Fund Structure

 

Nordic Capital's funds have a limited duration which normally spans ten years, with investments typically being made during the first half and divestments during the second half. A portfolio company is normally held between 3-7 years, with an average investment duration of 4.6 years.

Each Nordic Capital fund is managed by a legal entity called the General Partner, which is supported by a Board of Directors responsible for all investment decisions.

The General Partner invests alongside fund investors, which are called Limited Partners, and is responsible for all investment and divestment decisions made during the life of the fund.

The General Partner's Board of Directors makes investment and divestment decisions based on the recommendations of, among others, the Investment Advisory Company, with which the General Partner has an advisory agreement.

Investment returns are distributed among the Limited Partners and the General Partner. The Advisory Company receives a market-based fee, payable by the General Partner, for advice provided on investments, sourcing, etc.

Each individual Nordic Capital fund and its investors have specific Governance Guidelines.

Nordic Capital fund investors have a long-term perspective and must be able to meet commitments over time. Commitments are only drawn as investments are made or when capital injections are needed and capital is returned to investors over the long term as portfolio companies are refinanced or sold.