BlackRock to acquire Private Debt Manager Kreos Capital
8 JUN, 2023
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.
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 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's earnings.
Moelis & Company acted as the exclusive financial adviser and Goodwin Procter London provided legal advice to Kreos Capital. Skadden, Arps, Slate, Meagher & Flom provided legal advice to BlackRock.
