Danske PEP IV holds first close on EUR521m

01 July 2008

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Fund

Danske Private Equity has held a first close of its fund-of funds vehicle Danske Private Equity Partners IV (Danske PEP IV) on EUR521m with a target of EUR600m and a EUR800m hard-cap. Danske PEP IV employs a 10+1+1 structure and its terms and conditions are described as industry standard.

The fundraising process started on 2 January 2008 and it is expected that the vehicle will hold a final close before the end of this year. No placement agent is being used but Kirkland & Ellis provided international legal advice, while Gorrissen Federspiel Kierkegaard acted as legal counsel in Denmark.

The fund's predecessor Danske PEP III, which closed in 2006 on its hard-cap of EUR600m, became fully invested in the same week as the first close of Danske PEP IV.

Investors

The Danske Bank Group was the cornerstone investor and committed 18% of the capital raised. Minimum subscription was EUR5m, and investments came in a range of different ticket sizes up to EUR100m. Commitments were secured from prime Danish life insurers and pension funds, and a range of other Nordic investors.

Currently, a number of other Danish, Swedish and Finnish investors are in due diligence on the fund, thus it is expected that the vehicle will close above its EUR600m target.

Investments

The new fund will fine-tune the investment strategy from its predecessors, Danske Private Equity Partners I-III, and invest in mid-market buyout funds in North America and Western Europe. In addition, the fund will pursue secondary opportunities and seek to co-invest with Danske PEP I-IV portfolio funds, and exclude venture funds. Danske PEP IV's investment sweet spot will typically be EUR50m per fund, with an investment range spanning from EUR40-60m. During its life time, the vehicle is looking to inject capital into 15-18 funds.

People

Four partners are responsible for managing the fund: managing partner, John Danielsen, senior partner Peter Thellufsen, partner Klaus Friis and partner Dan Kjerulf. Danske Private Equity also consists of a team of three investment managers and three associates who also will be responsible for running the fund.

Name: Danske Private Equity Partners IV

Closed on: EUR521m

Target: EUR600m

Focus: Mid-market buyout funds, Western Europe and North America

Contact: Dan Kjerulf

Address: Danske Private Equity, Ny Kongensgade 10, DK-1472 Copenhagen K, Denmark

Tel. +45 33 44 63 00

Fax +45 33 44 63 01

Advisers

Kirkland & Ellis (Legal); Gorrissen Federspiel Kierkegaard (Legal).