Click here for a larger version
At the end of June 2015, no capital had been raised for
closed-ended private equity funds targeting investments in the Nordic
countries. In 2014, $3.57 billion was raised from the close of seven vehicles
investing into the region, equating to an average fund size of $509.94 million.
Since 2008, average fundraising focused on the Nordic countries has followed a
three year cyclical trend. The lowest points in the average fundraising cycle between
2008 and H1 2015 came in 2009 and 2012, with $112.95 million and $169.33
million raised on average by funds respectively. If the pattern continues, 2015
is expected to be a low year in the cycle. A lack of Nordic-focused vehicle closes
in 2015 so far suggests that this will be the case by year end.
High points in the average fundraising cycle for Nordic
vehicles came in 2008, 2011, and 2014. In two of these years – 2008 and 2014 -
Altor Equity Partners was the GP that raised the largest fund focused on the
region. Altor Fund III gathered $2.92 billion from investors in 2008, while
$2.63 billion was raised by Altor Fund IV in 2014. Such a small market - with
nine the highest number of vehicles closed per year over the time period - is
likely to be skewed by one or two large fundraises. The presence of fund
managers such as Altor Equity Partners and Dansk Vaekst Kapital closing large
vehicles in these peak years may therefore explain the cyclical nature of
average fundraising focused on the region.
Currently on the road, there are nine Nordic-focused private
equity funds with a collective target size of $852.48 million. Erhvervsinvest
III K/S managed by Erhvervsinvest Management A/S is the
largest of these. The buyout vehicle is targeting $148.16 million to invest
FOR THE WORLD'S PRIVATE EQUITY MARKETS
Positioned at the heart of the alternative asset class of private equity, Private Equity International is trusted to provide authoritative coverage the world over. We equip you with the numbers, the knowledge and the network to think and to act. To us, it’s much more than providing content: it’s about delivering information that makes a difference.
Private Equity International: read, trusted and acted on by the world’s most successful private equity professionals.