GP restructuring of Spanish fund in partnership with Alter Capital

Headway Capital Partners LLP (“Headway”) is pleased to announce the closing of the latest secondary investment of its advised fund, HIP IV SCSp (“HIP IV”). HIP IV has completed the GP restructuring of a fund managed by Alter Capital, a Seville-based general partner. Headway worked closely with Alter Capital and has established a new vehicle, Alter Cap II SCR, SA (“Alter II”), to purchase the portfolio from Alter Capital’s previous fund and provide follow-on investment to drive further growth in the companies. The lead limited partner of the previous fund was a government-backed entity which supports growth in the Andalusia region and wished to generate liquidity now that the companies have matured since its original investment, whilst ensuring that the companies would have a new partner that could continue to support their growth; Headway was able to provide a solution that addressed the need of every party involved. Specific terms of the transaction were not disclosed.
Sebastian Junoy, founding partner of Headway, commented “We are delighted to partner with Alter Capital, who bring valuable experience in the region, deep knowledge of the portfolio companies and close relationships with their excellent management teams, to purchase this diversified and attractive portfolio. We believe our investment will allow the companies to realize their significant upside potential.”
Angel Gonzalez, Partner of Alter Capital, said “We are very pleased to work with Headway. Their significant expertise in GP restructuring transactions has provided us with a complete solution and we are excited to begin our partnership with them to maximize the potential of our portfolio.”

About Headway: Headway is an independent private equity secondary firm providing a full range of liquidity solutions to investors seeking exits or alternatives for their private equity assets. Headway purchases portfolios of direct private equity investments, minority stakes in single companies and limited partnership positions in private equity funds. Headway also supports general partners in fund restructurings and can provide funds with additional capital for investment through structured secondary transactions. Headway specialises in small to mid-size secondary transactions and invests globally with a focus on Western Europe and North America.

Headway Capital Partners LLP
250 Tottenham Court Road, 2nd Floor, London W1T 7QZ
Phone: +44 20 7518 8888 Fax: +44 20 7900 3160
Email: info@headwaycap.com
Authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered Number OC306661.

About Alter Capital: Alter Capital is a Seville-based general partner which specializes in investing in growth companies in the region and takes active board roles, working closely with the management teams. Alter’s principals have significant experience in investing in Spain and are currently focused on the Andalusia region. The current portfolio consists of investments in the business services, healthcare and dental sectors.

Norrsken Foundation and private equity firm Nordic Capital Investment Advisory AB (“Nordic Capital”) have established a long term strategic partnership. Through the partnership, Nordic Capital will advise Norrsken’s member companies on how to scale their businesses. The partnership is part of Nordic Capital’s ambition to build long term sustainable companies that contribute positively to society.

The aim of the partnership between Norrsken Foundation and Nordic Capital is to support the social entrepreneurs in the Norrsken ecosystem to scale their business, thereby increasing their positive impact on the communities is which they are active. The partnership reinforces Nordic Capital’s commitment to sustainable behaviour.

Norrsken has the ambition to tackle the largest challenges facing humanity with the vision to help create a world optimised for people and the planet. Nordic Capital will work closely with the Norrsken Investment Team, providing advice on investment and operational excellence processes. Nordic Capital will also help Norrsken’s member companies to organise their board work and give advice on how to raise money, find investors and support the building of prospering businesses.

The Norrsken ecosystem consists of companies with sustainable business models focused on solving some of the environmental and social problems the world faces and accelerating positive change. Norrsken engages in early stage businesses by helping them to scale. Companies represented in the ecosystem include, for example: Karma, a company that reduces food waste; Hygglo, which enables users to rent the things they need and rent out the things they own; and Doctrin which provides digital solutions for doctors’ consultations which increase patient involvement and facilitate doctor-patient communication.

“Nordic Capital strives to contribute to society by building market-leading sustainable companies. We are proud to announce a partnership with Norrsken Foundation, an important incubator for small, impact-driven companies. This is a way for us to engage in early stage sustainable companies,” says Kristoffer Melinder, Managing Partner at Nordic Capital.

“Nordic Capital has a world-class record of building and scaling sustainable businesses. It is fantastic that they will now support Norrsken and impact entrepreneurs in their growth journeys. With this partnership, we can positively impact many people and even increase the chances of enabling an impact unicorn – a company positively affecting one billion people”, says Niklas Adalberth, the founder of Norrsken.

Media Contacts:

Nordic Capital
Elin Ljung, Director of Communication and Sustainability,
Tel: +46 8 440 50 50
e-mail: elin.ljung@nordiccapital.com

Norrsken
Funda Sezgi, Chief House Officer,
Tel: +46 72 962 39 29
e-mail:  funda@norrskenfoundation.org

About the Nordic Capital Funds
Nordic Capital is a leading private equity investor in the Nordic region with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a proven track record. Core sectors are Healthcare, Technology & Payments, Financial Services, Industrial Goods & Services and Consumer & Retail, and key regions are the Nordics, Northern Europe, and globally for Healthcare. Since inception in 1989, Nordic Capital has invested EUR 12 billion in 100 investments. The Nordic Capital Funds are based in Jersey and are advised by advisory entities, which are based in Sweden, Denmark, Finland, Norway, Germany and the UK. For further information about Nordic Capital, please visit www.nordiccapital.com.

About Norrsken
Norrsken Foundation is a Swedish non-profit organization founded in 2016 with the purpose of solving some of the world’s most pressing challenges. The Foundation runs the award winning co-working hub Norrsken House, an impact VC fund of €30M that invests in best entrepreneurs solving the biggest challenges in the world and two in-house initiatives, Klarity & 29k. The Foundation was established by Niklas Adalberth, the co-founder of the financial service company Klarna.

ew Mid-Year Report Provides Update on Global Macro Trends

NEW YORK–(BUSINESS WIRE)– KKR today announced the release of its 2018 mid-year outlook piece by Henry McVey, Head of Global Macro and Asset Allocation (GMAA). In New Playbook Required, McVey outlines his perspective on the current investing environment and updates his asset allocation targets.

“From a macro and asset allocation perspective, we feel confident that we are on the cusp of a secular shift where a new playbook for investing may be required,” Henry McVey says. “We now see a significant ‘baton hand-off’ in many of the markets that we cover from monetary policy towards fiscal stimulus — perhaps the most important shift in the last decade. This change in policy leads us to favor investments with greater linkages to the real economy — versus purely financial assets — than in the past.”

McVey continues, “We also continue to see nationalist agendas, particularly as they relate to cross-border trade, supplanting more global ones. Against this backdrop, we now favor more upfront yield in the portfolio, we advocate shortening duration, and we place a premium on low cost liabilities. We also continue to view Asia as the world’s incremental growth engine.”

In his latest report, Henry McVey and his team note the following macroeconomic investment trends that are driving his team’s thinking:

1. Asset allocators and macro players must now invest through the lens of fiscal policy accommodation, not monetary policy accommodation, which has dominated the landscape since the Global Financial Crisis.
2. Nationalist agendas are now aggressively being emphasized over global ones.
3. The structural bid for yielding assets remains outsized, but we are further turning our focus towards hard assets that benefit more from nominal GDP.
4. Buy complexity, sell simplicity. Similar to the late 1990s, we think that the market is giving investors a wonderful opportunity to buy complexity at a discount.
5. We remain bullish on our ‘Deconglomerization’ thesis, and we continue to see a burst of corporate carve-outs across the globe.
6. We are increasingly struck by how fast overall consumer behavior patterns are changing and continue to be bullish on our ‘Experiences Over Things’ thesis.
7. While we continue to favor Emerging Markets over Developed Markets, we acknowledge that our mid-cycle pause thesis is playing out more intensely than we originally envisioned. As such, we continue to advocate more selectivity in the second phase of this secular bull market in Emerging Markets.

Key highlights of Mr. McVey’s asset allocation framework include a substantial underweight to global government bonds, particularly at the long-end of the curve; an increasing overweight to Real Assets with Yield and Growth; the decision to remain equal-weight Public Equities by underweighting Turkey and adding to the U.S.; the addition of Grains (Corn) to the portfolio; and a decrease to Cash.

Links to access this report as well as an archive of Henry McVey’s previous publications follow:

• To read the latest Insights: click here.
• To download a PDF version: click here.
• To download the KKR Insights app for iOS click here, and for Android click here.
• For an archive of previous publications please visit www.KKRinsights.com.

About Henry McVey

Henry H. McVey joined KKR in 2011 and is Head of the Global Macro and Asset Allocation team. Mr. McVey also serves as Chief Investment Officer for the Firm’s Balance Sheet and oversees Firmwide Market Risk at KKR. As part of these roles, he sits on the Firm’s Investment Management & Distribution Committee and the Risk & Operations Committee. Prior to joining KKR, Mr. McVey was a managing director, lead portfolio manager and head of global macro and asset allocation at Morgan Stanley Investment Management (MSIM). Earlier in his career he was a portfolio manager at Fortress Investment Group and chief U.S. investment strategist for Morgan Stanley. While at Morgan Stanley, Mr. McVey was also a member of the asset allocation committee and was the top-ranked asset management and brokerage analyst by Institutional Investor for four consecutive years before becoming the firm’s strategist in January 2004. He earned his B.A. from the University of Virginia and an M.B.A. from the Wharton School of the University of Pennsylvania. Mr. McVey is a member of the TEAK Fellowship Board of Trustees after previously serving as co-chair of the board for five years. Henry is also a member of the Pritzker Foundation Investment Committee, a board member of the University of Virginia Investment Management Company (UVIMCO), a member of the national advisory board for the Jefferson Scholarship at the University of Virginia, and a member of the Council on Foreign Relations Corporate Leader Program.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

The views expressed in the report and summarized herein are the personal views of Henry McVey of KKR and do not necessarily reflect the views of KKR or the strategies and products that KKR offers or invests. This release contains projections or other forward-looking statements, which are based on beliefs, assumptions and expectations that may change as a result of many possible events or factors. If a change occurs, actual results may vary materially from those expressed in the forward-looking statements. All forward-looking statements speak only as of the date such statements are made, and neither KKR nor Mr. McVey assumes any duty to update such statements except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180628005417/en/

KKR
Kristi Huller or Cara Major
212-750-8300
media@kkr.com

Source: KKR

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