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Nordic-Focused Private Equity Fundraising

by Louise Maddy

  • 27 Jun 2011
  • PE

Preqin’s Funds in Market product lists 33 private equity vehicles currently in market that include Nordic region in their geographic focus or focus specifically on the region. Collectively, these funds are targeting EUR 12 billion in capital commitments. 54% have already held at least one interim close, and aggregate commitments for these funds currently stands at just over EUR 1.5 billion.

The largest fund type by aggregate target size and number of funds currently in market investing in the Nordic region are real estate funds. There are 10 such funds targeting EUR 5 billion in capital commitments. Buyout funds are targeting the second most in capital commitments. Although there are only four buyout funds focusing on the area they are targeting EUR 4.8 billion and collected EUR 470 million from interim closes. There are eight venture funds, equating for 24% of funds investing in this region targeting EUR 713 million in total. Three of these are venture general vehicles, the same number for early stage vehicles and two funds focusing on late stage/expansion.

The largest fund currently in market is the EQT VI buyout vehicle, being raised by EQT Partners. The vehicle is seeking EUR 4.25 billion and focuses on deploying capital in the Nordic region and German speaking Europe. Its investments include buying corporate spinoffs, family-owned businesses, public to private and acquiring holdings from other private equity firms.

As of June, 11 Nordic-focused funds have reached final close in 2011 having raised an aggregate EUR 1.9 billion. Of these the largest fund is the USD 1.228 billion (approximately EUR 856 million) First Reserve Energy Infrastructure Fund.  The fund, managed by First Reserve Corporation aims to capitalize on the firm's existing expertise as an energy-buyout firm by capturing a mix of infrastructure deals that it finds through its main series of funds but that do not fit into those vehicles' mandates. The fund invests in the Nordic region, as well as Western Europe and North America.

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