Procuritas hits target with Fund V

Nordic private equity firm Procuritas has closed its fifth buyout fund at its hard cap of €200 million, a return to form after its previous vehicle came in under target.

Procuritas, a Nordic buyout firm founded in 1986, has held a final close for its latest buyout fund after a five month fundraising process. The firm confirmed the successful close but declined to comment further.

The firm launched its fundraising roadshow in February with Probitas Partners acting as placement agent. By May, the fund was oversubscribed according to a source close to the process, with commitments being dialled back from €250 million to the hard cap of €200 million. 

The successful fundraising of Procuritas Capital Investors V comes three years after its predecessor vehicle failed to meet its €150 million target, garnering €139 million in commitments.

The firm’s senior investment team had effectively broken up after partners Hans Karlander and Lars Krogsgaard left the firm prior to the Fund IV fundraising, which dampened LP enthusiasm for the fund, a source said.

Mikael Ahlström

Mikael Ahlström, Procuritas

A number of investment directors were promoted to fill the void left by the departees, bringing the partnership back to six. The current team is lead by founding partners Mikael Ahlström and managing partner Hans Wikse. The four other partners are Erik Fougner, Mattias Feiff, Tomas Johansson and Björn Lindberg.

The latest fund has been raised on the back of largely unrealised investments in the Fund IV portfolio, and by a relatively youthful team, two factors which would normally make the fundraising a challenge. However, the firm and its advisors were able to convince LPs that it remained a sound bet.

“With six partners overseeing a €200 million fund, you have a lot of [executive] horsepower. These guys are young, very professional, and operate in a constructive way, and that seemed to sit well with investors,” a source close to the process said.

The sale of Swedish tire company Däckia to Pirelli earlier this month for about €70 million, which is understood to have delivered a “stellar” return multiple just shy of double digits, will also have cheered LPs.

Re-ups accounted for just over half the new fund’s total commitments. Nordic fund of funds manager Argentum, which committed 24 percent of Fund IV, is understood to have committed to the new fund. Overall, the LP base is predominantly European, with a handful of North American and Middle Eastern LPs, a source said.

Procuritas completed Sweden’s first public-to-private buyout in 1988, acquired Gunnebo. It raised its maiden fund in 1990 with SKr 254 million, followed by Fund II (SKr 963 million) in 1998 and Fund III (€227 million) in 2003.