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

PRESS RELEASE - OCTOBER 17, 2023

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

Six months after presenting its new strategic orientations, Wendel announces today that it has entered into exclusive negotiations with a view to acquiring a controlling stake in IK Partners (“IK” or “the Company”) from its partners who would also reinvest a portion of their proceeds in future IK funds as part of the envisaged transaction. IK Partners is a leading European private equity (“PE”) firm specializing in European mid-market buy-outs. For Wendel, this transaction will constitute the foundation its new third-party asset management business, which is aimed at generating additional sources of recurring income and intrinsic value creation.

Subject to consultation with the relevant works council and satisfaction and finalization of negotiations as well as the conditions for completion (including regulatory approvals), the acquisition of a controlling stake in IK is expected to be completed in the first half of 2024.

A European private equity leader

Founded in 1989, IK is one of Europe's most recognized PE firms, with teams across a number 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, France, Nordics and the UK.

IK manages 11.8¹ billion euros of private assets on behalf of third-party investors and since inception, has invested in over 180 companies.

IK 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, having collectively achieved an average gross IRR of around 26%² with a tradition of generating consistently strong DPI to its investors.
By 2024, IK Partners’ activities are expected to generate around 150 million euros in management fees and around 60 million euros in pre-tax Fee Related Earnings (FRE).

A transaction aligning strategic interests of all stakeholders, over the long-term

The proposed transaction is a strategic partnership in which IK Partners’ teams — who remain committed for the long term — will continue to operate autonomously in the same markets and strategies, 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. The envisaged transaction would lead to the full acquisition of IK over time.