Danske holds €600m second close

The Danish fund of funds manager’s fourth fund has hit its target size. While it will remain open to for further commitments, the firm doesn’t expect the fund to hit its €800m hard cap, given current fundraising climate.

Danske Private Equity has held a second close on Private Equity Partners IV, having reached its target of €600 million.

The Danish fund of funds investor held a first close on the fund in May last year on €521 million, with commitments from new and returning investors from the Nordic countries.

Investors are still showing interest in the fund which is why the firm is keeping it open, Jesper Knutssøn, Danske’s investment manager, said in an interview. But Knutssøn said he does not anticipate that the fund will reach its hard cap of €800 million due to the difficult fundraising environment.

The fund of funds will continue its predecessor’s strategy, committing to around 15 small and mid-market buyout funds in Europe and North America. Unlike past vehicles, Fund IV will also pursue secondary opportunities.

Approximately 30 percent of the €600 million fund has already been committed to three unnamed funds in the US and two funds in Europe.

Danske Private Equity now has €2.3 billion under management and is owned by the Danske Bank Group. It is headquartered in Copenhagen and was founded in 1999.