Danske Private Equity Partners has held a first closing of E349m for its Danske PEP II fund of funds as it aims to raise E600m for US and European investments.
The fund of funds, which plans to invest in unlisted companies through European and North American venture and buyout funds, has received approximately E50m from Danske Bank and Danske Bank Life Insurance, with the remainder coming largely from Danish institutional investors.
Chicago-based law firm Kirkland & Ellis gave Danske PEP II legal advice.
Danske PEP II has a final closing date of September 2002, although Danske Private Equity managing director Bjørn Haugaard Rubin expects to achieve the fund’s E600m target before that date. “Investors have shown strong interest, particularly considering the intensified international competition and uncertainty presently characterising the financial markets.”
Danske PEP II will invest in around 15 funds, with 50 per cent of investments earmarked for the US. The remainder will be channeled into European funds. “Following on from Danske PEP I, we have opted to limit our coverage to around 15 funds. We believe that this will enable us to make the most of our proactive deal-sourcing network. We will make use of our excellent knowledge of the Nordic markets as well as our strong access to US funds.” The new fund is about to start making new investments.
Danske Private Equity Partners has investment capital totalling E900m. The Danske PEP I fund has so far committed around 65 per cent of the E550m it raised. Investments to date have included Carlyle Group, Nordic Capital, Sprout, NEA, Bay Partners, USVP, BC Partners, Prospect Venture Partners and Orlando Special Situations Fund.