KD Pharma Group – Top-Up Single-Asset Fund

capiton has successfully closed a new top-up single-asset fund for its fast-growing portfolio company KD Pharma Group („KD Pharma“). This top-up fund will provide KD Pharma with the equity financing for a number of additional strategic investments, in particular add-on acquisitions as well as organic growth initiatives to transfer KD Pharma‘s unique technology and service portfolio from its core omega-3 market to adjacent market segments, including the medical cannabinoid market and small molecule synthesis.

The transaction was highly oversubscribed by its existing investors, enabling capiton to raise the top-up fund in just three months.

About KD Pharma

KD Pharma is a worldwide leading CDMO and technology leader for the purification of lipids. In particular, KD Pharma focuses on small molecule synthesis and manufacturing highly purified omega-3 fatty acids for pharmaceutical and nutraceutical products.

Since its acquisition in 2013 by capiton IV, a fund managed by capiton, KD Pharma has grown from a single-digit revenue business to one of the industry’s largest players with total sales reaching c. EUR 200m to date. Recent investments include the acquisition of manufacturing assets of Rohner AG as well as manufacturing assets and in-licensing of a novel extraction method from Herbolea Biotech.

In 2019 capiton initiated a GP-led single-asset secondary transaction to provide KD Pharma with the necessary investment horizon and follow-on capital to finance the significant future growth potential expected. Following the successful closing of this GP-led secondary, the company has been held in a single-asset continuation fund structure managed by capiton.

Advisors

capiton was supported in this transaction by CMS Hasche Sigle (asset-level legal advice), POELLATH (fund-level legal advice), EY (tax, structuring) and BMH Bräutigam (notary). The investors were supported by Debevoise & Plimpton (legal advice).

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