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Nordic explores GP-led process on Fund VII – Exclusive

The potential deal involves the Scandinavian private equity firm's 2008-vintage fund which has around €2bn in NAV.

Nordic Capital, a stalwart of the European private equity mid-market, has begun discussions with limited partners in its 2008-vintage fund about a potential secondaries transaction, sister publication Secondaries Investor has learned.

The Stockholm-headquartered buyout firm is working with advisor Campbell Lutyens to run a GP-led process on its €4.3 billion Nordic Capital VII fund, according to two sources familiar with the deal.

The transaction would involve moving the remaining 10 unlisted assets into a multi-year continuation vehicle which could have a five-year term, the sources said. These assets have a net asset value of around €2 billion.

Fund VII holds 15 assets, according to Nordic’s website, and it is understood that five of these are listed.

Nordic is exploring the process on its fund due to a difference in motivations in the vehicle’s LP base, according to one of the sources. Some LPs want to exit their investment as the fund has reached the end of its life, while others want to remain in the vehicle to keep their allocations up and allow more time to realise the remaining value in the portfolio, one of the sources said.

This is the second instance this week of a sizeable, established manager initiating a secondaries process on one of its funds. On Monday Secondaries Investor broke the news that Apax Partners, the UK’s second-largest private equity firm according to the PEI 300 ranking, had started a similar process, also advised by Campbell Lutyens. That deal involves selling assets in its €11.2 billion, 2007-vintage Apax Europe VII fund to a five-year continuation vehicle.

Nordic Capital and Campbell Lutyens declined to comment.

For the full story, please visit Secondaries Investor.