LACERA approves €75m re-up to Nordic

The Los Angeles County Employees Retirement System previously committed to Nordic Capital’s seventh fund, which has already completed at least 12 portfolio acquisitions.

The Los Angeles County Employees Retirement Association’s Board of Retirement approved a €75 million commitment to Nordic Capital VIII at its meeting last week. 

Nordic is targeting €4 billion with a €4.5 billion hard-cap for its latest vehicle, which will invest in large and mid-market companies in Sweden, Norway, Finland, Denmark and Germany. The firm specialises in healthcare, according to its website, and attributes 70 percent of its funds’ value creation to operational improvements. 

LACERA invested in Nordic’s previous vehicle – a €4.3 billion 2008 vintage – which was generating a 0.9x total value multiple and a negative 4.8 percent net internal rate of return as of 31 March, according to Washington State Investment Board documents. 

Nordic has completed at least 12 investments through its seventh fund, including two in the last year. In July, the firm used Fund VII to acquire a 55 percent stake in Resurs Bank, Solid Försäkringar, Reda Inkasso and Teleresurs, which will be combined to form a company that specialises in consumer financing, profiled insurance solutions, contact centre services and debt collection. 

Nordic was unavailable for comment. 

LACERA had a 10.3 percent allocation to private equity on a 7 percent target as of 30 June, according to its website. 

Nordic Capital was founded in 1989. The firm has offices in Copenhagen, Frankfurt, Helsinki, Jersey, London, Luxembourg, Oslo and Stockholm.