Beechbrook Capital (“Beechbrook”), a leading lower-mid-market debt manager in the UK and Europe, has completed an investment in the LuxVet Group (“LuxVet”), the largest platform of veterinary clinics in Poland, from its Private Debt IV fund, providing senior debt to co-finance the expansion of its platform via acquisitions of veterinary clinics.
The LuxVet Group, which has already secured capital from funds managed by Oaktree Capital Management, L.P. (“Oaktree”), Cornerstone Investment Management and INVL Baltic Sea Growth Fund, is Beechbrook Capital’s first investment in Poland as part of its continental Europe-focused investment strategy.
Headquartered in Warsaw, the LuxVet Group is consolidating and integrating the fragmented veterinary industry in Poland, which has the largest pet population in Europe.
In two years of operation, the Group has grown to become the largest platform of veterinary clinics in Poland and is also expanding into surrounding regions.
LuxVet provides strategic support for the clinics joining the platform, contributing to their further growth and development. This includes investments in advanced medical equipment, providing training and development paths for staff, and providing management and administrative support. At the same time, the Group is building a state-of-the-art veterinary referral hospital in Warsaw, which will be an important link in the reference network and a natural destination for patients requiring advanced specialist care – ranging from emergency and critical care to orthopaedics, neurology, dentistry, diagnostic imaging, and more.
Overall, LuxVet is creating a platform for top quality veterinary services in Poland and raising the standards of work in the veterinary sector.
Beechbrook Capital’s investment will be used to support further acquisitions and accelerate LuxVet’s expansion in Poland and Central and Eastern Europe.
David Merriman, Head of European Private Debt at Beechbrook, commented: “We are delighted to partner with Oaktree and Cornerstone along with the excellent LuxVet management team in their ambitious programme of growth and enhancement in the Polish veterinary sector. We have had an excellent experience working with all parties on this transaction and look forward to the development of the business in the coming months and years. This transaction marks our first investment in Poland, a market in which we are seeing many interesting opportunities in the lower mid-market.”
Piotr Zajączkowski, CEO of the LuxVet Group, commented: “Our ambition is to a create strong, effective and friendly pet healthcare provider by bringing individual practices together into a strong group, provide good working and development conditions for staff and invest in innovative solutions. I am delighted that Beechbrook will support us in these efforts.”
Karim Khairallah, Managing Director and Co-Portfolio Manager at Oaktree, added: “We are pleased to partner with Beechbrook as we continue to support LuxVet in its mission to raise the bar of quality veterinary services and standards of work in the veterinary sector. This new financing will play a key role in enhancing LuxVet’s growth as it continues its European expansion.”
Tomasz Jemielity, Vice President at Cornerstone Investment Management, said: “We are looking forward to this collaborative journey with Beechbrook, and welcoming a new partner who shares confidence in Luxvet, to drive positive change in the industry. This alliance not only underscores our joint commitment to the welfare of all beloved animal companions but also represents a strategic investment in the future of pet healthcare.”
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About Beechbrook Capital
Beechbrook Capital, a specialist direct lender founded in 2008, invests in the lower-mid market/SMEs across a range of industries in the UK and Europe through two separate senior debt strategies. To date, it has raised more than €1bn through eight funds and has invested in 95+ companies in the UK and Europe.
Beechbrook’s PDIV Private Debt fund provides senior finance to support European private equity-backed owned companies with a typical enterprise value of €10 million to €100 million, investing between €5m and €20m per transaction. Beechbrook has a separate, predominantly sponsorless, SME fund in the UK.
The Beechbrook team consists of 15 plus investment professionals, plus a portfolio management team, an investor Relations team investment committees, located in London, Frankfurt, Cork, Manchester, Birmingham and Leeds.
For additional information, please visit Beechbrook Capital’s website at www.beechbrookcapital.com
About LuxVet Group
LuxVet Group has been consolidating and developing the veterinary sector in Central and Eastern Europe through a flexible partnership business model based on respect for the past achievements of the entities being integrated. By working with doctors and owners of leading animal health institutions and building its first referral hospital for small animals in Poland, the LuxVet Group develops top quality veterinarian services and raises the standards of work in the veterinary sector across Poland. For additional information, please visit LuxVet’s Group website at www.grupaluxvet.pl
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $189 billion in assets under management as of December 31, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,200 employees and offices in 22 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com
About Cornerstone Investment Management
Founded by Przemysław Krych in 2001, manages private equity investments with assets valued at 10 billion EUR. With a team of experienced experts, the company delivers higher returns in areas such as corporate private equity, private debt, and private equity real estate, utilizing deep knowledge, relationships, and team skills to unlock situations and create exceptional returns for investors.
The company’s portfolio includes investments in various sectors, including real estate, IT outsourcing, biodegradable hygiene products, cable operators, renewable energy, healthcare, the food sector, green metals, animal care, and financial services. Spravia, Elemental, Ecowipes, Okechamp/Lutece, Luxmed, Avenga, LuxVet Group, ProService Finteco – these are examples illustrating the diversity of industries and sectors in which Cornerstone Investment Management has invested. For additional information, please visit Cornerstone’s website at www.cornerstone-im.com
About INVL Baltic Sea Growth Fund
With a size of EUR 165 million, the INVL Baltic Sea Growth Fund the leading equity fund in the Baltics. The European Investment Fund (EIF) is its anchor investor.
The EIF, which is a part of the European Investment Bank, has committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or the Junker Plan) whilst also allocating resources from the Baltic Innovation Fund, a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. The initiative aims to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics.
The fund is focused on the Baltic countries and neighbouring regions including Poland, the Nordics, and Central Europe. After this investment, INVL Baltic Sea Growth Fund has formed a diversified portfolio of nine companies. The fund has invested in companies to date, focusing on sectors including food processing, healthcare, medical rehabilitation, civil engineering, plastic recycling, environmental resource management, veterinary services, and the manufacturing of cosmetics and hygiene products.
The fund is managed by INVL Asset Management, the leading alternative asset manager in the Baltic States, which is part of the Invalda INVL Group, operating for more than 30 years. The group’s companies manage more than EUR 1 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. The group’s scope of activities also includes family office services in Lithuania and Latvia, management of pension funds in Latvia, and investments in global third-party funds.
For additional information, please visit INVL Baltic Sea Growth Fund’s website at www.bsgf.invl.com
About Syntaxis Capital
Syntaxis Capital is a private debt investor dedicated to providing long term capital to fast growing medium-sized companies in Central Europe, with a particular focus on Poland. With backing from institutional Western European investors, including the European Bank for Reconstruction and Development and the European Investment Fund, Syntaxis focuses on providing flexible credit solutions to the mid- to lower mid-market, where access to suitable long-term finance is increasingly difficult to obtain. The core of Syntaxis’ team has worked together for the past 18 years, and its track record in Europe dates back 27 years.
For additional information, please visit Syntaxis Capital’s website at www.syntaxis-capital.com