Kreos breaks €1bn mark for venture debt fund

The firm’s seventh debt fund is thought to have secured more than €1bn of commitments with a final close expected later this year.

European venture debt investor Kreos Capital is thought to have secured more than €1 billion for its latest fund, according to sources close to the firm.

According to PDI’s database, Kreos Capital VII launched in December 2021 with a €1.2 billion target.

The source said the firm is eyeing a final close in September this year and is expecting to beat its target.

LPs are thought to include pension funds, insurers, government agencies and endowments and sees investments for the first time from institutions based in Australia, the Gulf, Italy, Spain, Ireland and Japan.

Kreos specialises in backing growth companies from early stage to later stage growth. Typically firms have underlying profitability but are trading profits for growth.

It typically invests at low LTVs with senior security and as a sole lender alongside equity sponsors. Over the past 12 years the firm has seen a loss rate of less than 1 percent cash-on-cash and has an average recovery rate in default situations of approximately 90 percent.

Kreos Capital declined to comment.