9th March 2020

Pemberton anchors refinancing of BC Partners’ Aenova with €100m second lien PIK loan


Pemberton, the diversified asset manager backed by one of Europe’s largest insurers, Legal & General Group PLC, has worked with funds advised by BC Partners on a second lien PIK loan as part of a refinancing of their portfolio company The Aenova Group, one the world’s leading providers of contract pharmaceutical manufacturing and development services.

The Aenova Group, headquartered near Munich, is among the largest contract development and manufacturing organization (CDMO) in Europe and serves a blue-chip customer base of pharma and healthcare customers.

The pharmaceutical firm operates 15 production sites, primarily in Germany and other European locations. The firm is well placed to benefit from the structurally growing CDMO market due to underlying pharma growth, and a continued outsourcing trend as pharma companies focus on drug development rather than production.

Pemberton supported Aenova through its Strategic Credit strategy. Aenova is well positioned to capitalise on a raft of operational improvements and underlying market growth.

To support the momentum, it was decided that the cash-paying debt of the company should be substantially reduced by injecting significant fresh equity and soliciting Pemberton to provide a second lien PIK facility

This transaction demonstrates Pemberton’s ability to perform deep-dive credit analysis into a complex credit story and provide a tailored capital solution to support a wider successful refinancing and a rating upgrade for the Group.

We’re pleased to help facilitate the growth of a leader in the CDMO market on the back of BC Partners’ significant additional equity commitment to Aenova. This will be a key investment as we roll-out the second generation of Pemberton’s Strategic Credit strategy.

– Robin Challis, Portfolio Manager for Pemberton’s European Strategic Credit Strategies

Pemberton seeks to support corporate borrowers across a range of positions in the capital structure and with varying yields. The flexible capital provided to Aenova shows our ability to bring a financing solution to a very bespoke capital need.

– Jürgen Breuer, Pemberton’s Head of DACH & Nordic regions

As long-term investors in market leading growth companies, we are excited to reinforce our investment in one of the leading CDMO platforms, which is exhibiting strong momentum as a trusted producer of high-quality drugs to leading pharma companies. Pemberton has acted as an enabler of this by analysing, understanding and buying into the investment proposition put forward by the Aenova management team.

– Maximilian Kastka, Managing Director of BC Partners in Hamburg

About the authors

Jürgen Breuer

Partner, Head of DACH & Nordics

Robin Challis

Partner, Strategic Credit