New York, USA-based investment company that offers its services to institutions, intermediaries, foundations, and individual investors, Blackrock, entered into a definitive agreement to acquire Kreos Capital. The latter is a UK-based growth debt firm that provides financing solutions for high-growth companies across Europe and Israel. The company announced the acquisition on June 8, 2023. However, the amount of the deal was not disclosed.
Purpose of acquisition by Blackrock
With the latest of Kreos Capital, BlackRock strengthens its position as a leading global credit asset manager. It further gets to advance 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.
What the Blackrock official has to say
James Keenan, CIO and Global Head of BlackRock Private Credit said, “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.”
In addition, 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 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.”
What the Kreos Capital has to add
Mårten Vading, Co-founder and General Partner at Kreos Capital, further added, “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.”
Besides, Raoul Stein and Ross Ahlgren, Co-founders, and General Partners at Kreos Capital, said, “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 growing 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.”
About Kreos Capital
In 1998, Founders Maurizio PetitBon, as well as Ross Ahlgren launched Kreos Capital. Since its inception in 1998, Kreos Capital has committed more than EUR 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.
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