PGGM backs €300m Rabo Capital spinout

The Dutch pension fund provider will invest 20% in Nordian Capital’s latest vehicle

PGGM, a Dutch pension fund provider, has backed buyout firm Nordian Capital Partners, which spun out of Dutch bank Rabobank earlier this week.

Rabo Capital’s private equity team has been renamed Nordian Capital Partners. The firm has taken over the existing portfolio of Rabo Capital, which is now called Nordian Fund I, according to a statement.

Additionally, the team has secured €300 million for Nordian Fund II. PGGM has invested 20 percent in the fund, according to Eric-Jan Vink, head of private equity at PGGM.

As part of the transaction, PGGM has also bought a 20 percent in Nordian Fund I, which consist of 15 portfolio companies in the Netherlands. The deal was valued between €100 million and €200 million, according to a source close to the matter. Vink declined to comment on deal financials.

“This transaction is giving PGGM exposure to the attractive Dutch small and medium sized companies in Nordian’s existing portfolio, combined with exposure to Nordian’s new fund. By providing new capital for the team we are supporting them in establishing a good base for the future,” added Vink.

Nordian II will invest in the Dutch mid-market by acquiring majority positions in profitable and sustainable Dutch businesses with a proven track-record and revenues of at least €3 million. The firm is sector agnostic, but has affinity with the food and health and services business, according to a statement.

The deal comes as PGGM continues to build out its private equity department. The team has grown from one to 15 since PGGM sold its interest in fund of funds manager AlpInvest Partners in 2011. Last year, PGGM hired Wouter Snoeijers, a former Permira executive, as a director.

The pension fund provider invests in primary funds, secondaries and co-investments and aims to build up a global portfolio. Its current portfolio has a market value of approximately €8 billion.