreos Capital VI, reinforcing its commitment to the European and Israeli growth ecosystem.

  • Kreos VI has been oversubscribed, reflecting Kreos’s successful 20-year track-record and strong market position, experienced and stable organization, and continuous evolution of its growth debt model to support high-growth companies and their equity investors with tailored and non-dilutive financing solutions.
  • Kreos VI has already started to deploy capital in January 2019 and Kreos expects to commit some EUR 250-300 million per annum over the coming years.
  • Kreos VI is the largest growth debt fund in Europe and Israel, and Kreos can execute growth financings of more than EUR 50 million (USD 60 million) in single transactions with additional follow-on funding as the company develops – and can lend significantly higher amounts in combination with its fund investors.
  • Kreos has reached a new milestone of a total of USD 2 billion of raised fund capital from 50 top-tier institutional investors making it the leading independent specialist lender for high growth companies in Europe and Israel, covering all industries within technology and healthcare, and having committed EUR 2.3 billion (USD 2.7 billion) in 540 growth debt transactions in Europe and Israel over the last 20 years.
  • Kreos has continued to expand its LP base of top-tier institutional investors including a wide range of sovereign wealth funds, university endowments, foundations, corporate and public pension funds, insurance companies, supranational funds, family offices and asset managers from Europe, the US and Asia.
  • Kreos is committed to continue investing in and developing the growth lending ecosystem and expanding its team, announcing a number of promotions with the launch of Kreos VI.

M√•rten Vading, co-founder and General Partner of Kreos, said: Over the last 20 years, we have continuously evolved our alternative and complementary growth capital model to cover all industries and stages of a companys development, from entry-level growth, via mid-stage, through late-stage and into pre-exit/pre-IPO as well as financing publicly-listed growth companies. Our extensive experience from a broad range oftransactionsthrough three market cycles combined with our structuring flexibility and funding capability, enable Kreos to act as a stable one-stop-shop partner for complementary growth capital structured as non-dilutive debt facilities.

Raoul Stein, co-founder and General Partner of Kreos, continued: Kreoss long-term commitment to the European and Israeli growth market is now reinforced with the launch of our new flagship fund Kreos VI, where we are very grateful to welcome existing as well as new top-tier global fund investors. Our fund platforms stable and supportive investor base is a key value in our offering and is also highlighting Kreoss successful performance over two decades.

Kreos has committed more than EUR 2.3 billion in 540 transactions over the last 20 years and Kreos’s current and past portfolio of high-growth companies within technology and healthcare includes Pharming (AMS: PHARM), Delivery Hero (FRA: DHER), Westwing (FRA: WEW), Abivax (EPA: ABVX), SolarEdge (NASDAQ: SEDG), Heptagon (ams AG, SWX: AMS), Bonesupport (STO: BONEX), Kiadis (AMS: KDS), Nicox (EPA: COX), LoveFilm (Amazon,NASDAQ: AMZN), Bookatable (Michelin, EPA: ML), Mister Spex, Minute Media, Zerto, EarlySense, Puls, Riskified, Dreamlines, SoundCloud, Smava, Docplanner, Biocatch, and Currency Cloud.

Kreos tailors its facilities and the terms to each situation to allow for maximum value creation and capital efficiency for the growth company and its investors. Kreos’s financing is typically used as additional expansion capital and a complement to equity to drive incremental value in the underlying business, increasing the enterprise valuation. The capital can support organic growth via product and marketing investments as well as non-organic acquisitions or roll-up strategies. Within healthcare, it can also facilitate the successful completion of key clinical or market launch milestones. It can also be used for debt refinancing, to free up working capital, cover seasonality in earnings or merely strengthen the balance sheet and operating flexibility in relation to customer, partner, equity, pre-IPO or M&A negotiations, where incremental value creation can be significant. It is a tailored and flexible solution, while at the same time lowering the cost of the total financing, creating less dilution, avoiding any strategic agenda, control rights or further complexity in the shareholder structure, and increasing the return for management and investors.

Ross Ahlgren, co-founder and General Partner of Kreos, said: Kreos believes that each situation and company is unique and we provide tailored, risk-based financing, where we focus on value-drivers in the business. Companies that prioritize value-creating growth over near-term profitability are typically not in the market for traditional bank lending and need a more bespoke product with greater flexibility. Kreos has a dynamic approach to risk and can offer scalable debt facilities without financial covenants or other constraints that could limit the effectiveness of the financing and/or the value-creation and growth of a company. With Kreos VI, we can provide significant individual growth capital facilities and continue our mission to support the European and Israeli technology and healthcare growth ecosystem with innovative financing solutions.

Kreos has developed its model over the last 20 years and today it does a substantial amount of follow-on facilities as the portfolio companies grow into later stages, where Kreos can provide significant amounts, tailored to match the evolving financing requirements, and implemented in a fast and efficient process. In some situations, the financing relationship with a company can last for more than 10 years. Kreos does not utilize Fund Leverage and is 100% financed by equity from its long-term institutional Limited Partners, which gives Kreos the ability to act as a flexible and stable financing partner through all stages of a company’s development and independent of the state of the macroeconomic environment.

With the launch of Kreos VI, Kreos is also announcing the promotions of several key individuals, reflecting their dedication and successful work over the past years. Sean Dunne has been promoted to Partner; Chris Church, Jack Diamond and Cian O’Driscoll have been promoted to Vice President; Matteo Avramov Giulivi and Melissa Donohoe have been promoted to Associate; and Tim Fenwick and Krishnan Patel have been promoted to Senior Analyst. Kreos also announces the recent hires of Alex Garbedian as an Analyst, as well as Marcela Siddall as Finance Director.

For the Kreos VI fund raising, Azla Advisors, led by Managing Director David Waxman, served as global placement advisor (with the support of FINRA member Growth Capital Services for US placement), with Tom Beaudoin and Greg Barclay of Goodwin Procter serving as lead counsel to Kreos Capital.

About Kreos Capital  

Kreos Capital is the leading provider of growth-debt financing to high-growth companies in Europe and Israel with revenues up to EUR 300 million. Since 1998, as the pioneer growth debt provider across Europe and Israel, Kreos has completed 540 transactions and committed more than EUR 2.3 billion in 15 different countries. Kreos is dedicated to supporting management teams and their equity investors with flexible loan structures for all stages of a growthcompanys development and to address the needs for growth capital, working capital, acquisition financings, lower mid-market buy-outs, roll-up strategies, banks re-financings as well as pre- and post-IPO financings. Kreoss most recent fund, EUR 700 million Kreos VI, was launched in January 2019The Kreos global team has extensive debt financing, management and equity investing experience, covering the markets in Europe and Israel from its locations in London, Tel-Aviv and Stockholm. 

For more information on Kreos Capital: 
Simon Hirtzel, General Partner and COO