KKR Consortium Boosts Investment in Sylvan

KKR Deepens Investment in Sylvan, Fueling Global Expansion in Fungal Biotechnology

BEIJING – In a significant move signaling continued confidence in the burgeoning field of fungal biotechnology, global investment firm KKR announced today the successful closing of an additional investment in Sylvan, a leading global player in mushroom spawn and fungal technology. The funding round saw participation from new investors, alongside a bolstered commitment from existing investor Novo Holdings, which increased its ownership stake. KKR, through its managed funds, maintains its position as the majority shareholder in Sylvan.

Since its inception in 1932, Sylvan has established itself as a pioneer in harnessing the power of fungal systems. The company’s mission is to develop sustainable solutions for critical global challenges across food, health, agriculture, and materials sectors. With a robust operational footprint encompassing multiple production facilities worldwide, Sylvan currently serves a diverse customer base in 65 countries.

This latest capital infusion underscores KKR’s strategic dedication to accelerating Sylvan’s growth trajectory. Key initiatives targeted for expansion include scaling up production capacities, enhancing research and development capabilities to drive innovation, and cultivating new high-growth product categories. The investment also aims to solidify Sylvan’s presence in Asia’s rapidly expanding markets for mushrooms and bio-based products, a region poised for substantial industrial growth.

The investment round was further bolstered by commitments from prominent global investors, including TPG NewQuest, which led a GP-led transaction alongside KKR. Additional support came from Ping’An Capital, China Post Insurance, Schroders Capital, and Tsao Pao Chee. KKR’s contribution utilizes both its international and domestic fund structures, notably including its first Renminbi-denominated fund, designed to facilitate investment from local Chinese investors.

“Sylvan has demonstrated impressive, sustained growth under our strategic partnership,” stated Chris Sun, Partner and Head of China Private Equity at KKR. “We’ve seen substantial expansion, significant advancements in R&D, and successful strategic acquisitions. Our collaboration with Sylvan’s management team has been instrumental in broadening its impact within the global fungal biotechnology sector and beyond. We are delighted to welcome our new international and Chinese investors, who will join us in supporting Sylvan’s ambitious plans for platform expansion and global reach.”

Jackie Qi, CEO of Sylvan, expressed optimism about the future. “KKR has been an invaluable partner throughout our development journey, and we are thrilled to have their continued support. This investment empowers us to accelerate our vision of becoming a preeminent global leader in fungal biotechnology solutions, spanning diverse strategies and regions. With the backing and expertise of our investors, we are confident in Sylvan’s next chapter of growth.”

**About Sylvan**

Sylvan is a pioneering fungal biotechnology company dedicated to unlocking the extraordinary potential of Earth’s fungal systems. Recognizing the inherent resilience and evolutionary advantages of fungi, the company believes they hold crucial keys to addressing contemporary and future global challenges. Sylvan’s core objective is to harness fungal power to create sustainable solutions impacting food security, human health, agricultural practices, and advanced material development.

**About KKR**

KKR is a premier global investment firm providing a comprehensive suite of alternative asset management, capital markets, and insurance solutions. The firm is committed to delivering attractive investment returns through a disciplined, long-term approach, leveraging its world-class talent pool, and fostering growth within its portfolio companies and the communities they serve. KKR’s investment activities encompass private equity, credit, and real assets, supported by strategic partnerships managing hedge funds. Its insurance subsidiaries, operating under Global Atlantic Financial Group, offer retirement, life, and reinsurance products. Investments attributed to KKR may include the activities of its sponsored funds and insurance subsidiaries. For more information, visit www.kkr.com.