Blackrock snaps up London-based venture debt firm Kreos Capital
Blackrock has snapped up London-based venture debt specialist Kreos Capital today in a deal which extends the US behemoth’s reach into the credit asset management market.
In a statement today, the world’s biggest asset manager said the deal would see it acquire full control of Kreos and its clients would now have access to the swelling venture debt space via the firm.
London-headquartered Kreos specialises in growth and venture debt financing for tech and healthcare companies, with the firm “complement[ing] Blackrock’s Global Credit business with a seasoned investment team and successful long-term track record”, Blackrock said.
“The Kreos team has built a world class investment process and delivered for clients through multiple cycles,”James Keenan, CIO and global head of Blackrock Private Credit, said.
“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.”
Stephan Caron, Blackrock’s EMEA head of private debt added that “growth and venture lending will figure prominently in the expansion of the global direct lending opportunity” for Blackrock.
Since being founded in 1998, Kreos has committed more than €5.2bn across more than 750 deals in 19 countries, to more than 550 pan-European and Israeli high-growth companies in the tech and healthcare sectors.
The firm has invested across fintech, software, cybersecurity, semiconductors and AI, as well as backing areas like drug and treatment development and medical products in the healthcare space.
The move comes as venture and growth debt becomes a more important part of the financing arsenal for growth firms amid a slowdown in traditional venture capital.