Private Equity Funds in Market Considering the Nordic Region - July 2013

by Stuart Hunter

  • 30 Jul 2013
  • PE

According to Preqin’s Funds in Market, there are 57 funds currently raising capital which consider investments in the Nordic region, either exclusively or as part of a broader European focus. The 57 funds are targeting a combined €23bn in aggregate capital, with 29 having already held an interim close, collectively raising just shy of €6bn.

Forty-six percent of the 57 funds in market are managed by Nordic-based fund managers. Out of the Nordic countries, Norway-based fund managers represent the highest number of fund managers targeting the Nordic region as part of their geographical focus, with eight vehicles aiming to raise just less than €2bn in aggregate capital. Sweden and Finland hold the second highest, each with six vehicles seeking to raise an aggregate of €5bn and €575mn respectively. UK-based fund managers are looking to raise just less €7bn from ten funds.

When looking at fund types, real estate and buyout funds account for the highest proportion of total capital sought for funds considering the Nordic region, with 12 buyout funds targeting €9bn and 22 real estate funds aiming to collect a total of €8bn. Infrastructure, growth and early-stage funds consist of four funds each and are targeting a combined €3bn in aggregate capital.

The average target size of the 57 funds in market considering the Nordic region is €434mn, with the two largest funds, Nordic Capital Fund VIII and PAI Europe VI, both aiming to raise €3bn in capital commitments. The buyout fund, Nordic Capital Fund VIII, is managed by Nordic Capital and mainly invests in the Nordic region as well as German-speaking countries. It operates in a wide range of industry sectors, but also seeks out international investments outside of their prioritised geographical scope. PAI Europe VI focuses on making upper mid-market buyout transactions and making control equity investments in business services, food and consumer goods, general industrial, healthcare, retail and distribution industries.

So far in 2013, 15 funds which consider investing in the Nordic region have closed, having raised an aggregate €8bn in capital commitments. The largest of which was buyout vehicle, Triton Fund IV, which closed above its €3bn target by collecting €3.3bn. The fund invests in mid-market businesses in the industrials, business services and consumer sectors.

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