BlackRock has announced it will acquire full control of Kreos Capital, a provider of growth and venture debt financing to companies in the technology and healthcare industries.
The acquisition of Kreos will advance BlackRock’s ambitions to provide clients with a broad range of private market investment products and solutions.
It brings an experienced investment team into BlackRock’s global credit business with a long-term track record, while opening additional private debt capabilities for BlackRock’s clients.
Stephan Caron, head of EMEA private debt at BlackRock, said: “Private debt investing has become an increasingly important component of investors’ portfolios. BlackRock’s recent Global Private Market Survey found that more than half of respondents plan to increase their private credit holdings in 2023.
“Current market dynamics have made private credit an attractive asset class as investors focus on its income generation, low volatility, portfolio diversification and its low defaults versus public markets.
“The addition of this high-quality team, with an excellent track record across multiple market cycles, creates an opportunity for BlackRock to offer a larger proportion of the risk/return spectrum to investors globally.”
Kreos is based in London and its 45-strong team, which will join BlackRock as part of the transaction, has demonstrated strong performance over a 24-year track record.