capiton closes single-asset secondary transaction of KD Pharma
Berlin — Since its acquisition by capiton IV Fonds in 2013, KD Pharma has grown from a small company with single-digit revenues to one of the largest players in the industry. KD Pharma Group is a leading global manufacturer of highly concentrated omega‑3 fatty acids used as an ingredient in pharmaceuticals and dietary supplements. — capiton initiated a GP-led single-asset secondary transaction to secure a longer holding period and further growth capital for its portfolio company KD Pharma to finance the expected significant growth potential. The transaction was heavily oversubscribed and capiton successfully completed the fundraising for its new single-asset fund.
In the context of a competitive bidding process, the transaction gives the existing investors of the capiton IV fund the opportunity to either sell their existing stake in KD Pharma Group (in whole or in part) or to continue it via a newly established continuation fund and to participate in the high expected value enhancement potential. The transaction also offers new investors the opportunity to participate in a very attractive, fast-growing portfolio company. Pantheon and Aberdeen Standard Investments join other renowned institutional investors as new principal investors.
capiton will continue to manage KD Pharma as General Partner under the new fund structure after closing of the transaction. capiton plans to expand its business both organically, through further internationalization and expansion of the product portfolio on the basis of its current market leadership, and through targeted acquisitions. To this end, new debt financing was secured in parallel with the se- condary transaction.
Advisors to capiton: PJT Park Hill (secondary advice), CMS Hasche Sigle, P+P Pöllath + Partners, Stephenson Harwood (legal), EY (finance, tax, structure), Roland Berger (commercial) and Duff & Phelps (fairness opinion).
The new investors were advised by Debevoise & Plimpton, Hogan Lovells (legal) and Euclid Transactional (S&I). The transaction was notarized at BMH Bräutigam.