Polaris Private Equity, a lower mid-market firm operating in Denmark and Sweden, has hired two investment managers, according to a statement from the firm.
Martin Lindh joins the firm from SEB Private Equity, where he worked as an investment manager. Prior to this he spent five years as a senior associate in the private equity practice at McKinsey.
Thorsten Madsen has five years’ consulting experience within mergers and acquisitions, company valuation, business modelling and corporate strategy, most recently with Implement Consulting Group. He began his career at KPMG and also spent time with Deloitte.
The appointments follow the firm’s DKK 2.2billion (€300 million; $350 million) first close on its fourth fund on 1 January 2015. Polaris Private Equity IV, which has a €400 million target and launched in Q2 last year, is expecting to wrap up fundraising before the summer. Acanthus Advisers is understood to be helping the firm with the fundraising, Private Equity International reported earlier.
Fund IV has the same strategy as Polaris’ prior funds, aiming to build value in lower mid-market Danish or Swedish companies through operational improvements, consolidation and pan-Nordic and international expansion. Polaris typically targets businesses with an enterprise value of between €30 million and €150 million.
In a statement at the time Polaris said its prior fund, the 2009-vintage €365 million Polaris Private Equity III, closed its investment period simultaneously with the first close of Fund IV. The vehicle is invested in 6 Danish and 7 Swedish companies, and has completed more than 19 add-on acquisitions, according to the firm’s website.
Polaris I, a €180 million 1999-vintage Danish fund has been fully realised, generating a gross internal rate of return of 19.9 percent, a net IRR of 16.9 percent and a 2.5x multiple. The 2005-vintage €270 million Polaris II fund is fully invested in 10 platform companies across Denmark and Sweden and has completed 19 add-on acquisitions.