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Funds in Market Considering the Nordic Region - April 2013

by Louise Maddy

  • 15 Apr 2013
  • PE

According to Preqin’s Funds in Market product, there are 50 funds currently raising capital which consider investments in the Nordic region, either exclusively or as part of a broader European focus. These 50 funds are targeting a combined €27.5bn in aggregate capital, with 66% already having held at least one interim close, collectively raising €6.0bn. Fourty-four percent of the 50 funds in market are managed by a Nordic-based fund manager.

UK-based funds represent the highest number of funds in market that consider the Nordic region, with 12 vehicles looking to raise €9.0bn, to invest predominantly in West Europe. Out of the Nordic countries, Sweden is home to the most number of funds in market, with seven vehicles seeking €5.0bn.

In terms of strategy, real estate funds are the most numerate, with 22 funds seeking €10.0bn in aggregate capital. The largest real estate fund in market is the Aalto Commercial Real Estate Loan Programme, which invests in senior real estate loans across the European market. It lends against assets in the UK and Germany with an opportunistic approach to Scandinavia and France. The fund is seeking £1.5bn (€1.8bn) in aggregate capital.

Buyout funds are seeking the most capital, with 12 funds looking to raise €14.1bn. French-based PAI Partners is raising PAI Europe VI, which is the largest buyout fund in market and is seeking €3bn. The fund invests in mid to large LBO transactions in the consumer products, industrial, healthcare, consumer services, and manufacturing industries of the European market.

Eighteen funds that consider the Nordic region closed in 2012, raising an aggregate €4.7bn, the largest of which was Avenue Europe Special Situations Fund II, with a final size of €2.3bn. So far in 2013, four funds that consider investments in the Nordic region have closed, raising a total of €624mn. The largest of which was buyout vehicle, HgCapital Mercury TMT Fund, which closed on £380mn (€447mn) and invests in a range of industries in West Europe, including Denmark, Finland, Norway and Sweden.

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