Fundraising

Nordic Capital closes fund VI on €1.9bn

The Northern European mid-market investor has closed its sixth private equity fund with commitments 25% higher than its predecessor.

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Stockholm-based mid-market investor Nordic Capital has held a €1.9 billion ($2.3 billion) final close of its sixth vehicle, Nordic Capital VI.
 
Marketing for the fund began approximately six months ago, according to Nordic Capital chief financial officer Mans Folkesson. The vehicle held a first close in December 2005, but Folkesson declined to provide further details.
 

We now have a 25 percent increase in fund size, which is somewhat above our initial ambitions, but we believe that our investment focus and strategy is adequate for a fund of this size.

Mans Folkesson, chief financial officer, Nordic Capital

Nordic Capital said commitments for fund VI were received from the firm’s established investor base, which comprises Nordic and international pension funds, as well as other institutions.
 
Folkesson confirmed that the majority of commitments came from pension funds, with a geographical split of 20 percent from Nordic investors, 30 percent from Europe, 40 percent from the US and 10 percent from other regions.
 
No placement agent was used for the fund. “Our consistent investment focus and track record meant that we had the privilege of long-term support,” said Folkesson.
 
Folkesson said the increase in fund size over predecessor vehicle Nordic Capital V, which closed on €1.5 billion in 2004, showed the confidence of investors in its strategy. “We now have a 25 percent increase in fund size, which is somewhat above our initial ambitions, but we believe that our investment focus and strategy is adequate for a fund of this size.”
 

Folkesson: consistent focus and track record

Folkesson added that fund VI is expected to make investments in 12 to 14 portfolio companies over its lifetime. The size of Nordic’s investments vary considerably, he said, but the new fund meant that the firm could take on larger investments than before.
 
Founded in 1989, Nordic Capital has 26 investment professionals, of which 12 are partners, operating out of two offices in Stockholm and Copenhagen.