IK closes fifth fund on €825m

Industri Kapital has announced a final close of its fifth buyout fund, more than two years after launch.

Stockholm-headquartered private equity firm Industri Kapital has announced the final of its latest buyout fund, Industri Kapital 2004 Fund, on €825 million ($1.1 billion).

The fund was launched in 2002 with an initial target of €2.5 billion that was later scaled back to €1.6 billion. The fund held a first closing on €500 million in October 2003.

Investors in the fund include pension funds, insurance companies, banks, government entities and funds of funds. 39 percent of the fund’s investors come from the Nordic region, 36 percent are from the rest of Europe and 25 percent of commitments came from the US, according to a press release.

The fund made its first investment at the end of 2004, acquiring construction company Myresjöhus from its parent Skanska in December for approximately SEK500 million (€55 million; $72 million).

According to the release, the firm made four investments and completed seven realisations in 2004, returning €814 million of cash proceeds to its funds.

IK manages almost €4 billion in capital commitments. The firm invests in the Nordic and Benelux regions, as well as Germany and France and has a current portfolio of 27 companies.