Priveq closes Fund V on SKr2.3bn hard-cap

The majority of the capital in the Swedish lower mid-market fund comes from outside the Nordic region.

Swedish growth investor Priveq Investment has held a first and final close on its fifth vehicle at its SKr2.3 billion (€248 million; $270 million) hard-cap, according to a statement from the firm.

The fundraising was completed in less than six months through bilateral discussions with existing investors and potential investors with whom Priveq had held discussions during the prior fundraising, partner and CEO Louise Nilsson told Private Equity International.

The fund’s predecessor closed on its SKr1.8 billion hard-cap in May 2011 after just four months in market. It was the firm’s first vehicle to include limited partners from outside the Nordic region, as reported by PEI.

Investors in Priveq V include public and private pension funds, insurance companies, family offices, foundations, endowments, government institutions and funds of funds, according to the statement.

Around 75 percent of Fund IV’s investors committed to the new vehicle, with around 37 percent of Fund V’s investors coming from the Nordic region, Nilsson said. Returning investors include Swedish national pension fund AP Fonden 4 and Skandia Mutual Life Insurance. New investors include Swiss fund of funds manager Akina and Pantheon.

In line with previous funds, Priveq V will look to make between 10 and 15 investments of between SKr50 million and SKr300 million for both majority and minority stakes in companies which demonstrate good growth, profitability and strong market position. Priveq invests across the Nordic region, with the majority of its portfolio companies based in Sweden.

Regarding deal flow, Nilsson said Priveq’s segment of the market in Sweden is “quite slow” when it comes to opportunities sourced through intermediaries. Priveq uses its industrial network to connect with companies directly and create its own opportunities. 

“The challenge is to convert those discussions or relationships into transactions,” she said.

The fund is expecting to complete “at least one” investment during the first quarter, Nilsson said.

“I’d say that we have a healthy deal flow, even though from intermediaries it’s quite slow. We must work on our own to try to find those opportunities, outside the more official market.”