2017 – Page 3

LIVINGBRIDGE CALLS ON BUSINESS HEAVYWEIGHTS FOR STRATEGIC ADVISORY BOARD

Mid-market investor Livingbridge has formed a strategic advisory board.

The committee will provide “senior counsel and an informed external perspective on critical political, economic, social, regulatory and technological matters and how these might impact on Livingbridge’s business and investment strategy,” the firm said.

Dame Alison Carnwath, a Livingbridge non-executive director since 2001, will chair the board. Carnwath is current chair of Land Securities and also holds positions at Zurich, BASF and Evercore Partners.

Lord Livingston, former chief executive of BT Group and ex-UK minister of state for trade and investment, will also join the board, as will ex-Jupiter Fund Management chief executive Edward Bonham Carter.

Rounding off the board are Amee Chande, managing director for global strategy and operations at Chinese ecommerce giant Alibaba Group, and Andy Harrison, former chief executive of Whitbread, Easyjet and RAC.

“The strategic input from such an experienced, knowledgeable and diverse group of people will be invaluable in helping us anticipate, support and plan both our own development as a firm and that of our portfolio companies. In an increasingly complex global environment it is imperative to be well informed on current issues outside of our normal scope of activities,” Said Wol Kolade

KIMS GROUP RECEIVES INVESTMENT OF US$200 MN FROM TRUE NORTH

Mumbai, March 29, 2017: In one of the largest healthcare transactions in India, the Kerala Institute of Medical Sciences (KIMS) will partner with True North, a leading private equity fund. True North will invest over USD 200 million in the KIMS Group. This investment will be for the stake held by Ascent Capital Advisors India Pvt. Ltd & OrbiMed Advisors Llc and as a primary capital infusion to fund the growth plans of the KIMS Group across India and the Middle East. True North will hold around 40% stake in India. Dr. M. I. Sahadulla, Chairman of the KIMS Group, and his management team, with a board majority, will continue to run the Company both in India and the Middle East.

Commenting on the deal, KIMS Chairman, Dr. M.I. Sahadulla said, “Started by a group of professionals including Doctors and Management experts, our aim at KIMS has been to provide ethical, high quality healthcare with a focus on patient safety. Our goal is to ensure that the best facilities and expertise of international standards are made available to the people we serve. When considering the choices of an equity partner, we sought to join with a group that maintained high ethical values similar to ours, and with whom we could work with collaboratively to provide the best of healthcare facilities at an affordable cost. Our interactions with Vishal Nevatia, Founder of True North and Satish Chander, Managing Director of True North coupled with their impeccable record along with positive feedback from their existing portfolio companies gave us great confidence to partner with the firm. Together, with a shared value system, we hope to continue our growth and to become one of the largest Healthcare providers in India and the Middle East in the next 3 to 5 years.”

Satish Chander, Managing Director of True North commented: “We believe that private equity has a key role in funding Indian healthcare services to address the sector’s supply-demand gap. True North has played an active part by investing in the sector and it continues to be a key focus area for us. We have had the opportunity to evaluate numerous organizations in this space and have made nine investments across our different funds. We have known Dr. M.I. Sahadulla and his team for several years and we truly admire their pursuit to build a healthcare service enterprise of the highest caliber. We see their flagship Trivandrum facility as a testimony to their focus on pursuing excellence in clinical care as well as customer service. We also respect the approach that they have taken to build this enterprise on a foundation based on the highest values and ethics and we feel that this philosophy resonates very well with our principles. True North is very excited at the opportunity to partner with and support KIMS in its future growth aspirations. We are excited about the healthcare potential in India and the Middle East and believe that KIMS would be a good addition to our healthcare portfolio.”

About KIMS

Kerala Institute of Medical Sciences (KIMS) is a Healthcare Group providing quality healthcare services across India and the Middle East. KIMS was founded in 2002 by the Chairman Dr. M.I. Sahadulla and founding promoters, who leveraged their vast international healthcare experience to deliver high quality clinical care with courtesy, compassion and competence at an affordable cost. KIMS is the largest corporate hospital chain in Kerala and has over 1,500 beds across 6 hospitals. KIMS’ first and largest hospital in Trivandrum is a 650-bed multi-specialty quaternary care hospital. KIMS has emerged as one of the leading providers of medical services, research and academics in South India. The Group has a presence in the Middle East across 5 countries, with 2 hospitals and 6 medical centers, as well as one managed hospital. The Group’s combined turnover is in excess of INR 11 billion with a profitability of 11.5% and employs more than 6000 healthcare providers including 600 doctors.

About True North

True North (formerly known as India Value Fund Advisors – IVFA) was established in 1999 with a focus on investing in and transforming mid-sized profitable businesses into world-class industry leaders, built on the strong foundation of True North Values which are embodied within the principles of ‘The Right Way’.

Steered since its inception by Vishal Nevatia, True North has built deep knowledge and skills in the Indian markets and has successfully launched five separate investment funds with a combined corpus of over US$ 2 billion. True North’s insights and understanding of India has been sharpened over the last 17 years by investing over US$ 1 billion in more than 30 Indian businesses. It has successfully guided these companies in making the transition into well-established and large businesses that are valuable, enduring, socially responsible and is creating immense wealth for all stakeholders.

The True North team has been structured with a balanced mix of 9 Investment and 16 Business Managers, who bring with them several hundred man-years of industry experience to achieve the above objective.

FSN CAPITAL IV ACQUIRES A MAJORITY STAKE IN ACTIVE BRANDS

FSN Capital IV has signed an agreement with Holta Invest to acquire a majority stake in Active Brands AS, a leading Nordic supplier of premium sporting goods brands. Holta Invest, existing management and founders will re-invest alongside FSN Capital and continue to own a material stake in the company.

Active Brands manages a portfolio of well-established sports apparel and equipment brands, including Kari Traa, Dæhlie, Bula and Sweet Protection. The company has achieved great success in recent years, and has delivered strong growth from an efficient and scale-able platform.

Based on a talented and dedicated workforce, Active Brands has consistently outperformed the Nordic market for sporting goods by generating organic annual growth of 30% since 2013. From a strong Norwegian base, the company has gradually expanded into new geographies, and in 2016 approximately 30% of net sales were generated outside of Norway.

In partnership with FSN Capital, Active Brands aspires to reinforce its strong position in the Nordics and further accelerate international growth, through both organic and inorganic initiatives.

“We have admired Active Brands for a long time and have been impressed by the platform created by Holta Invest and the management team’s ability to develop truly unique brands with significant international growth potential. Our ambition is to build on Active Brands’ leading position in the Nordics and support further growth in North America and Central Europe together with our new partners”, says Erik Nelson, Partner at FSN Capital Partners AS, acting as adviser to FSN Capital IV.

Active Brands CEO, Espen Krogstad, is pleased with the acquisition by FSN Capital.

“On behalf of the employees and management team of Active Brands, I am pleased to have FSN Capital as a new majority owner. Active Brands has developed in a fast pace and is today amongst the leading companies in the Nordic sporting goods industry. We are delivering solid growth across all geographies and I look forward to further developing the company”, says Espen Krogstad.

Holta Invest will retain a 20% ownership stake in Active Brands post the transaction.

”We established Active Brands in 2010 with the objective of taking a leading role in the consolidation of the Nordic sporting goods industry. Since then, Active Brands has developed into a great business with a talented team, strong brands and a scalable platform. The company has a strong position in the Nordics and has successfully entered large international markets. We are proud of the development of Active Brands and we are honored to get FSN Capital on board as a new majority owner. We believe in a promising future for the company and we are excited to continue our ownership of Active Brands together with FSN Capital”, says Dag Teigland, Chairman Active Brands and CEO Holta Invest.

The transaction is subject to regulatory approvals from the Norwegian competition authorities.

LIVINGBRIDGE INVESTS IN STOWE FAMILY LAW

Livingbridge, the mid-market private equity firm, has invested in Stowe Family Law LLP, the largest family law firm in the UK with 10 offices nationally including a flagship office in central London.

The investment will be used to fuel the growth of the firm by building a larger national footprint, opening up to 30 additional offices over the next five years, as well as building on SFL’s strong IT platform and management team.

Livingbridge believes that the law firm has enormous potential to serve more of the UK.

Daniel Smith, of Livingbridge, said:

“Stowe Family Law is a great success story. Under Marilyn’s ownership it has become the largest specialist family law firm in the UK, consistently delivering outstanding service and outcomes for its clients. Livingbridge is delighted to have the opportunity to invest in SFL and work with the team. The business is in fantastic shape with a talented team of leaders, solicitors and staff who are at the top of their game. We look forward to working with SFL to continue delivering great client service and to grow the business further.”

Livingbridge has invested in over 100 entrepreneurial companies, particularly in consumer markets and professional services, supporting recruitment firms such as Frank Recruitment Group, Staffline and The Up Group as well as Kingsbridge, the specialist insurance broker, and Broadstone, the pensions and employee benefits provider.

This investment is the second investment from the Livingbridge 6 fund, which completed fundraising in September 2016.

Stowe Family Law was founded by Marilyn Stowe, who is best known for her market-leading client service and expert handling of all types of matrimonial disputes alongside her work freeing Sally Clark, the mother wrongly jailed for the murder of her two sons in 1999 in one of Britain’s most famous miscarriages of justice. Mrs Stowe took on the case for free and in her own time after suspecting the case against Mrs Clark was flawed.

Since it was founded over 30 years ago, the practice has acted for over 20,000 clients and built a network of 10 offices across the UK.

The deal will allow Mrs Stowe, one of the country’s top family lawyers, to explore new opportunities, using her expertise as a family lawyer and campaigner for justice as well as her reputation as a successful businesswoman.

Marilyn Stowe, founder of Stowe Family Law said:

“I will always be involved with the firm, and I am particularly thrilled it will continue to bear my name. It has been my most important ambition for this firm and its clients to thrive following my departure and I have achieved this with Livingbridge. Today also marks an incredible personal milestone for me, having built Stowe Family Law up over decades from a converted cobbler’s shop in East Leeds. The families and individuals that my fantastic team and I have helped have always been at the heart of my career. I went into the legal profession to give back to society and to fight injustice and that’s a legacy I know will be continued by all my colleagues at Stowe Family Law. I’m now very much looking forward to exploring new opportunities to use my experience to help address some of the issues that matter most to me.”

Charles Hartwell, CEO of Stowe Family Law, said:

“Thanks to Marilyn, and with the investment from Livingbridge, the future looks very strong for our firm and our clients. We have a great team, offering exceptional service in difficult cases and the investment will allow us to take our personal service to a much wider audience across the country. We will always pride ourselves on our expertise, authority and commitment to delivering straightforward advice in a professional and caring way.”

CAPITON ACQUIRES A MAJORITY STAKE IN THE GEMACO GROUP

About the Company

Gemaco is a leading provider of full-service merchandising and promotional marketing solutions for global industry and fast-moving consumer goods (FMCG) customers. Gemaco’s service offering allows its clients to outsource all business processes related to promotional merchandising – from trend analysis, design, procurement and logistics to distribution, quality control, IT and cost management.

Gemaco dark

For more than 20 years, Gemaco has been active as the premium supplier of promotional products, sales promotion solutions and fulfilment programs across a wide range of sectors. The Company’s 13 locations make it one of the very few providers able to serve large corporates on a global scale. Gemaco employs around 290 people, of which 110 are based at its headquarters in Mechelen (Belgium), and generated sales of € 90 million in 2016.

Transaction summary

Gemaco is a proprietary transaction which was identified through capiton’s targeted sector approach in the area of “marketing procurement / promotional merchandise” leading to an exclusive sales process.

capiton acquires the Gemaco Group together with Management from the family office Saffelberg Investments and will support the further internationalization of the business. Financing of the transaction is provided by capiton’s current investment vehicle, capiton V, and banks.

Based on its strong market positioning, capiton and management are planning to grow the business both organically as well as through targeted acquisitions.

The transaction remains subject to approval from competition authorities. Buyers and sellers have agreed not to disclose the financial terms of the transaction

THE FOUR KEY SECTORS OF TRUE NORTH

True North has now restructured its business and investment management Teams as per sector specialisations:

1 – Financial Services

2 – Consumer

3 – Healthcare

4 – Technology products and services

The firm over the years, has developed deep-rooted expertise in sectors like healthcare, consumer focused industries (like media and entertainment, radio taxi, retailing, food services) and financial services. It will now add technology products and services to its portfolio.

INDIA VALUE FUND ADVISORS REBRANDS AS TRUE NORTH (MANAGERS)

From: Live Mint E-Paper

Private equity firm India Value Fund Advisors has unveiled a new brand identity, renamed itself True North (Managers), and plans to expand its investment focus to technology products and services, it said on Wednesday.

“Our name has changed but our values remain intact which defines the core values and principles that have moulded the functioning of our company for more than a decade,” said Vishal Nevatia, managing partner of True North.

“One of the reasons for this rebranding is that we have a very unique business model whereby we are combining the business nurturing skills of a conglomerate with the sharpness and focus of a private equity group. Nobody has done that before in India, and even globally there are very few examples,” added Nevatia.

Along with the change in identity, it also announced a realignment of its sector focus. It has restructured its business and investment teams in line with sectoral specializations— financial services, consumer sector, healthcare, and technology products and services.

On 20 September, Nevatia said in an interview that the company is looking to move beyond the healthcare, financial services and consumer sectors and will add technology and services companies to its investment portfolio.

He added that India Value Fund saw opportunities in mid-sized information technology firms, start-ups and other digital businesses, and companies operating in hi-tech areas such as cloud computing and analytics. Over the past year, the PE firm has developed expertise in sectors like healthcare, consumer-focused industries (like media and entertainment, radio taxis, retailing, and food services) and financial services.

“We will become sector-focused. We decided that it’s better to do few things, but do them best. We feel that India has now evolved so even if we are sector-focused, there are enough things to do. We feel that there is enough depth in sectors. We are adding a fourth sector, which we haven’t looked at in the past—technology product and services. We believe that in the next 10-15 years, 80-90% of our investments will be in these four sectors,” he said, adding that the company is now in the process of hiring a senior executive to lead the vertical.

True North, one of the early movers in Indian private equity, and is largely known for executing control transactions in India’s mid-market.

In the last 17 years, the firm has worked with over 30 businesses and invested over Rs8,000 crore of equity capital.

Currently, it is investing out of its fifth fund, Indium Fund V, and has deployed more than a third of the $700 million (Rs 4,471 crore) corpus.

The fund’s investments include deGustibus Hospitality Pvt. Ltd, which owns and operates restaurant brands Indigo and Indigo Deli, non-banking financial company Magma Fincorp Ltd, and seed company SeedWorks International Pvt. Ltd.

The fund also invested in Atria Convergence, in which India Value Fund had invested previously.

True North has $500 million in dry powder from the latest fund and an additional $500 million of co-investment commitments from limited partners, or investors in PE funds.

CITIC LIMITED, CITIC CAPITAL, THE CARLYLE GROUP AND MCDONALDS FORM STRATEGIC PARTNERSHIP TO EXPAND IN MAINLAND CHINA AND HONG KONG

New Partnership Will Become the Largest McDonald’s Franchisee Outside the United States

CITIC Limited (SEHK:00267, “CITIC”), CITIC Capital Holdings (“CITIC Capital”), The Carlyle Group (NASDAQ: CG, “Carlyle”) and McDonald’s Corporation (NYSE: MCD, “McDonald’s”) today announced the formation of a partnership and company that will act as the master franchisee responsible for McDonald’s businesses in mainland China and Hong Kong for a term of 20 years.

mcdonalds-small-french-fries

The total consideration payable by the new company to acquire McDonald’s mainland China and Hong Kong business is up to US$2.08 billion (approximately HK$16.14 billion). The consideration will be settled by cash and by new shares in the company issued to McDonald’s. After completion of the transaction, CITIC and CITIC Capital will have a controlling stake of 52%, while Carlyle and McDonald’s will have interests of 28% and 20%, respectively.

The partnership will use its combined expertise and resources to accelerate growth in McDonald’s business through new restaurant openings, particularly in tier 3 and 4 cities, and to improve sales performance in existing restaurants. The focus will be on key areas such as menu innovation, enhanced restaurant convenience, retail digital leadership and delivery. It intends to add over 1,500 restaurants in China and Hong Kong over the next five years.

McDonald’s CEO Steve Easterbrook said, “China and Hong Kong represent an enormous growth opportunity for McDonald’s. This new partnership will combine one of the world’s most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success. By working together, we will unlock even faster growth and be closer to the customers and communities we serve as McDonald’s works to be the leading Quick Service Restaurant across the Chinese mainland and Hong Kong.”

China’s consumer sector is growing rapidly, benefiting from continued urbanisation, an expanding middle class and increasing disposable household incomes. China’s working population is larger than those of the US and Europe combined, yet spending levels of China’s middle class are a small fraction of those in more developed countries. As disposable incomes rise, people will continue to spend more on leisure and dining out, particularly in tier 3 and 4 cities where there is great growth potential. As such, the market for Western Quick Service Restaurants is expected to continue to grow rapidly.

For CITIC, this investment offers a chance to deepen its exposure to the consumer sector, which is poised to be the main driver of China’s economy for decades to come. This transaction is another step in CITIC’s efforts to better balance its financial and non-financial businesses. CITIC also sees opportunities for synergies with its existing businesses.

Mr Chang Zhenming, Chairman of CITIC Limited, commented: “We believe CITIC’s unique platform and its extensive resources will enable us to help realise McDonald’s full potential in China. Together with our partners, we will devote ourselves to continue upholding McDonald’s extremely high standards of food quality and service. Importantly, this is also a strategic opportunity for CITIC to invest in the expanding Chinese consumer sector. McDonald’s extensive network and consumer base will provide us with invaluable insights, which we will leverage to the benefit of our existing businesses.”

For Carlyle, this investment offers the chance to partner with an iconic brand with sizeable market share and growth potential in China. Carlyle has years of strong investment and operating experience in the global consumer and retail sector, and is well positioned to drive further growth of the new company. Equity for this transaction will come from Carlyle Asia Partners IV. Carlyle has invested more than US$7 billion of equity in approximately 90 transactions in China, as of 30 September 2016.

Mr X.D. Yang, Managing Director and Co-Head of the Asia buyout team of The Carlyle Group, will serve as Vice Chairman of the board of the new company. He said, “Carlyle and CITIC have a strong history of partnering together. Today, we are pleased to cooperate with CITIC again, alongside McDonald’s, on one of our largest deals in China. This substantial investment demonstrates our confidence in the strength of the Chinese consumer.”

Mr Yichen Zhang, Chairman and CEO of CITIC Capital, will serve as Chairman of the board of the new company. He said, “McDonald’s core business proposition and potential in China is clear. We will work closely with the existing management team and partners, including Beijing Capital Agribusiness Group, to respond to local market expectations and continue to expand and improve the business to meet the needs of the Chinese consumer.”

As part of its turnaround plan announced in May of 2015, McDonald’s committed to refranchising 4,000 restaurants by the end of 2018, with the long-term goal of becoming 95% franchised. As a result of this transaction, McDonald’s is refranchising more than 1,750 company-owned stores in China and Hong Kong.

As of 31 December 2016, McDonald’s operates and franchises over 2,400 restaurants in mainland China and more than 240 restaurants in Hong Kong. It has built one of the strongest brand names and most robust systems in the region over the past three decades. Currently employing over 120,000 staff and serving over one billion customers annually in China, McDonald’s is the second largest Quick Service Restaurant chain in China and the largest in Hong Kong.

Upon completion of the transaction, the new company will have a board of directors with representatives from CITIC, CITIC Capital, Carlyle and McDonald’s. McDonald’s existing management team will continue to lead the business.

The deal is contingent upon relevant regulatory approvals. The deal is expected to close in mid-2017.

This press release should be read in conjunction with the full text of the HKEX Announcement dated 9 January 2017, which is available on www.hkex.com.hk.

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About CITIC Limited

CITIC Limited is China’s largest conglomerate operating domestically and overseas, with businesses in financial services, resources and energy, manufacturing, engineering contracting and real estate as well as others. CITIC’s rich history, diverse platform and strong corporate culture across all businesses ensure that CITIC Limited is unrivalled in capturing opportunities arising from China’s continued growth. CITIC Limited is listed on the Stock Exchange of Hong Kong (SEHK: 00267), where it is a constituent of the Hang Seng Index. CITIC Group, a Chinese state owned enterprise, owns 58% of CITIC Limited. For more information about CITIC Limited, please visit the company website at www.citic.com.

About CITIC Capital

Founded in 2002, CITIC Capital is an alternative investment management and advisory company. The firm manages over US$8 billion of capital from a diverse group of international and Chinese investors. Core businesses include Private Equity, Real Estate, Structured Investment and Finance, Asset Management and Venture. CITIC Capital currently employs over 200 staff members throughout its offices in Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo and New York. The firm combines a deep knowledge of the Chinese business and financial markets with world-class investment expertise to create and maximize value for its investors.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with US$169 billion of assets under management across 125 funds and 177 fund of funds vehicles as of 30 September 2016. Carlyle is one of the largest investors in China, having pursued approximately 90 investments over almost 20 years in China. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including aerospace, defence & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 35 offices across six continents.

About McDonald’s

McDonald’s is the world’s leading global foodservice retailer with over 36,000 locations in over 100 countries. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.