Key Takeaways
- Novo Holdings makes its largest planetary health investment in Asia through Sylvan.
- Sylvan plans to expand production, upgrade R&D, and grow in Asian markets.
- KKR remains the majority shareholder in the fungal biotechnology company.
- Investment aims to support sustainable innovations across food, agriculture, health, and materials.
- Sylvan is the world’s largest mushroom spawn and fungal biotech company, active in 65 countries.
Novo Holdings Partners with KKR to Invest in Sylvan
Novo Holdings and KKR have entered into definitive agreements under which Novo Holdings will invest directly in Sylvan, a global leader in fungal biotechnology solutions. KKR, which acquired a majority stake in the company previously, will continue as the controlling shareholder.
This transaction marks Novo Holdings’ largest planetary health investment in Asia and its first in the fungal biotech space. The investment aligns with Novo Holdings’ strategic objectives of supporting sustainable innovations that can address critical global challenges.
Sylvan to Expand Capacity and Accelerate Product Development
With this new capital, Sylvan aims to scale up production capacity, modernize its research and development infrastructure, and deepen market access across Asia. The company will leverage Novo Holdings’ sector expertise and network to strengthen its core position in the mushroom spawn industry and diversify into high-impact products, including fungi-based biomaterials, biopesticides, and nutritional supplements.
Founded in 1932 and headquartered in China, Sylvan operates production facilities around the world and serves customers in 65 countries. Its solutions are targeted at four key sectors: food, health, agriculture, and materials.
Jackie Qi, CEO of Sylvan, said, “With this latest milestone, we are in an excellent position to pursue our ambition to become a global leader in fungal biotechnology solutions across four unique markets.”
Sustainability and Market Demand Drive Sylvan’s Growth
The mushroom industry offers sustainability advantages, including low land and water usage and the ability to convert agricultural waste into high-quality proteins. Sylvan views China and broader Asian markets as key growth areas due to increasing industrialization and demand for mushroom cultivation inputs.
Novo Holdings’ Amit Kakar and Deepa Hingorani noted that “Sylvan is well-positioned to deliver sustainable innovations that support food security, reduce chemical use, and build a circular bioeconomy.”
KKR also reaffirmed its continued commitment to the company. Chris Sun, Partner and Head of China Private Equity at KKR, said, “We are proud of the tremendous progress Sylvan has achieved and believe this new strategic partnership will enable it to unlock even greater growth.”
A Strategic Fit for Novo Holdings’ Planetary Health Platform
The investment in Sylvan aligns with Novo Holdings’ Planetary Health strategy, which focuses on sustainable innovation across areas such as climate, food systems, and urban development. Their team spans Europe, North America, and Asia, emphasizing global collaboration.
This partnership will allow both Novo Holdings and KKR to support Sylvan’s development and help scale sustainable solutions globally, especially across dynamic Asian markets.
