Nordic Capital returns with its biggest fund yet

The target for Fund X is €1.5bn more than the amount it sought for its 2018-vintage predecessor.

Nordic Capital is back in market with its 10th fund seeking more than 40 percent more than the target of its predecessor vehicle.

The Stockholm-headquartered firm is targeting €5 billion for Nordic Capital X, according to May investment committee meeting documents for Massachusetts Pension Reserves Investment Management Board.

The fund’s target is €1.5 billion more than the original target for its predecessor, the 2018-vintage Nordic Capital IX which raised €4.3 billion upon final close, according to PEI data.

Capital raised for vehicle will follow the strategy of its previous funds, focusing on mid-market companies in Northern Europe, according to the documents. Nordic focuses on healthcare, technology and payments, and financial services. It will also make opportunistic investments in select industrial and business services companies, the documents show.

The documents do not state when the fund launched or when Nordic expects to hold the final close on the vehicle.

MassPRIM staff recommended to the board a commitment of up to €175 million for Fund X. The US pension has invested in five prior Nordic funds over 17 years, according to the documents.

Nordic declined to comment on fundraising.

Nordic ranked 102nd in the latest PEI 300, having raised the equivalent of $9.5 billion in the five years to last March. If successful with Fund X, the firm will add to the $811 billion sought by private equity funds in market as of 1 April this year, according to PEI data.

Since 1989, Nordic Capital has invested more than €14 billion in over 110 investments, according to the firm’s website.

Alaska Permanent Fund, ATP Private Equity Partners and Canada Pension Plan Investment Board committed to predecessor Fund IX, according to PEI data.