Eqvitec closes third mezzanine fund on EUR103m

01 May 2009

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Fund

Eqvitec Partners has held a final close of Eqvitec Mezzanine Fund III on EUR103m, slightly above its EUR100m target. The fund has a 10-year lifespan with the usual extensions. No information on management fees, carry or GP contribution was disclosed. The fund was advised by Andulf Advokat as a legal advisor, but did not use a placement agent.

Investors

The fund attracted commitments from 12 investors, of which six were new backers. Subscriptions came from, among others, Nordic Investment Bank, European Investment Fund, Finnish Industry Investment, The State Pension Fund of Finland, Pohjola Private Equity Funds' Selected Mezzanine Funds I Ky and Suomi Mutual Life Assurance Company.

Investments

As with Eqvitec's previous mezzanine funds the new vehicle will support buyouts and recapitalisations in small and medium-sized companies, as well as provide financing for organic and acquisitive growth. The regional fund remains Nordic, and the sweet spot for investments is EUR5-15m. This third fund has expanded its sector focus to include industrial products and services in addition to technology. The sector focus is not restrictive, and Fund III has a mandate to invest in a broad range of industries. Also, the fund size has nearly doubled compared to Fund II, which closed in 2005 on EUR53m and is now fully invested in eight companies. To date, one investment has been made by Fund III, in the Swedish company Keycast AB.

People

The fund is managed by Eqvitec's mezzanine team which is led by senior partner, head of mezzanine, Pertti Nurmio.

Name: Eqvitec Mezzanine Fund III

Closed on: EUR103m

Focus: Nordic small- to mid-market

Contact: Pertti Nurmio

Address: Eqvitec Partners Oy, PO Box 148 (Fabianinkatu 8), FIN-00101 Helsinki, Finland

Tel: +358 20 78 9800

Advisers: Andulf Advokat AB.