Nordic Capital to launch €3.5bn fund in H2 2017

The latest fund will be in line with its predecessor, which closed on its €3.5bn hard-cap in 2013.

Nordic Capital is gearing up to launch its ninth buyout fund, which will seek €3.5 billion in commitments, Private Equity International has learned.

Nordic Capital declined to comment.

The fund – which is expected to launch in the second half of next year – will be the same size as its predecessor, which closed on its €3.5 billion hard-cap in December 2013, as reported by PEI .

According to a statement at the time, demand exceeded the fund target by nearly 30 percent.

Investors in that fund include Washington State Investment Board, AlpInvest Partners, Oregon Public Employees' Retirement System, SL Capital Partners, Alaska Permanent Fund, and AP Fonden 6, the sixth Swedish national pension fund.

The fundraising for Nordic Capital VIII was not straight-forward. The firm reduced its target from €4 billion to between €3 billion and €3.5 billion in October 2012 to avoid a protracted fundraising process at a time when there was a lot of uncertainty in Europe around the future of the euro, as reported by PEI .

However, it regained momentum after a first close at €1.7 billion in February 2013 when the uncertainty around Europe subsided, Kristoffer Melinder, a managing partner at NC Advisory, advisor to the Nordic Capital funds, told PEI at the time.

As at 31 March 2016, Fund VIII was delivering a return of 0.9x and an internal rate of return of -4.11 percent, according to Washington State Investment Board.

Nordic Capital has been busy on the exit side. This week the firm completed the biggest London listing of the year so far, floating medical products and technologies group ConvaTec with a listing price of £2.25 ($2.73; €2.50) per share, giving the company a market capitalisation of £4.4 billion. 

In April the firm completed three exits in just two days, realising around €500 million of exited shares.

On 28 April the firm exited its remaining 10.5 percent shareholding in outdoor equipment business Thule Group through an accelerated book-building process at SKr111 per share. The next day Nordic Capital listed discount retailer Tokmanni on Nasdaq Helsinki and retail finance business Resurs on Nasdaq Stockholm.

Don't miss our Nordic Roundtable, featuring AP Fonden 7, Nordic Capital, PwC, SL Capital Partners and Verdane Capital in the November issue of Private Equity International.