Verdane enters Denmark

With the acquisition of Danish fund Nordic Venture Partners I, Verdane Capital Advisors wants to strengthen its relationship with local LPs as it is likely to raise another fund this year.

Verdane Capital Advisors has tapped into Denmark by acquiring Nordic Venture Partners I, a Danish fund, according to a statement. 

The transaction value was undisclosed, but according to a market source the Oslo-headquartered firm paid DKK 300 million (€40 million, $54 million). The investment was made using 100 percent equity from the firm’s Verdane Capital VII, a SEK 1.5 billion 2010 vintage. Verdane declined to comment on how far the fund is deployed as well as on fundraising plans. 

Through the acquisition of Nordic Venture Partners I, Verdane was able to offer liquidity to the original backers of the fund that include well-known Danish investors such as ATP, PensionDanmark and Danske Bank. 

“Verdane funds already have quite an established LP-base in the Nordic region but we are of course very keen to add more Danish investors to our network”, Frida Einarson, investor relations director at Verdane Capital Advisors, told Private Equity International

As well as increasing its LPs in the area, Verdane will seek to increase its investments in Denmark. 
“We think there could be a lot of interesting opportunities in the Danish market in the years to come. We find it important to source portfolios from a number of different types of sellers. It doesn’t have to be a portfolio from a [private equity] fund, but it can also be from banks or insurance companies that are under pressure with current European regulatory changes, or from private individuals and corporates,” she said. 

The Danish banking sector is particularly interesting, because it’s a “more fragmented market than the other Nordic countries”, she said. “Therefore we think there are more opportunities to do deals in that market than with Norwegian, Swedish or Finish banks.”

While the firm declined to discuss fundraising plans, market sources familiar with Verdane said marketing for a new secondary fund will likely start this year. 

Verdane Capital Advisors, which was previously called Four Seasons Venture, was established in 1985. The firm is mainly active in the secondary market, but can do direct investments as well. It currently has €500 million assets under management.