Press Release|Funds

KBRA Assigns a Rating to the Capital Call Facility provided by ABN AMRO to GCF IV Holding C.V

31 Jan 2025   |   Dublin

Contacts

KBRA Europe (KBRA) assigns an A rating to ABN AMRO's Capital Call Facility (the "Facility") to GCF IV Holding C.V., an investment vehicle owned by Avedon Growth Capital Fund IV C.V. and Avedon Growth Capital Fund IV Coöperatief U.A. (together, “Fund IV” or the "Fund”). The Outlook is Stable. The rating was requested by ABN AMRO as the sole lender in the transaction. Neither Avedon Growth Capital Fund IV C.V. nor any of its associates has requested this report or the rating, and this report has not been prepared for or approved by any of them.

The Facility is a bilateral revolving capital call facility with a current commitment amount of €100 million. The Facility matures in August 2025, with the option of extensions at Lender's discretion. The Facility can be used for financing new and follow-on investments, payment of fees and expenses relating to investments, general management of fund and the Facility. The Lender benefits from a market standard full security package including: (i) pledge over capital call rights; and (ii) pledge over bank accounts into which capital call proceeds are paid. In addition, the Lender can also request to create security over the Fund’s receivables following an Event of Default which is continuing beyond ten business days.

The Fund is the fourth vintage of Avedon Capital Partners B.V. (“Avedon” or the “Firm”), focusing on growth capital opportunities as a lead investor in low and mid-market companies with an enterprise value of €25-150 million in the Benelux and DACH region. The Fund’s equity investment range between €20m-€120 million, with flexibility to deploy higher amounts. The Fund’s final close occurred in July 2021, having received approximately €612 million of commitments from 58 investors.

Avedon was founded in 2003 as part of NIBC, a merchant bank based in the Netherlands. As NIBC Capital Partners, the team invested over €250m in growth capital and managed an independent fund, Avedon I. In 2011 the partners acquired 100% of the management company, and the Firm was rebranded to Avedon Capital Partners.

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Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

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