Kreos holds first close for latest debt fund

London-headquartered Kreos Capital, which has promoted chief operating officer Simon Hirtzel to general partner, is targeting €200m for its latest ‘growth debt’ fund.

Kreos Capital, which provides debt financing to European and Israeli businesses, has held a first close on €120 million for its fourth growth debt fund.

The firm structures debt facilities as flexible, no-covenant, short-term loans with equity and exit upside, which it says offer little dilution for management or equity sponsors. It also said its fund structures generate a high-yield cash return with limited volatility.

Kreos Capital IV has a target of €200 million and is expected to close later this year, the firm said. The firm said a number of existing limited partners had re-upped for this fundraising. Its previous fund, the 2007-vintage Kreos Capital III, raised €150 million.

Mårten Vading, co-founder and general partner of Kreos, said in a statement: “With Kreos Capital IV, we have diversified our investor base further, attracting top-tier global institutional capital from insurance companies, endowments, supranational funds, pension funds, funds-of-funds, and family offices. Kreos’s team has been together for thirteen years providing very stable fund management as well as consistent and compelling risk-adjusted and absolute returns. Kreos has a strong track record generating continuous cash distributions every quarter, and limited downside and volatility even in challenging economic environments.”

Ross Ahlgren, co-founder and general partner of Kreos, added: “From the initial meetings through their profitable exits, Kreos works very closely with our entrepreneurs and top-tier equity sponsors to support the growth of our portfolio companies. We take pride in being a stable, long-term and flexible partner that adds value at all levels and finds solutions no matter what the market conditions.”

Joining Ahlgren, Vading and Luca Colciago as a general partner is the firm’s chief operating officer Simon Hirtzel, whose promotion to the partnership was announced in tandem with the first close.