IK Partners

IK Partners, a European private equity leader

Website

Capital held by Wendel

%¹

Amount invested by Wendel

€383

m²

Year of acquisition

2024

Founded in 1989, IK is one of Europe’s leading private equity firms, with teams across seven of Northern European countries focusing on the mid-market segment. The Company invests in the Business Services, Healthcare, Consumer and Industrials sectors in Benelux, DACH (Germany, Austria, Switzerland), France, Nordics and the UK.

IK manages €13.1⁽³⁾ billion of private assets on behalf of third-party investors and since inception, has invested in over 189 companies.

(1) As of May 15, 2024.
(2) Amount of equity invested by Wendel up to 2027 (1st tranche of the transaction) for 51% of the capital held at closing. See structure of the operation below.
(3) As of June 30, 2024 including co-invest direct investments from significant LPs, and from third-party co-control co-investment.

Key figures

€13.1 bn

assets under management⁽¹⁾

189

portfolio companies since its creation

offices in Europe

200

employees

(1) As of June 30, 2024 including co-invest direct investments from significant LPs, and from third-party co-control co-investment.

Why did we invest in IK Partners?

In early 2023‚ Wendel embarked upon a strategic shift by announcing its intention to develop a new third-party private asset management business‚ alongside its historical principal investments business.

By creating a dedicated platform‚ Wendel aims to diversify its revenue streams‚ increasing the generation of regular and reliable cash flows. This will enhance Wendel’s attractiveness as an investor and as a listed company, resulting in a greater dividend payout capacity for its shareholders. This diversification of revenue streams will also involve investments by Wendel in the funds raised by the entities on its platform

With the acquisition of IK Partners, Wendel is laying the foundations for its new platform. The aim is to reach €150 million in FRE by 2027 through organic business growth, accompanied by acquisitions in new asset classes. Wendel’s ultimate goal is to become a large multi-asset platform by bringing in new funds specializing in asset classes including infrastructure and private debt.

Key milestones of the investment

2023

2024

2023

October 17, 2023

Wendel launches its expansion in third-party private asset management and enters into exclusive negotiations with IK Partners

October 17, 2023

Analysts’ presentation as of July 1st, 2024

2024

May 14, 2024

Wendel completes the acquisition of a 51% stake in IK Partners, a major step in the deployment of its strategic expansion in third-party private asset management

Outlook for development

IK Partners supports high-potential companies, working closely with management teams to build strong, well-positioned businesses with outstanding long-term prospects. The company’s investment teams have an excellent track record, both in terms of performance, with an average gross IRR of around 26%⁽¹⁾ on exit, and in terms of their ability to return capital to investors (DPI: Distributed to Paid-In Capital), 2023 being a record year.

In 2024, IK Partners’ activities are expected to generate around €150 million in management fees and some €60 million in pre-tax Fee Related Earnings (FRE).

This transaction will align strategic interests of all stakeholders, over the long term: it is a strategic partnership in which Wendel will participate in the Group’s strategic decisions and IK Partners’ teams – who remain committed for the long term – will continue to operate autonomously in existing and new markets under the same brand. A key feature of the envisaged partnership will be the commitment of significant capital by Wendel to support IK’s present and future platform funds as well as the development of new strategies defined in agreement with IK. The envisaged transaction would lead to the full acquisition of IK over time.

As part of the initial transaction, Wendel would invest €383 million, or 12.5 times the estimated 2024 pre-tax Fee Related Earnings (“FRE”)⁽²⁾, to acquire 51% of IK Partners’ shares and rights to 20% of the carried interest generated on all future funds raised by IK Partners.

The €383 million will be paid by Wendel in two stages:
– €255 million on May 14, 2024, at the time of closing;
– €128 million on May 14, 2027, subject to certain conditions.

The remaining 49% of IK’s capital will be acquired by Wendel in subsequent transactions, which will take place between 2029 and 2032⁽³⁾, in accordance with the announcements made on October 17, 2023.

(1) Gross IRR. Across fully exited companies in the IK VII and IK VIII funds.
(2) Fee-related earnings: profits generated by recurring fee income (mainly management fees). They exclude the more volatile, performance-related revenues, such as performance fees and carried interest.
(3) And no later than 2034 if the deferral option is exercised.

Top management

of IK Partners

Christopher Masek

Chief Executive Officer

#Edito

19 October 2023

With the acquisition of IK Partners, Wendel initiates its development strategy in third-party asset management

All news

– Press releases

7 October 2024

Bluegem Capital Partners and AREV to acquire Pinard Group from IK Partners

All press releases

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