Chart of the Week: Nordic focused funds

 Demand for Nordic funds has been decreasing since 2011

411

Private Equity International's fundraising numbers reveal that only one Nordic-focused fund has held a final close in the first half of 2014. Verdane Capital VIII, a secondaries fund, reached its target of $299.05 million.  

 

In 2011, six Nordic focused funds held final closes raising $1.93 billion. However, more than 50 percent of this came from Danish Growth Capital Fund. The fund of fund which focused solely on Denmark closed at $1.03 billion. ATP, Pension Danmark and PFA Pension are some of the LPs that have committed to the fund.

 

The fall in Nordic fundraising is likely due to tax and regulatory developments which have made the lives of Nordic-based fund managers harder. The Swedish tax agency for instance has been involved in a six year legal battle with several high profile Nordic fund managers. Political pressure has also caused Nordic managers to alter the status quo. Most recently Altor domiciled its latest fund in Sweden (all its previous funds were domiciled in Jersey) after intense media scrutiny.