IK targets €1.6bn for Fund VIII

The firm has launched its latest flagship vehicle, while Fund VII is now just 'one or two' deals short of being fully invested after agreeing to buy French orthopaedic group Marle from Carlyle.

London-based IK Investment Partners has launched its eighth flagship fund targeting €1.6 billion, PEI's sister title Private Healthcare Investor has learned.

The firm’s previous fund, which held a final close on €1.4 billion in 2013 having initially targeted €1.7 billion, is understood to be “one or two” deals away from being fully invested.

A spokeswoman for IK declined to comment.

IK VII’s portfolio now contains 13 companies, following the group’s announcement today that it is to buy orthopaedic products and distribution specialist Marle International from Carlyle Europe Technology Partners.

French-headquartered Marle provides specialised manufacturing services for a range of hip, knee, shoulder, spine and extremities implants, as well as high quality orthopaedic instruments. It generated revenues of €82 million in 2015.

Last December, IK VII invested in hygiene solutions provider CID Lines, having previously bought a majority stake in Belgian OTC consumer health business Vemedia in 2012. The firm also invested in Norway’s leading dental care provider, Colosseum Dental, in June 2010.

PHI understands the new fund is, like its predecessor, a diversified vehicle seeking opportunities in healthcare and other sectors in the Nordic region, France, Germany and the Netherlands.

IK VII fund investors include a $200 million commitment from Minnesota State Board of Investment and a $75 million commitment from the New York State Retirement System. The fund also has a €91.5 million commitment from Edinburgh-based fund of funds manager SL Capital, while sovereign wealth fund Alaska Permanent Fund has a $20 million stake, according to PEI Research & Analytics.

IK held a final close for its IK Small-Cap fund on €277 million in March 2016, having initially targeted €250 million, as reported by Private Equity International.

This article first appeared on Private Healthcare Investor.