Copenhagen-headquartered Polaris Private Equity has announced the first close of its second private equity fund with commitments of €180 million ($230 million).
Polaris II is the successor to the €215 million Polaris I fund. The geographical focus of the new fund will be extended from Denmark to include southern Sweden.
Approximately 75 percent of commitments to Polaris II came from investors from the first fund. Returning limited partners included ATP Private Equity, Danica Pension, Danske Bank, PFA Pension and Kirkbi.
The fund also received commitments from three new investors: Topdanmark, PensionDanmark and Islandsbanki.
The news comes on the heels of a number of fund closings in the Nordic region. Last week Industri Kapital closed its fifth fund on €825 million. In October 2004, Swedish private equity firm Segulah closed on €250 million and in August, Accent Equity Partners also closed its debut fund on €250 million. In the same month, Ferd Private Equity held a first closing of its debut Norwegian fund on €151 million.
Commenting on the close, managing partner Viggo Nedergaard Jensen said in a statement: “Our goal is to increase commitments by about €40 million at a second closing in early summer. We are currently in talks with a number of Danish and international private equity investors.”
According to the firm, Polaris II will invest in 8 to 10 businesses with turnovers preferably between €20 and €25 million in the small and medium sized industrial and service sector business. Concentrating primarily on Denmark, the fund is also expected to invest in one or two Swedish businesses.
Polaris I is fully invested at this stage, having backed seven businesses, two of which have been exited.