Global life science investment firm Novo Holdings on Thursday announced a direct investment in KKR-backed fungal biotechnology solutions developer Sylvan.
Novo Holdings and KKR signed definitive agreements under which the former picked up “a significant minority stake” in Sylvan, DealStreetAsia has learnt.
Following the deal, KKR will remain Sylvan’s majority shareholder.
The deal marks Novo Holdings’s first investment in the fungal biotechnology sector – an area where players offer solutions for securing, stablising, and enhancing the food supply for a growing human population.
The transaction also marks Novo Holdings’s largest planetary health investment in Asia, according to a joint statement on Thursday.
The new capital will support Sylvan’s expansion by enabling increased production capacity, upgraded R&D infrastructure, and deeper penetration into high-growth markets, particularly in Asia, according to the statement.
Sylvan will also benefit from Novo Holdings’s network and sector expertise to further strengthen its position in the global mushroom spawn market and develop new high-impact bio-products, such as fungi-based materials, biopesticides, and nutritional supplements.
Founded in 1932, China-based Sylvan is one of the world’s largest mushroom spawn and fungal biotechnology companies. The company seeks to harness the potential of fungal systems to create sustainable solutions to address global challenges in food, health, agriculture, and materials. Today, it operates multiple production facilities around the world and serves customers across 65 countries.
From spawning to cultivation, the modern mushroom sector offers significant sustainability benefits and circular economy value to planetary health. It requires minimal land and water compared to traditional agriculture and utilises agricultural waste as raw materials to produce high-quality proteins.
“Sylvan represents a significant milestone for our global Planetary Health strategy and underscores our growing presence in Asia,” said Amit Kakar, managing partner and head of Asia, and Deepa Hingorani, partner & head of Planetary Health Asia, at Novo Holdings.
“As a leader in fungal biotechnology, Sylvan is well-positioned to deliver sustainable innovations that support food security, reduce chemical use, and build a circular bioeconomy. We look forward to collaborating with KKR to help Sylvan scale its impact, particularly across dynamic markets in Asia, and advance our shared vision for a healthier and more sustainable planet,” they said.
With total assets of €142 billion ($155.1 billion) as of year-end 2024, Novo Holdings manages the assets and wealth of the Novo Nordisk Foundation.
The company invests in life science companies at all stages of development through its seed, venture, growth, Asia, planetary health and principal investments teams.
