Paving the way
With the festive season and the year-end just a few weeks away, this is a good time to look back over some of the highlights of 2018. For Kartesia, it was a year that brought industry recognition of our decisive approach with a lower mid-market focus, which has driven the alpha delivered to our investors over four fund generations. In fact, KCO III won not one but two Best Direct Lending Fund awards in 2018, beating 30 peers managed by some of Europe’s top managers.
Since we first embarked on this adventure in 2008, we have set ourselves apart from our established rivals through a combination of innovation and investment convictions, backed by rock-solid due diligence and a fundamental approach to value creation. One of our first moves was to enter the secondary market. Then, six years ago, we launched Kartesia by bringing together secondary, primary and CLO investments within a single fund. This proved to be a winning strategy. It has enabled KCO IV to be 50% invested in sponsorless companies, i.e. firms without a majority private equity sponsor, compared with just 20% for the rest of the direct lending market.
We will not be resting on our laurels, however. The competitive intensity in our markets is heating up with the arrival of new entrants and an influx of liquidity, but we are confident that the Kartesia platform can capture more opportunities, while at the same time taking an even more selective approach. As we pave the way forward, we will aim to source more and to source smarter in every area, from hiring to fund-raising and with our geographical expansion.
In this latest issue of Insight Kartesia, you can learn how, by leveraging our strong relationship with management and the JB Capital team, we backed the expansion of Vitaldent, a dental care leader in Spain and Italy. We invite you behind the scenes of an exclusive deal with KKR, which fits with our determination to build long-term partnerships with top industry players. And of course, we bring you up to speed on the latest Team Kartesia news.