Odin Equity closes second buyout fund on EUR210m

01 February 2009

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Fund

Danish buyout fund Odin Equity Partners held a final close in December 2008 of Odin Equity Partners Fund II on EUR210m, surpassing its target by EUR10m. The fund has a 10+1+1 lifespan and terms and conditions were described as standard. Odin did not use a placement agent, but legal advice was provided by Kromann Reumert.

Investors

The investor base consists of approximately 50/50 Danish and international investors including five Danish pension funds such as Industriens Pension, PKA and SamPension, which also backed the first fund. International commitments include dedicated private equity investors such as Access Capital Partners, Horsley Bridge, European Investment Fund as well as family offices. The GP itself also contributed a significant amount to the fund. Notably, there are no banks in the investor base. The minimum subscription was EUR6.5m (DKK 50m), with a few exceptions made for existing investors in Fund I, particularly family offices.

Investments

To date there have been no new investments in Odin Fund II, but the investment focus will be similar to the previous vehicle, focusing on the small- to mid-market in Denmark, Southern Sweden and Northern Germany. Odin's first fund is now fully invested and portfolio companies include a private hospital in Sweden, a number of industrial niche companies and a Nordic sea & air freight forwarding business, among others. It is likely that opportunities in similar fields will be explored for the second fund, as well as companies with a strong market position and several opportunities for profitable growth including add-ons, geographic and product expansion and operational improvements. For the second fund, it is also expected that banks will be an increasingly important source of deal flow, both distressed sales and companies that are de facto controlled by banks. Target companies usually have enterprises values of DKK 250m-1bn, the sweet spot being companies valued at DKK 350-600m. Equity commitments are typically in the range DKK 75-175m during the whole of the holding period which usually averages on around 4-7 years. The most likely exit option for Odin's investments is expected to be trade sales to larger industrial holdings.

Odin's first fund closed on EUR130m in 2005, and is now fully invested. Nine platform investments and several add-on investments were made from the first fund.

People

Odin is managed by the three founding partners Esben Bay Jorgensen, Bernd Petersen and Jesper Wadum Nielsen. The total Odin team consists of eight investment professionals that all have significant private equity experience.

Name: Odin Equity Partners II

Closed on: December 2008 EUR210m

Focus: Nordic & German small-/mid-market

Contact: Christian Dalum

Address: Helsingorsvej 38B

Fredensborg 3480

Denmark

Tel: +45 4840 1200

Advisers

Kromann Reumert.