BlackRock, Inc. to Acquire Private Debt Manager Kreos Capital
June 08 2023 - 3:00AM
Business Wire
Accelerates growth of BlackRock’s Credit
platform with a complementary acquisition providing clients with
access to growth and venture debt lending strategies
BlackRock Inc. (NYSE: BLK) and Kreos Capital (“Kreos”) today
announced a definitive agreement under which BlackRock will acquire
full control of Kreos, a leading provider of growth and venture
debt financing to companies in the technology and healthcare
industries.
The acquisition of Kreos adds to BlackRock’s position as a
leading global credit asset manager and advances its ambitions to
provide clients with a diverse range of private market investment
products and solutions. Kreos complements BlackRock’s Global Credit
business with a seasoned investment team and successful long-term
track record, while the adjacent asset class unlocks additional
private debt capabilities for BlackRock’s clients to access a
larger proportion of the risk/return spectrum.
James Keenan, CIO and Global Head of BlackRock Private
Credit, commented: “Over the past 20 years, BlackRock has built
leading private debt capabilities to help clients achieve a variety
of investment goals by aligning proven investment excellence with
long term market opportunities. The Kreos team has built a world
class investment process and delivered for clients through multiple
cycles. Coupled with our expectation that growth and venture
lending will figure prominently in the expansion of the global
direct lending opportunity set going forward, we believe this is an
opportune time to welcome the Kreos team to BlackRock.”
Stephan Caron, Head of EMEA Private Debt at BlackRock,
commented: “Private debt investing has become an increasingly
important component of investors’ portfolios. BlackRock’s recent
Global Private Market Survey found that more than half of
respondents plan to increase their private credit holdings in 2023.
Current market dynamics have made private credit an attractive
asset class as investors focus on its income generation, low
volatility, portfolio diversification and its low defaults versus
public markets. The addition of this high-quality team, with an
excellent track record across multiple market cycles, creates an
opportunity for BlackRock to offer a larger proportion of the
risk/return spectrum to investors globally.”
Mårten Vading, Co-founder and General Partner at Kreos
Capital, commented: “As a pioneer of private debt solutions for
high growth technology and healthcare companies in Europe and
Israel, Kreos is now taking the next step by accelerating the
business and partnering with BlackRock. The transaction enables us
to leverage BlackRock’s scale, resources, and technology to create
a holistic product offering that serves innovative companies
globally.”
Raoul Stein and Ross Ahlgren, Co-founders, and General
Partners at Kreos Capital, commented: “We are excited to see
BlackRock’s continued commitment to private debt in general, and
growth lending specifically. The combination of BlackRock and Kreos
will provide a wide range of credit solutions to the growth
ecosystem. The acquisition of Kreos by BlackRock is a testimony to
the strength and importance of the innovation and technology
sectors to the world’s leading asset manager.”
Since its inception in 1998, Kreos Capital has committed more
than €5.2 billion across more than 750 transactions in 19
countries, to more than 550 pan-European and Israeli high-growth
companies in the technology and healthcare sectors. In technology,
the firm has invested across fintech, enterprise software,
cybersecurity, semiconductors, digital marketing, AI, and other
sub-sectors. In healthcare, it has backed companies in areas such
as drug and treatment development, medical products and devices,
and healthcare tech.
Kreos is headquartered in London and its 45-person team, which
will join BlackRock as part of the transaction, has demonstrated
strong performance over a 24-year track record. Kreos’ investment
team will integrate into BlackRock’s European Private Debt platform
and current Kreos leadership will continue to be responsible for
executing on the firm’s proven investment strategies.
The transaction, which is expected to close in Q3 2023, is
subject to customary regulatory and closing conditions. The
financial impact of the transaction is not material to BlackRock
earnings.
Moelis & Company acted as exclusive financial adviser and
Goodwin Procter London provided legal advice to Kreos Capital.
Skadden, Arps, Slate, Meagher & Flom provided legal advice to
BlackRock.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate
About Kreos Capital
Kreos Capital is the leading venture and growth debt provider in
Europe and Israel, backing high-growth companies through every
stage of their lifecycle. Kreos targets investments in all areas of
the Technology and Healthcare sectors, and, to date, has committed
€5.2 billion in more than 750 transactions, across 19
countries.
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Media
EMEA Venetia Varney +44 7776 496863
venetia.varney@blackrock.com
Americas Christopher Beattie +1
(646) 231-8518 christopher.beattie@blackrock.com
Investor Relations
Caroline Rodda +1 (212) 810-3442
Caroline.Rodda@blackrock.com
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