Swedish buyout firm Litorina Kapital has had the first close of its latest fund with commitments of SEK 843 million (€92 million, $120 million).
Litorina Kapital is targeting a SEK 1.25 billion final close, and the fund will buy companies in Sweden of SEK 100-500 million. This month fellow Nordic buyout firm EQT closed its latest €475 million ($6736 million) expansion capital fund, which was originally designed as a mezzanine debt fund.
Harold Kaiser, senior partner at Litorina Kapital, said: “We attracted international investors from Sweden, Scandinavian and Europe, while in our earlier two funds we primarily had Swedish investors.” The international response has been based on the strength of Litorina’s second fund, he added, although he could not disclose the returns made.
Litorina Kapital specialises in small buyouts and it aims to develop them through their next stage of growth. Sweden makes up for 50 percent of the Nordic buyout market and Litorina Kapital generally buys family run companies. The fund will make 10 to 12 investments.
Kaiser said his company takes family companies and industrialises them growing them substantially. “We try to keep the sellers interested in our success with the company by offering them a 15 to 25 percent stake,” he added.
First close investors include Third Swedish National Pension Fund, The EIF, Access Capital Partners and Scandinavian Private Equity Partners.
Last week Litorina Kapital sold Q-matic, the queue management company it bought in partnership with UK-listed 3i, to Nordic buyout firm Altor for a return of over 9 times its original investment and an IRR of 150 percent.
Litorina Kapital has invested around SEK 1 billion in 22 companies since it was founded in 1998. The 11 companies it owns have a combined turnover of over SEK 3 billion.