Danske Private Equity in EUR600m second close

10 March 2009

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Fund

Danish fund-of-funds Danske Private Equity has reached its target of EUR600m in a second close of Danske PEP IV. Fundraising started in January 2008, and a first close was held on EUR521m in June last year. A final close is expected in June 2009, and the fund's hard-cap is EUR800m.

The fund has a three year investment period, a life span of 10+2+2, and terms and conditions were described as standard. Legal advice was provided by Kirkland & Ellis, and Danske did not use a placement agent. KPMG acted as tax adviser.

Investors

The fund has secured commitments from both new and existing investors in the Nordic countries. Minimum subscriptions were set at EUR5m. Institutional investors represented 97% of the LP base, including the life insurance division of Danske Bank. The vehicle is divided into two modules: investments in Western Europe denominated in euros; and investments in North America denominated in US dollars. Subscriptions were equally divided between the modules.

Investments

As with previous funds, this fourth vehicle will target small- and mid-market buyout funds in these two regions. The fund will commit to a maximum of 15 funds per year. Additionally, Danske PEP will explore secondary opportunities as well as co-investments together with existing portfolio funds. Co-investments will never exceed 10% of the total fund value. To date, five fund commitments have been made from the vehicle, to three US funds and two European funds respectively, representing 30% of the fund's current value.

People

The Copenhagen-based fund is headed by Jon Danielsen, supported by a 19-strong investment team.