CataCap raises DKK1.1bn for debut fund

40% of the money in this new Danish fund came from outside of Denmark

CataCap, a Danish private equity firm, has held a final close of DKK 1.1 billion (€150 million, $190 million) on its debut fund.

The fund, which came to market in December 2011, has exceeded its DKK 800 million target and DKK 1 billion hard-cap, according to a statement. The vehicle held a first closing of DKK 500 million (€67 million, $89 million) in December 2012.

Non-Danish investors account for 40 percent of the total commitments. They include Access Capital Partners and Adveq, whose investment is also their first ever in Denmark, according to CataCap.

“Foreign investors are increasingly looking at the small-cap segment because it holds a greater number of attractive targets compared with the mid- and large-cap segments,” Vilhelm Hahn-Petersen, a partner at CataCap, said in the statement.

However, raising money for this segment is “not a walk in the park”, he added. “There are no short-cuts. As a result we are very happy that our efforts have now paid off.”

CapaCap also attracted a number of local investors, including Dansk Vækstkapital, a Danish firm that invests in unlisted funds, which committed roughly €33.5 million. Additionally, Danica Pension, a wholly-owned subsidiary of the Danske Bank Group, and the Lægernes Pensionskasse, a medical pension fund, each invested the equivalent of €14 million, Vilhelm Hahn-Petersen, co-founder of CataCap Management, told Private Equity International in January 2013.

CataCap invests in small and medium-sized businesses in Denmark. It targets companies with an “innovative business model and long-term sustainability”. The fund has completed three platform investments and two add-on acquisitions since its first closing in December 2012.

Prior to founding CataCap, Hahn-Petersen spent a few years at Axcel, a Danish private equity firm, having previously been an operations director at budget airline Easyjet. His brother and fellow partner Jens Hahn-Petersen, an investment banker by training, has worked for both Danish and international private equity funds. Peter Ryttergaard, the third founding partner, also has a background in private equity: as chief financial officer at FLS Aerospace/SR Technics, a Danish technical service provider for airlines, he completed the management buyout of the company with 3i Group and Star Capital Partners.