Crescent Capital Backs Apheon's Trenchless Pipe Platform Play

Crescent Capital Group has provided financing to support pan-European private equity firm Apheon in consolidating six Germany-based pipe rehabilitation companies into an integrated platform targeting the fragmented trenchless technology sector. The Los Angeles-based alternative credit manager, which oversees approximately $50 billion in assets, announced the transaction January 19, committing both initial financing and additional capital to fuel the platform's ongoing buy-and-build strategy in a market poised for sustained growth driven by aging infrastructure across Europe.

The deal brings together IMS Group, resinnovation, Polypipe, Amex Sanivar, Hurricane Trenchless Technologie, and Kardiam—companies that collectively offer complementary products spanning robotic systems, resins, spray-coating equipment, liners, and turnkey solutions for trenchless pipe rehabilitation contractors. Financial terms were not disclosed.

The transaction represents a classic buy-and-build consolidation in a highly fragmented industrial sector, with Crescent's European Specialty Lending strategy providing the debt capital to support Apheon's equity investment and the platform's future acquisition pipeline.

The consolidated platform operates under unified management, positioning the combined entity to deliver comprehensive system solutions to professional contractors while unlocking operational synergies across manufacturing, distribution, and technical service capabilities.

The investment thesis centers on consolidating a fragmented supplier base in a sector benefiting from powerful secular tailwinds.

Aging water and sewer infrastructure across developed markets is driving accelerating demand for trenchless rehabilitation technologies, which allow pipe repair and replacement without excavation—reducing costs, minimizing surface disruption, and shortening project timelines compared to traditional dig-and-replace methods. European municipalities face mounting pressure to upgrade deteriorating pipe networks while managing budget constraints, creating sustained demand for cost-effective rehabilitation solutions.

"We are excited to partner with Apheon and the platform's founders to support the consolidation of these innovative companies into a leading platform in the trenchless pipe rehabilitation sector, which presents a compelling opportunity as a highly-fragmented industry with strong long-term growth fundamentals," said Christine Vanden Beukel, Managing Director and head of Crescent's European Specialty Lending strategy, in the announcement.

The platform's complementary product portfolio creates cross-selling opportunities and positions the combined entity as a one-stop-shop for contractors. Rather than sourcing robotic systems from one supplier, resins from another, and curing equipment from a third, contractors can now access integrated solutions from a single vendor—streamlining procurement, improving technical compatibility, and potentially reducing total system costs.

For Apheon, the deal aligns with the firm's established buy-and-build playbook. Since its 2005 founding, Apheon has completed approximately 200 add-on acquisitions across its portfolio companies, demonstrating deep operational expertise in post-merger integration and value creation through consolidation strategies.

The platform comprises six specialized businesses, each bringing distinct technical capabilities:

IMS Group develops and manufactures advanced robotic systems and light-curing equipment for trenchless pipe rehabilitation, representing the technology-forward end of the product spectrum with automated solutions that improve rehabilitation precision and efficiency.

resinnovation specializes in high-performance synthetic resins for durable pipe repair applications, providing the chemical formulations that form the structural foundation of cured-in-place pipe (CIPP) rehabilitation systems.

Polypipe distributes its proprietary RabbitCoater spray coating system designed specifically for in-house pipe rehabilitation, targeting the residential and light commercial segments where property owners seek cost-effective internal pipe repair solutions.

Amex Sanivar focuses on liners for pressure pipe rehabilitation and repair seals for both pressure and non-pressure applications, addressing the technical challenges of maintaining system integrity in pipes carrying water under pressure.

Hurricane Trenchless Technologie delivers turnkey solutions including liner curing systems, customized vehicle fitouts, steam units, inversion equipment, and impregnation systems—essentially providing the mobile infrastructure contractors need to execute rehabilitation projects in the field.

Kardiam produces high-quality diamond milling and cutting tools, supplying the precision cutting implements required for pipe preparation and finishing work.

The geographic concentration in Germany provides operational advantages—shared language, regulatory environment, and proximity facilitating integration—while the combined platform is positioned to expand across Europe leveraging Apheon's pan-European footprint.

The trenchless pipe rehabilitation market is experiencing robust growth driven by infrastructure investment cycles and technological advancement.

Market research firms project the global trenchless rehabilitation sector will reach between $6.5 billion and $9.7 billion by 2030, with compound annual growth rates in the 6-7% range. Europe represents a significant portion of this market, with aging pipe networks in Germany, France, the UK, and other developed economies requiring extensive rehabilitation over the coming decades.

The sector remains highly fragmented, with numerous small and mid-sized equipment manufacturers, materials suppliers, and service providers operating regionally. This fragmentation creates consolidation opportunities for well-capitalized platforms that can achieve economies of scale in manufacturing, expand distribution networks, and invest in R&D to advance trenchless technologies.

Several factors are accelerating adoption of trenchless methods. Regulatory pressure around water quality and leakage reduction is intensifying across Europe, forcing municipalities to address deteriorating infrastructure. Traditional excavation methods face increasing resistance in urban areas due to traffic disruption and surface restoration costs. Meanwhile, technological improvements in robotics, materials science, and curing systems are expanding the range of pipe conditions that can be addressed through trenchless rehabilitation.

The market is also seeing increased private equity interest in infrastructure-adjacent businesses. Water and wastewater infrastructure represents a defensive, non-cyclical end market with long-term secular growth drivers—characteristics that appeal to PE firms seeking resilient cash flows in uncertain macroeconomic environments.

Apheon manages approximately €4.5 billion in assets from institutional investors and family offices, focusing on pan-European mid-market opportunities. The Brussels-headquartered firm, with offices in Milan, Madrid, Paris, Munich, and Amsterdam, has raised more than €5 billion in capital since inception and invested in approximately 40 companies across Europe.

The firm's current portfolio consists of 23 companies representing roughly €3 billion in sales and more than 20,000 employees. Apheon characterizes its approach as providing "patient and friendly capital" to entrepreneurs and management teams, emphasizing partnership over aggressive financial engineering.

The firm's track record in buy-and-build strategies is extensive. Having completed approximately 200 add-on acquisitions for portfolio companies with aggregate transaction value exceeding €7 billion, Apheon brings operational expertise in identifying acquisition targets, executing integrations, and scaling platforms through consolidation. This experience is directly applicable to the trenchless rehabilitation platform, where the initial six-company consolidation likely represents the foundation for additional bolt-on acquisitions.

Crescent Capital Group is one of the leading alternative credit investment firms, managing approximately $50 billion in assets as of December 31, 2025. For over 30 years, the Los Angeles-based firm has focused on non-investment grade credit through strategies investing in marketable and privately originated debt securities including senior bank loans, high yield bonds, and private senior, unitranche, and junior debt.

Crescent's European Specialty Lending strategy, led by Christine Vanden Beukel from the firm's London office, focuses on providing flexible, tailored capital solutions to European mid-market companies, particularly those backed by private equity sponsors executing buy-and-build strategies. The strategy aligns with the broader private credit market's expansion into sponsor-backed transactions, where debt funds increasingly compete with traditional banks in providing acquisition financing and growth capital.

Crescent operates as part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life, which acquired a majority stake in Crescent in 2020. This backing provides Crescent with substantial capital resources and institutional stability, enabling the firm to commit to multi-year financing relationships supporting platform growth strategies.

The firm recently closed a €3 billion European specialty lending fund, demonstrating strong investor appetite for European private credit strategies and providing Crescent with significant dry powder to deploy in transactions like the Apheon platform financing.

The trenchless rehabilitation platform is positioned to benefit from converging favorable trends: infrastructure investment cycles, regulatory pressure, technological advancement, and market fragmentation.

The commitment of additional financing to support ongoing buy-and-build activity signals both Apheon's and Crescent's conviction in the consolidation opportunity. With hundreds of small equipment manufacturers, materials suppliers, and service providers operating across Europe, the platform has a deep pipeline of potential acquisition targets that could add geographic coverage, technical capabilities, or customer relationships.

Integration execution will be critical. Combining six companies with distinct product lines, customer bases, and operational systems presents meaningful complexity. Success will depend on Apheon's ability to implement unified management systems, rationalize manufacturing footprints, consolidate distribution networks, and create a coherent go-to-market strategy that leverages the platform's comprehensive product portfolio.

The financing structure—with Crescent providing both initial capital and committed growth financing—reduces execution risk by ensuring the platform has access to acquisition capital without needing to return to debt markets for each transaction. This pre-committed facility approach has become increasingly common in buy-and-build strategies, allowing platforms to move quickly on acquisition opportunities and negotiate from a position of financial strength.

Risks include integration challenges, customer concentration if the combined platform relies heavily on a small number of large contractors, and potential technological disruption if alternative rehabilitation methods gain traction. The sector also faces cyclical exposure to municipal capital budgets, which can contract during economic downturns despite the non-discretionary nature of infrastructure maintenance.

The transaction reflects broader private markets trends: the continued expansion of private credit into sponsor-backed transactions, the appeal of infrastructure-adjacent businesses with secular growth drivers, and the ongoing consolidation of fragmented industrial sectors where scale creates competitive advantages. As European infrastructure investment accelerates and trenchless technologies continue advancing, platforms positioned at the intersection of these trends stand to capture significant value—provided they execute on the operational complexities of multi-company integration and organic growth.