Nordea FoF completes E208m final closing

The Nordic private equity firm has received commitments from 14 institutions at final closing of its Nordea Thematic Fund of Funds I.

Nordea Private Equity has completed the final closing of Nordea Thematic Fund of Funds I. The fund, launched in May 2001, is the firm’s first private equity vehicle.

At present, the fund has committed capital to twelve funds, eight of which are US-based with the remainder being European. The firm says it is aiming to spread its investments across buyout and venture capital funds and has so far allocated two-thirds of the fund to buyouts, with the balance going to venture funds. The fund, designed to give Nordic investors access to funds in European and US funds, has attracted investors from 14 institutions in the region.

Nordea is being advised by US consultant Hamilton Lane. According to Lauge Sletting, head of Nordea Private Equity, this link-up has proved a very effective way of sifting prospective fund candidates. “Hamilton Lane has provided us with recommendations for over 80 deals. We then apply our own evaluations to these recommendations and decide on our strategy,” said Sletting.

Sletting also added that he believed prices in the private equity market have found a fair level. “We see an increasing number of interesting companies in which the private equity funds can invest. To us this means that more well-run private equity funds now raise capital.”

Nordea Private Equity was founded in the autumn of 2000 and acts as the private equity arm of Nordea Investment Management, the Nordic investment adviser. Nordea Investment Management itself is a business unit within Nordea Asset Management, the Nordic asset manager.