Maudie Derks is the Chief Executive Officer of Acture Group (“Acture” or “the Group”). In this interview, she tells us why she started the company, how it has evolved in recent years and the best piece of advice she has ever received.
Anders Petersson is a Managing Partner and leads IK’s Healthcare sector, applying over 20 years of experience at the Firm. In this piece, Anders outlines key industry trends and explores how innovation is driving change in the market.
In 2015, just 12% of the global population was over 60. By 2050, that percentage is expected to soar to 22%, more than two billion people. As the world ages, healthcare costs increase, more than tripling for the elderly compared to their younger counterparts. This puts growing pressure on both government balance sheets and individual incomes, particularly as the complexity of care increases and the range of treatments expands.
Europe is particularly exposed to these trends, with ageing populations and multi-layered healthcare systems. In Germany, for instance, the Healthcare sector accounted for around 8% of GDP throughout the 1980s. But it has risen steadily since then, to almost 13% of GDP by 2022, even as the economy itself more than doubled in size.
As demographic challenges become more pervasive, the need to address them becomes more acute. This is driving developments across the healthcare space, presenting opportunities for well-regarded private equity firms to partner with companies at the forefront of change.
At IK, we have long been involved in this sector, investing in small and mid-cap businesses that foster innovation, enhance efficiency and crucially, help patients to receive better care.
Our focus is on four main subsectors: Med-Tech, Healthcare Services, Healthcare IT and Pharma Services. Within these fields, we focus on specific growth themes, which, we believe, can make a tangible difference with regard to the quality of care on offer and the speed with which that care can be delivered.
Medical technology, or Med Tech, is a substantial market, valued at more than €160 billion in Europe alone. Medical devices feature prominently within this field and many of the larger original equipment manufacturers (“OEMs”) are now outsourcing elements of design and production to contract development and manufacturing organisations, to the benefit of the industry, healthcare providers and end users. We have made several successful investments in this space over recent years, from French implant specialist Marle to German group Klingel Medical Group, which makes high-precision components for implants, endoscopy and robotic surgery.
Both businesses grew significantly during our ownership and we are now pursuing similar value creation paths with current investments. These include Belgium-based Plastiflex, a supplier of high-end customised tube systems to ease respiratory issues and LAP Group in Germany, a leading provider of innovative measurement and projection systems used to enhance radiotherapy care and outcomes.
Healthcare IT is a substantial beneficiary of the outsourcing trend as well. Under pressure on many fronts, including cost inflation and staff shortages, providers are searching for ways to improve their offering while keeping costs under control. High-quality outsourcers can help on both fronts: our 2023 investment in UK-based Medica is a case in point.
With a network of more than 700 specialists, Medica offers teleradiology and imaging services to more than 200 clients worldwide; from hospitals to pharma, biotechnology and medical device groups. A leader in its space, Medica uses technology to drive efficiency across the industries it serves.
That combination of technological proficiency, outsourcing expertise and focused efficiency is also present within the Pharma Services subsector. Big pharma and biotechnology groups alike are reaping the benefits of contracting out elements of research, manufacturing and in vitro diagnostics to specialist operators. We believe that this is an area offering strong and sustained growth opportunities, as pharma groups face increasing calls to cut costs and accelerate drug development.
To that end, we invested in Swedish biotechnology firm Mabtech in 2019. A specialist in immune monitoring, Mabtech helps its clients to make advances in vaccine, cell and gene therapies. At the time of exit earlier this year, the group had more than doubled sales and EBITDA, broadened its product and service offering and expanded into new markets, including the US and China.
Looking ahead, we see continued opportunities across our chosen subsectors and themes. Ageing populations, stretched budgets and a range of complex medical conditions are driving the need to find innovative solutions that improve productivity, increase quality and drive down costs.
The effective use of data is likely to be a critical driver here. From enhanced processing of patient records, to improved patient monitoring, to the acceleration of drug development, proficient harnessing of data can make a measurable difference to care and costs. Traditionally, the Healthcare sector has been slow to adopt new ideas and ways of working. But times are changing, needs are growing and professionals across the market are recognising that innovation and productivity are key to future success.
With three decades of experience and a deep understanding of industry trends, we believe that this is one of the most exciting times to be investing in the Healthcare space. Leveraging our operational expertise and sector-wide network, we will continue to work proactively across the industry, identifying prospects early, building connections and seeking out value-creation opportunities for all our stakeholders.
IK Partners (“IK”) is pleased to announce that the IK Small Cap II (“IK SC II”) Fund has successfully closed its divestment of Yellow Hive (“the Company”), to a newly formed fund vehicle IK Strategic Opportunities I (“IK SO I”) Fund. Representing IK’s first continuation fund, the IK SO I Fund will be managed by IK and the transaction was led by TPG GP Solutions, AlpInvest and Pantheon. This transaction will allow IK, as well as the Yellow Hive founders and management team, to continue supporting the business over its next ownership cycle, with the benefit of fresh capital to execute on an attractive pipeline of opportunities.
Founded in 2011, Yellow Hive (formerly You Sure) is a leading Dutch insurance distribution platform with active broker and managing general agent capabilities, serving both small and medium-sized enterprises and consumers. Since IK’s investment in November 2020, the Company has grown considerably, driven by strong organic growth and a track record of accretive M&A. Today, Yellow Hive covers all common and select specialist risks, with access to both the Dutch and International insurance markets.
The sale marks another successful exit from the IK SC II Fund, its ninth realisation and provides investors with liquidity at an attractive return or the option to roll into the new vehicle to participate in Yellow Hive’s future growth.
Following a competitive auction process, IK SO I Fund closed at €505 million of new capital commitments to fund the purchase of Yellow Hive from IK SC II Fund, including follow-on capital to support the continued growth of the Company. TPG GP Solutions, AlpInvest and Pantheon acted as co-lead investors for the transaction, alongside a number of existing IK SC II Fund investors who will also invest in IK SO I Fund.
Ger Knikman, CEO of Yellow Hive, said: “IK has been a great partner over the last few years, supporting us in the successful execution of our ambitious strategy. Yellow Hive’s integrated platform has a strong tailwind and we wanted to continue to benefit from further consolidation of the market. The new commitment from IK SO I Fund will allow us to further strengthen the business both in the Netherlands and outside”.
Sander van Vreumingen, Partner at IK and Advisor to the IK SC II and IK SO I funds, said: “Yellow Hive has grown substantially over the past few years. This has been achieved both organically and through the execution of a selective M&A strategy, transforming the Company into one of the top 10 insurance distribution platforms in the Netherlands. By divesting the Company from the IK SC II Fund and reinvesting from the newly formed IK SO I Fund, the team at IK will be able to offer further support to accomplish the full potential plan, which includes expanding internationally and continuing to collaborate with a successful and ambitious team. During the exit process, we experienced strong demand for IK SO I Fund which underpins the quality of the Company.”
For further questions, please contact:
IK Partners
Vidya Verlkumar
Phone: +44 (0) 7787 558 193
vidya.verlkumar@ikpartners.com
A-SAFE (“the Company”) and IK Partners (“IK”) are pleased to announce that the IK Partnership II (“IK PF II”) Fund has acquired a minority stake in the Company. A-SAFE is a global leader in the design, manufacture and distribution of industrial polymer safety barrier systems. IK acquired its stake from the Smith family who remain significantly invested. This is the final investment from the IK PF II Fund, which is now fully committed. Financial terms of the transaction are not disclosed.
Founded in 1984 and headquartered in Yorkshire, United Kingdom, A-SAFE produces a diverse range of polymer-based products which are deployed in factories and warehouses across the world to safeguard both people and assets from collisions with vehicles such as forklifts. The Company has over 700 employees, with over 80 individuals committed to research and development.
As a founder owned and managed business, A-SAFE has achieved significant organic growth and today, serves more than 6,000 customers in over 50 countries. Its diversified customer base comprises some of the world’s largest businesses, including Coca-Cola, UPS and Amazon. With the aim of further strengthening its leadership position in the industrial polymer space globally, the Company has decided to form a partnership with IK.
With the support of IK and its dedicated Partnership Fund, which focuses on minority investments in established fast-growing entrepreneurial businesses, A-SAFE is poised for further growth. Led by James and Luke Smith, the management team is delighted to partner with IK. Together, they aim to unlock growth opportunities and drive innovation, further redefining industry standards.
James and Luke Smith, Co-CEOs at A-SAFE, stated: “We are pleased to be partnering with IK. This is an exciting opportunity for us as we look to fortify our leading position in the market, while simultaneously expanding our global reach, enhancing our product offering and driving greater value for our customers. With IK’s expertise and resources, we are confident that the Company will go from strength-to-strength and we look forward to working with Thomas and his team.”
Thomas Grob, Partner at IK and Advisor to the IK Partnership II Fund, added: “A-SAFE’s expansion into new markets and product segments, alongside its commitment to innovation, has firmly positioned it as an industry leader in workplace safety, protection and efficiency systems. The Company’s ability to anticipate market needs, coupled with its relentless pursuit of product excellence, has garnered our utmost confidence in the management team and its ability to drive positive action. We look forward to working with James, Luke and their team over the next few years.”
For further questions, please contact:
IK Partners
Vidya Verlkumar
Phone: +44 (0) 7787 558 193
vidya.verlkumar@ikpartners.com
IK Partners (“IK”) is pleased to announce that the IK VIII Fund has signed an agreement to sell its stake in Eres Group (“Eres” or “the Group”), a leading French financial technology player in the employee profit-sharing and retirement scheme markets, to Eurazeo. Financial terms of the transaction are not disclosed.
Established in 2005 and headquartered in Paris, Eres is a leading French independent player in the advisory, structuring, asset management and distribution of employee profit sharing plans (PEE, PERECO), retirement schemes (PER) and employee shareholding plans. The Group distributes its products through a network of more than 6,600 distributors (wealth management advisors, insurance brokers and accountants) to address the needs of both mid-sized and large French companies.
With the support of IK since 2019, the management team has: improved operational efficiency through strategic headcount growth; strengthened its commercial team for better distribution of Eres products through its extensive network; achieved inorganic growth with a series of successful acquisitions; and digitised its product offering. Eres has grown its assets under management to €6.7 billion, at a rate of 23% per annum.
Mathieu Chauvin, CEO of Eres, said: “The Eurazeo DNA, focused on culture, agility and growth ambitions, resonates strongly with Eres values, making Eurazeo a clear partner of choice for our next stage of growth. We are excited to partner with them and leverage their deep sector expertise and transformational growth experience. We also want to thank the team at IK for their outstanding support over the last few years.”
Rémi Buttiaux, Managing Partner at IK Partners and Advisor to the IK VIII Fund, said: ““Eres has almost tripled in size during our five-year partnership with them. Through operational improvement initiatives, significant investment in its people, digitalisation of the product offering and add-on acquisitions, the Group has cemented its position as a leading player in the French fintech market. We wish Mathieu, his team and their new owners every success in the next stage of the Group’s development.” Completion of the transaction is subject to legal and regulatory approvals.
For further questions, please contact:
IK Partners
Vidya Verlkumar
Phone: +44 (0) 7787 558 193
vidya.verlkumar@ikpartners.com
