DevCo Partners has successfully closed a €521 million single-asset continuation vehicle to support the next chapter of growth for Vexve, a European leader in mission-critical valve solutions for energy infrastructure. The transaction provides DevCo with significant additional capital for continued support of the long-term growth of Vexve.
• Pantheon led the raise with strong participation from a number of North American and European institutions and family offices
• Existing investors contributed approximately half of total commitments
• Capital will support Vexve’s organic and inorganic growth initiatives amid accelerating energy transition tailwinds
• Under DevCo’s ownership, Vexve has quintupled its revenues and completed four strategic acquisitions
The vehicle managed by DevCo, which ensures long-term capital support for Vexve, was led by global private markets specialist Pantheon, with strong backing from a number of North American and European institutions and family offices. Existing Vexve investors, including among others the Herlin and Ehrnrooth families as well as Ilmarinen and Tesi, contributed approximately half of the total commitments in the vehicle.
Vexve was acquired by DevCo in 2016 and has since undergone significant acceleration in performance. Through strong organic growth and four completed add-on acquisitions, Vexve’s sales have grown fivefold since DevCo’s entry. With the backing of the new continuation vehicle, Vexve is in a great position to advance its growth strategy and capitalise on the multi-decade decarbonisation and energy transition tailwinds.
“DevCo’s mission is to build world-leading companies in fundamentally attractive niche markets through sustainable long-term ownership. During nearly a decade of partnership, Vexve has transformed into a European leader in energy infrastructure valve solutions. This capital raise marks an important milestone in our long-term investment in Vexve, providing the capital resources and commitment needed for the next phase of growth. We appreciate the continued trust and support of our existing investors and are pleased to welcome the new partners to the Vexve family. I also want to thank the entire Vexve team for their dedication, resilience and outstanding execution in driving the company’s ambitious growth strategy,” says Otto Kukkonen, Vice Chair of the Board of Directors of Vexve and Partner at DevCoPartners.
“This deal underscores Pantheon’s investment approach, which focuses on mission-critical, top-quality assets managed by a leading GP with whom we have a longstanding relationship. We are pleased to leverage our strengths in this market and support the next stage of Vexve’s growth alongside our long-term partner DevCo and a robust syndicate of long-term investors. Vexve is a strong and well-positioned business operating at the heart of the energy transition, with a clear track record of value creation under DevCo’s ownership. We look forward to working with the team as the company continues to scale and capture the significant opportunities ahead,” says Morten Lundin, deal responsible at Pantheon.