Herkules breaks Norwegian record

Against a tough fundraising background, Herkules Capital has broken the record for the largest private equity fund raised in Norway by corralling €690m from investors.

Herkules Capital, the Norwegian firm formerly known as Ferd Private Equity Fund, has garnered NOK6 billion (€693 million; $898 million) for Herkules III. The fund is both the largest ever raised by a Norwegian firm and the largest to focus on Norwegian investments.

Herkules held the first close for the fund in August this year and the final close six weeks later, with 40 percent of equity coming from new investors.

The firm thanked the success of its maiden 2004 vehicle for its latest fundraise. “We believe that fund I was the best performing fund in Europe from the 2004 vintage,” said Gert W. Munthe, managing partner.  

“It generated on average a triple digit annual return,” he added.

Herkules III attracted NOK1 billion more than its NOK5 billion target. The fund will follow Herkules' established investment criteria, investing in mid-market companies located in the Nordic region, primarily in Norway.

The investor base includes Norwegian fund of funds Argentum, Herkules’ old parent company Ferd, Norwegian conglomerate Orkla, Norwegian financial services groups DnB NOR and Storebrand, Goldman Sachs and US pension Indiana PERF.

Herkules was launched as Ferd Private Equity in 2002.