Nordic private equity firm Industri Kapital has dealt a timely boost to its fundraising efforts with two lucrative partial exits from portfolio companies Alfa Laval and Nobia.
The firm has notified its limited partners that the Industri Kapital 2000 fund has sold 10m shares in Alfa Laval, reducing the total shareholding from 26.9 per cent to 17.9 per cent. The shares were sold at SEK100 per share, generating proceeds of E109m.
Investors have been told that from the E280m originally invested in Alfa Laval in 2000, Industri Kapital has now realised E277m. The remaining stake is thought to be worth around E222m (at SEK100 per share), which would result in a total money multiple on the transaction of 1.8x and a total IRR of 24 per cent.
IK also advised its investors that the 1994 fund realised E51m from the sale of 13 per cent of Nobia, reducing its stake to 25.4 per cent. This brought the gross money multiple on the investment up to 7.3x investment cost and boosted the IRR to 39 per cent, including the E102m value of the remaining stake.
Both companies were floated on the Stockholm Stock Exchange last year. Alfa Laval, a maker of fluid control systems, was acquired from Tetra Laval in June 2000, while Nobia, a kitchen products manufacturer, was bought from Stora in September 1996.
A source at Industri Kapital said the share sales were a ‘logical step’ as the firm does not wish to hold listed shares in the long term and had taken advantage of ‘strong demand on the stock market over the last couple of weeks’.
Industri Kapital held a first close of its latest fund, IK 2003, at E500m at the beginning of October, backed by the likes of HarbourVest Ventures, Pantheon Ventures and Skandia. The firm is aiming for a final closing at E2.5bn next year.
News of the latest realisations will be received well with wavering potential investors.