Scandinavian Private Equity Real Estate Fundraising

by Andrew Moylan

  • 14 Aug 2009
  • RE

Four funds were raised by Scandinavian private equity real estate fund managers in 2008, receiving aggregate commitments of $1.3 billion. These all closed during the first half of the year. This represented a small decline on 2007 fundraising, when nine funds raised an aggregate $1.9 billion in equity commitments. To date in 2009, one Scandinavia focused fund has reached a final close. ICECAPITAL Housing Fund II closed with EUR 400 million in commitments. There are a further nine private equity real estate funds currently in the market that are managed by Scandinavian firms. Of these, three are focused on Scandinavia and are seeking aggregate commitments of $600 million, whilst six are focused elsewhere in Europe and are targeting $3.0 billion in commitments.

The average size of funds raised by Scandinavian fund managers has increased in recent years. The average size has increased from $152 million in 2006 to $240 million in 2007 and $319 million in 2008. In the last 10 years, private equity firms based in Sweden have raised the most capital out of all the Scandinavian countries, having raised an aggregate $5.7 billion. Firms based in Finland have raised $3.4 billion, whilst Danish firms have raised $1.1 billion and Norwegian firms $300 million.

The largest Scandinavian fund manager is the Stockholm-headquartered Aberdeen Property Investors, which has raised $3.2 billion for closed-end private equity real estate funds in the past 10 years. Helsinki-based CapMan Real Estate has raised $1.87 billion.

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