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Nordic Capital completes one of the largest fundraises in Europe, closing Nordic Capital Fund XI at EUR 9 billion hard cap

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Nordic Capital completes one of the largest fundraises in Europe, closing Nordic Capital Fund XI at EUR 9 billion hard cap

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  • Nordic Capital’s eleventh large cap fund is the largest fund raised in the firm’s history, over 45% larger than its predecessor           
  • Strong demand from a globally diversified base of new and returning investors attracted to Nordic Capital’s investment strategy and strong portfolio performance and track record

Nordic Capital today announced the completion of its largest ever fund raise with the successful closing of Nordic Capital Fund XI (“the Fund”) at its hard cap of EUR 9 billion, exceeding its EUR 8 billion target. The Fund, one of the largest and fastest private equity funds to be raised in Europe this year to date, closed in nine months in some of the most challenging fundraising conditions in private equity history. With a c.100% re-up rate and increased GP commitment, Nordic Capital Fund XI is over 45% bigger than its predecessor large-cap fund (Nordic Capital Fund X), which raised EUR 6.1 billion in October 2020.

“The close of Nordic Capital’s largest ever fund is a significant milestone for Nordic Capital. To have secured such strong commitments from both new and returning investors and robustly exceeded the fund target size in some of the most challenging fundraising conditions in private equity history is a great achievement for the teamNordic Capital has consciously grown the fund size over the last five years in tandem with its evolving and highly focused investment strategy and strong pipeline of opportunities. The quality of a GP’s strategy and its ability to achieve true value creation at the company level is put to the absolute test in challenging economic conditions. With this successful close, investors have given a very strong vote of confidence in Nordic Capital’s strategy, our sector expertise, focus on operational and sustainable improvements and ability to deliver highly attractive returns. Nordic Capital thanks them for their great support,” commented Kristoffer Melinder, Managing Partner, Nordic Capital Advisors.

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Nordic Capital Fund XI saw strong demand from a diversified global base of new and returning blue-chip investors that were attracted to Nordic Capital’s focused investment strategy, including its niche-sourcing and sub-sector expertise, and its track record of creating value through business transformation and solid earnings growth. Nordic Capital’s strategy of focusing on non-cyclical growth businesses in partnership with management and with a focus on operational improvement, has been validated by the strong performance and resilience of the existing portfolio in challenging macro-economic conditions. Its record of portfolio growth, deal generation and execution capabilities, as well its clear commitment to ESG were highly attractive to investors. Nordic Capital’s current portfolio companies have on average achieved 11% organic employment growth in 2021. Portfolio companies have on average secured an 12% increase in annual sales and a 15% increase in EBITDA per year since Nordic Capital’s inception.

Kristoffer added: “Nordic Capital Fund XI has already made three investments, partnering with great companies and talented management teams. Each is a perfect fit for the Nordic Capital strategy, operating in segments that have been identified as strong areas of growth by our sector focused investment advisory teams. In times of market volatility, this deep expertise serves Nordic Capital and its investors well, and the Funds can invest selectively in the right opportunities through a robust Shadow Portfolio. We look forward to maintaining this disciplined approach with Nordic Capital Fund XI.”

Nordic Capital Fund XI will continue to apply deep and specialist experience to its core sectors including Healthcare, Technology & Payments and Financial Services, and selectively, in Industrial & Business Services. Its mandate includes investment in mid to large companies within these sectors in Europe; and within Healthcare and Technology & Payments globally.

Pär Norberg, Partner and Head of Investor Relations, Nordic Capital Advisors, commented: 

“We would like to express our sincere gratitude to Nordic Capital’s truly global investor base. The fundraise of EUR 9 billion over nine months for Fund XI was made possible with the overwhelming continued support from our long-standing existing investors, with a c.100% re-up rate and strong backing from new investors, many of whom have chosen Nordic Capital as their only new relationship this year. We are humbled that in a busy year with volatile market conditions, investors have prioritised and partnered with Nordic Capital and we are enthusiastic about continuing to nurture and strengthen these relationships.”

Nordic Capital has built a tested sector-based sourcing process which has been refined over three decades. This has already enabled the Fund to make three investments:  RiskPoint Group, a global independent specialty insurance underwriter based in Copenhagen, with offices in Stockholm, Oslo, Helsinki, Amsterdam, Frankfurt, Zurich, Madrid, London and New York; Equashield, a leading global provider of hazardous drug compounding technologies, with products sold across five continents and the most used Closed System Drug-Transfer Device (“CSTD”) in the US, and in addition, it invested alongside CVC Funds in the public to private acquisition of Cary Group, a European leader in the repair and replacement of vehicle glass and automotive bodywork.

Over the last twelve months, Nordic Capital has enjoyed a strong deal pipeline, and its sourcing strategy has enabled it to invest in high quality assets such as Equashield, Cary Group, RiskPoint, ProGlove, Ascot Lloyd, Bilthouse, Care Fertility, RLDatix, Vizrt and Inovalon. It has also continued to drive an active buy-and-build strategy for its portfolio companies. Nordic Capital has also made full exits of three portfolio companies, as well as partial sell downs in publicly listed companies.

Fund XI attracted investors from across the globe, with investors from every continent including 34% from North America, 31% Europe, 23% from Asia, 10% from the Middle East and 1% from RoW. The investor base comprises a well-diversified mix of institutional investors: public and private pension funds (c. 42%); sovereign wealth funds (c. 23%); fund of funds (c. 14%); endowments and family offices (c. 11%) and financial institutions (10%). The new Fund expands Nordic Capital’s blue-chip investor base with c. 30% of commitments deriving from new investors. The re-up rate by capital of Fund X LPs in Fund XI is c. 100%. The Fund also drew significant support from Nordic Capital’s own team, as well as portfolio company management teams and industrial advisors.

The fundraising was led by Nordic Capital’s Investor Relations team, supported by Rede Partners who acted as global placement agent, Transpacific in Asia, Ameris in South America, with Kirkland & Ellis as lead legal counsel, supported by Carey Olsen.

Source: Nordic Capital

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