HitecVision returns almost 5x money on Fund III

The Norwegian oil and gas specialist has enjoyed the boom in oil and gas. Its final exits from its third fund take total proceeds to NOK 2.2 billion on committed capital of NOK 690 million.

HitecVision, the Nordic oil and gas specialist, has exited the last of its private investments in its third fund with the sale of three investments to Cubera Private Equity, a secondaries specialist.

Pål Dahlberg, the firm’s chief operating officer, told PEO: “The fund had one year left to run and we still had three portfolio companies, which were doing well. We didn’t want to force an exit. Everyone’s better off if they go to another private equity investor.”

The investments that have been sold to Cubera are in RigNet, a provider of communication services to the oil and gas industry; SPT Group, a modelling software provider for the oil and gas industry; and Norse Cutting & Abandonment, an international service provider to the oil and gas industry, focusing on mature fields.

HitecVision Private Equity III was established in 2002 with committed capital of NOK 690 million ($135 million), and has invested in a total of nine portfolio companies.

Dahlberg said: “We called down about NOK 500 million and we have exited about NOK 2.2 billion. We have returned between four and five times the investment. We have had good companies and the market has gone our way. It is getting more competitive, the field is more crowded, but as specialists we see the deals and do the best.”

Before the Cubera transaction, four of the fund’s portfolio companies had been fully realised and three, including SPT Group, were partially realised. The realisations include three IPOs, three trade sales, and a sale to another private equity fund.

Following the deal, the fund’s only remaining investments are listed shares in Noreco and ProSep.

HitecVision specialises in private equity investements in the oil and gas industry in Northern Europe and North America. HitecVision is currently investing HitecVision V, a $800 million fund that closed earlier this year.