BlackRock acquires private debt manager Kreos Capital in credit platform boost

BlackRock is set to acquire full control of London-based private debt manager Kreos Capital, which the investment giant said will accelerate the growth of its credit platform. 

The acquisition of the firm, which specialises in growth and venture debt lending strategies, "unlocks additional private debt capabilities" for BlackRock's clients to access a larger proportion of the risk/return spectrum, the company said.

Kreos Capital has committed over €5.2bn across more than 750 transactions in 19 countries since its inception in 1998. It has provided financing to more than 550 pan-European and Israeli high-growth companies in the technology and healthcare sectors. 

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As part of the transaction, which is set to close in Q3 2023, subject to regulatory approval, and Kreos' 45-person team will be integrated into BlackRock's European Private Debt platform, while its current leadership will remain responsible for executing the firm's investment strategies.

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. 

"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."

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Mårten Vading, co-founder and general partner at Kreos Capital, 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."

Vading said the transaction enables the firm to leverage BlackRock's scale, resources, and technology to create a "holistic product offering that serves innovative companies globally".