Kreos Capital, a European venture debt provider, had added a third partner to its London office with the hire of Luca Colciago, as it looks to continue its recent rapid pace of investment.
Colciago, who has seven years experience in the venture debt area, joins Kreos from alternative asset manager Noble, where he was a director of the Noble Venture Finance division responsible for arranging venture debt across Europe. Prior to that he had worked at another competitor, US-based GATX Capital, as a venture finance and corporate finance associate. He has also worked in currency trading.
Colciago becomes the third partner based in Kreos’ London office, alongside Ross Ahlgren and Maurizio PetitBon. There are also two general partners located outside the UK – Raoul Stein is based in Israel, while Mårten Vading operates in the Nordic region.
PetitBon told PEO: “Luca is unique among the venture debt professionals outside of the Kreos team, in that he has in-depth venture debt experience gained by sourcing, negotiating and executing deals across the whole of Europe”.
Kreos, which was formerly known as European Venture Partners, closed its third fund in April with €200 million of commitments and said last month that it had already deployed about half of the fund in the last five months. However, it will be not be heading back on the fundraising trail just yet – since the money comes back to the firm through repayments, the fund can effectively be recycled indefinitely.
Kreos provides debt facilities to venture-backed companies – the kind of businesses who would not be considered creditworthy enough to raise money from standard lenders. This loan or lease will typically be more expensive than normal bank debt, to reflect the increased risk, but it allows the companies to gain rapid access to additional financing without further dilution of their equity.
Kreos works with many of Europe’s leading venture firms, who can benefit from the opportunity to boost their return on equity through leverage. It has backed a number of recent venture success stories, including software company Codemasters, internet retailer Figleaves and online DVD rental business Lovefilm.