Private Equity Deals & Transactions

Keensight nets 12x on LDR

On its last three exits, the Paris-based firm has generated an average multiple of 5x

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LDR manufactures, develops and markets implantable spinal devices based on minimally-invasive surgical technology for the treatment of patients suffering from vertebral problems. LDR offers a range of medical solutions, including its flagship product Mobi-C, a cervical disc prosthesis used to replace damaged discs in the vertebral column while helping to maintain the mobility of the spine.

Keensight Capital first invested in LDR in 2005, using capital from its Fund II. The firm then increased its stake in 2012, using capital from the firm’s Fund III. The sale has netted a 12x return for Keensight’s Fund II and a 3x return for the firm’s Fund III, according to a market source. Keensight declined to comment beyond the statement.

Keensight Capital has supported LDR’s strong growth by helping the company expand into the US, before its IPO on the Nasdaq in October 2013. Over the past 3 years, the company’s turnover has increased from $91 million in 2012 to $141 million in 2014. When the company was floated it had a valuation of $450 million, but this had increased to more than $1 billion by February 2015.

“We are extremely happy to have helped the company successfully conquer the American market, where LDR very quickly established its footprint. LDR generates over two thirds of its revenues in the United States and is in a very strong position to continue its remarkable growth story going forward,” Pierre Rémy, managing partner at Keensight, said in the statement.

In 2013, Keensight also exited its stake in Octo Telematics in February to Russian group Renova and in 2014 it completed the sale of FircoSoft, a company providing software solutions for filtering banking transactions. The average return multiple across the three investments is 5x.

Keensight spun out from R Capital, a subsidiary of the Rothschild Group, in November 2013. Following the spin-out it acquired R Capital Fund III. Last year, it held a final close for Keensight IV on its hard cap of €250 million, above the initial target of €200 million.