Belgium-headquartered Kpler has started a formal sales process for a substantial minority stake that could imply a near $5 billion valuation for the company, according to two people familiar with the matter. The private equity firms Insight Partners and Five Arrows, which is owned by Rothschild, have hired investment bank Evercore to coordinate the marketing of the stake and are preparing to circulate investor materials shortly, the sources said.
The exact percentage of the stake being offered was not disclosed by the sources, who spoke on condition of anonymity because the discussions remain private. The process has attracted interest from a range of potential buyers, including private equity groups, family offices and sovereign wealth funds, the people said.
Several large investment firms and state-backed funds have begun preliminary review of Kpler, one source said. Those named as conducting early-stage diligence include Warburg Pincus, Blackstone and Hg, alongside sovereign investors GIC, Temasek and Mubadala. A separate source added that General Atlantic is also among those that have opened an exploratory dialogue.
Representatives for Kpler and the firms listed - Warburg Pincus, Blackstone, General Atlantic, Hg, GIC, Temasek and Mubadala - declined to comment, according to the sources. Insight Partners, Five Arrows and Evercore did not respond to requests for comment, the people said.
Five Arrows and Insight Partners previously invested more than $200 million for a stake in Kpler in April 2022. The remainder of the company’s equity is held by co-founders François Cazor and Jean Maynier, who are reported to want to retain control of the business. A spokesperson for the founders declined to comment, according to the sources.
Kpler has grown its footprint rapidly as market participants seek greater transparency in opaque corners of commodity, energy and shipping markets. The company combines multiple data sources - including satellite imagery, shipping intelligence and customs records - with proprietary modelling to produce analytics that customers find difficult to replicate, the people said.
Those same sources said Kpler is viewed by prospective investors as relatively protected from disruption affecting many software companies, in part because of its proprietary datasets and algorithmic tools. Market volatility and geopolitical conflict have also helped to spur demand for the company’s products and services.
On a revenue basis, Kpler generates around $300 million in annual recurring revenue, the sources said. Using a valuation benchmark suggested by a recent transaction in the sector, one person said Kpler could be valued this year at more than 10 times that revenue, or in a range of 3 billion euros to 4 billion euros - roughly $3.55 billion to $4.73 billion using a rate of $1 = 0.8453 euros, the source added. The same source tied that comparison to a valuation seen in a recent acquisition of a comparable business.
As the formal process advances, potential buyers are expected to conduct more detailed diligence on Kpler’s datasets, modelling capabilities and customer contracts. The size of the stake available and the founders’ desire to retain control may shape both investor appetite and the ultimate valuation achieved.