Nordic Capital Fund IX to close at EUR 4.3 bn following strong demand
May 21 2018
- Ninth fund expands its well established investor base, attracting high re-up rate and LP commitments from new geographies
- Demand reinforces Nordic Capital’s leading position in the Nordic region, global healthcare market and selected European sectors
Nordic Capital today announced the successful final close of Nordic Capital Fund IX (“Fund IX”), at just over EUR 4.3 bn. The oversubscribed Fund exceeded its EUR 3.5 bn target in 7 months, and due to strong demand closing 23% above target.
The new Fund enjoyed a re-up rate of over 70% from investors in predecessor funds, while also attracting commitments from a number of new investors. LP commitments represented a well-diversified institutional mix with Fund IX investors including public and private pension funds (c. 35%), sovereign wealth funds (c. 20%), fund of funds (c. 15%), family offices (c.15%), financial institutions and endowments (c. 15%). The Fund benefited from broad geographic support, expanding its well established investor base in North America (c. 40%), Europe (c. 35%) and Asia (c. 15%), and attracting new investors in the Middle East and South America (c. 10%).
Kristoffer Melinder, Managing Partner, Advisor to the Nordic Capital Funds, said: “Nordic Capital’s proven focused investment strategy, experienced team and strong track record, combined with a culture of close partnership with our investors, has attracted a group of blue chip investors. We are grateful for the continued support of Nordic Capital’s existing limited partners and are delighted to welcome our new investors to the Fund”.
As one of Europe’s most experienced private equity investors, Nordic Capital’s model for value creation is based upon a clear focus and a deep understanding of its sectors and markets. Consistent with the strategy of its predecessor fund, a top quartile performer, Fund IX will focus on five core sectors: Healthcare; Financial Services; Technology and Payments; Consumer Retail and Industrial Goods and Services. The Nordic region, which continues to be a highly successful and stable incubator of high quality businesses, will be central to the deployment of the new Fund, as will investing selectively in European businesses and in global Healthcare. Moreover, Fund IX will also continue Nordic Capital’s active co-investment strategy.
“We look forward to continuing Nordic Capital’s successful track record of supporting high quality businesses in our core sectors and regions to achieve sustainable success through focusing on positive transformative growth and operational improvement at the company level. Under Nordic Capital’s ownership, portfolio companies have consistently achieved high levels of earnings growth, on average increasing sales by 8% and EBITDA by 13% per annum in the last twenty years,” added Kristoffer Melinder.
As a result of the strong pipeline that Nordic Capital enjoys, Fund IX has already announced three investments in 2018. These investments include the European Dental Group, ophthalmology chain Ober Scharrer and mobile payments business Trustly.
2017 was a record year for Nordic Capital, during which it completed four exits, including the successful sale of Bambora and three IPOs; as well as the closing of the significant public Intrum/Lindorff merger and several large-scale public market sell-downs of listed shares. Record exit activity was complemented by the signing of five new investments in Fund VIII - Ole & Steen, MFEX, Nordax, Ryds Bilglas and Alloheim. A further five material add on acquisitions were also made by portfolio companies during the year.
The fundraising was led by the in-house Investor Relations team, supported by MVision who acted as global placement agent, Ameris in South America, with Ropes & Gray and Carey Olsen as legal counsel.
Katarina Janerud, Communications Manager
Advisor to the Nordic Capital Funds
Tel: +46 8 440 50 50
About Nordic Capital
Nordic Capital is a leading private equity investor in the Nordic region with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a proven track record. Core sectors are Healthcare, Technology & Payments, Financial Services, Industrial Goods & Services and Consumer & Retail, and key regions are the Nordics, Northern Europe, and globally for Healthcare. Since inception in 1989, Nordic Capital has invested EUR 12 billion in close to 100 investments. The Nordic Capital Funds are based in Jersey and are advised by advisory entities, which are based in Sweden, Denmark, Finland, Norway, Germany and the UK. For further information about Nordic Capital, please visit www.nordiccapital.com