Swedish manager beats target in four months

Priveq's latest fund has hit its €200m hard-cap in a rapid fundraising that tapped international investors for the first time.

Swedish private equity firm Priveq Investment has held a final close for its fourth private equity fund at its hard-cap of SEK1.8 billion (€200 million; $297 million), surpassing its initial target of SEK1.5 billion. The fundraising took just four months after its formal launch and was its first vehicle to include international limited partners, the firm said.

Magnus Hardmeier, managing partner of Priveq, said in a statement: “This was the first time Priveq has actively sought to tap international markets for capital and the response exceeded our expectations. We were also pleased the whole fundraising took four months to complete from formal launch. The geographically diversified investor base has undoubtedly strengthened our franchise.”

Investors in the fund came from Sweden, Norway, the UK, Benelux, France, Germany and the US, Priveq said. LPs included Credit Suisse Customized Fund Investment Group, the European Investment Fund, The Fourth Swedish National Pension Fund, KLP and Skandia, the firm’s former parent until its spin-out in 1998. The latest fund is Priveq’s third since it won its independence. 

The fund will follow the same mandate as its predecessor, targeting growth capital investments and buyouts of small- to medium-sized business in Sweden.

Placement agent Axon Partners assisted Priveq with the fundraising, while White & Case provided legal advice.

Simon Wigg, a partner at Axon, said investors were attracted to the fund by a combination of factors including its lengthy track record, a proven and differentiated strategy, a strong, cohesive team, and a well-established deal origination network focused on the target-rich Swedish lower-mid market.

Priveq said it has completed 104 investments since it began investing in 1983, delivering a gross multiple of 4.1x cost on the 92 investments it has exited since then.