Polaris holds final close on DKK 3.3bn for fourth fund

Katharina Semke
19 October 2016

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Danish private equity firm Polaris is understood to have held a final close for its fourth vehicle, Polaris Private Equity IV, on DKK 3.3bn.

According to media reports, final commitments are halfway between the DKK 3bn target and DKK 3.5bn hard-cap, bringing fundraising to an end after almost two years on the road. Polaris held a first close on DKK 2.2bn in January 2015.

Polaris was not immediately available for comment.

The fund became operational on 1 January 2015, as the investment period of Polaris's previous fund expired. It is understood that fundraising began around six months before that. Polaris initially hoped to hold the final close before the summer of 2015, unquote" reported at the time of the first close.

At first close, unquote" sources stated terms followed industry standards with a management fee around 1.75%, hurdle at 8% and a 20% carry. The lifetime of the vehicle is 10 years with two potential one-year extensions.

Acanthus acted as Polaris's placement agent for the fundraising.

Polaris Private Equity III, the GP's previous fund, launched in the third quarter of 2008 and held a final close on €365m in early 2010, exceeding its €350m target.

Investors
Dansk Vækstkapital announced it had committed DKK 400m to Polaris IV at the time of first close. Other LPs committed to the fund include Pensiondanmark and Finnish Industry Investment, according to unquote" data.

Sources said the fund has attracted both new and former investors from Denmark and abroad. Previous Polaris investors include France's Parvilla and ACG, Finnish fund-of-funds manager Pohjola and Danish pension fund ATP, according to unquote" data.

Investments
The vehicle's focus is the same as its predecessors, investing in lower-mid-market Danish and Swedish companies valued at between DKK 300-750m with revenues of DKK 175-1500m.

Its first buyout was Danish multimedia hardware distributor Triax in June 2015. It was followed by the acquisition of a 65% stake in Copenhagen-based manufacturing software company Configit in February this year and an SBO from Valdeo in June, in which it acquired Swedish plastic surgery group Akademikliniken.

People
Polaris Private Equity – Jan Johan Kühl (managing partner).