Kapnative Newsletter Edition 40
KKR Closes Ascendant Fund at $4.6bn
Global private equity firm KKR has announced the final close of its KKR Ascendant Fund SCSP (Ascendant) with $4.6 billion in total capital commitments. Launched in 2022, Ascendant is KKR’s first investment vehicle dedicated solely to middle-market businesses in North America.
The fund focuses on established companies across seven key industry sectors: Consumer, Financial Services, Health Care, Industrials, Media, Software, and Tech-Enabled Services. Ascendant is also notable for its commitment to implementing employee ownership programs at every majority-owned company it invests in, a first for KKR in the middle-market space.
To date, Ascendant has made investments in six North American companies, including Alchemer, 123Dentist, Industrial Physics, Potter Global Technologies, mdf commerce, and Marmic Fire & Safety. The fund was oversubscribed, closing at its hard cap with strong support from a wide range of global investors, including public pensions, family offices, insurance companies, and other institutional investors.?
The closing marks a significant step in KKR's expansion of its Americas Private Equity platform.
Apollo Eyes $5bn Investment in Intel Amid Stock Struggles
Apollo Global Management, a US-based private investment firm, has offered to make an equity-like investment of up to $5 billion in semiconductor giant Intel, according to a report by Bloomberg News. This potential investment comes during a challenging period for Intel, which has seen its stock value drop by nearly 60% this year, following its past position as the world’s most valuable chipmaker.
Intel executives are reportedly reviewing the offer from Apollo, but talks are still in the early stages, with no final decision made. The proposed investment amount may change as discussions continue, and there is no guarantee that the deal will move forward.?
Neither Intel nor Apollo have commented on the ongoing discussions.?
Earlier this year, Apollo made headlines by securing a 49% equity stake in a joint venture associated with Intel’s new manufacturing facility in Ireland, a deal valued at $11 billion. This latest potential investment reflects Apollo’s growing interest in the semiconductor space.
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Sanofi Attracts $17bn Private Equity Bids for Consumer Health Unit
Sanofi has reportedly received two takeover bids from private equity firms PAI Partners and Clayton Dubilier & Rice (CD&R) for its consumer health division, potentially valuing the unit at approximately €15bn ($16.74bn), according to Bloomberg News.
The French pharmaceutical giant is expected to make a decision soon after reviewing the offers. However, if the bids do not meet Sanofi’s valuation expectations, the company may consider spinning off the business as an alternative, sources familiar with the matter revealed.
PAI Partners is reportedly seeking backing from British Columbia Investment Management Corp, and has been in discussions to involve Abu Dhabi Investment Authority and Singapore's sovereign wealth fund GIC Pte in the consortium.
In October 2023, Sanofi announced it was exploring several options for its consumer healthcare division, with a target to finalize a transaction by the fourth quarter of 2024. A Sanofi spokesperson confirmed that no final decision has been made, and the company will continue to evaluate the best strategy for the division.
The move mirrors recent trends in the pharmaceutical industry, as companies streamline their operations by divesting consumer health businesses. Johnson & Johnson spun off its Kenvue unit in May 2023, while GSK and Pfizer separated their consumer health divisions in 2022.
Both private equity firms have declined to comment on the ongoing discussions.