Nordic Capital X hits €5bn target in first close - reports

Alessia Argentieri
19 August 2020

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Nordic Capital has held a тЌ5bn first close for its 10th private equity fund, hitting its initial target, according to press reports.

The fund was launched in March 2020 and has a €5.75bn hard-cap, which is expected to be reached in the coming months.

LPs in the vehicle include Massachusetts Pension Reserves Investment Management Board, which committed up to €175m to the fund. Meanwhile, many previous LPs re-upped, according to press reports.

The vehicle is larger than its predecessor, Nordic Capital Fund IX, which closed on €4.3bn in May 2018, surpassing its €3.5bn target.

Nordic Capital Fund X will make investments in mid-market companies primarily based in northern Europe, operating in a wide variety of sectors, including healthcare, technology, payments, financial services, industrials and business services.

Nordic Capital declined to comment on fundraising when contacted by Unquote.

The coronavirus pandemic has deeply affected fundraising across the Nordic region, which recorded only five final closes, raising a total of €1.2bn in the first eight months of the year. By comparison, there were 12 final closes in the same period of 2019, which collected a total of €6bn, and 11 final closes in Jan-Aug 2018, raising €19.9bn.

Despite the slowdown, the region has seen several large first and final closes, and the market is expected to accelerate its pace in the coming months.

Among others, Danish GP Axcel held a first close for its sixth fund, Axcel VI, on €507m in February, while Swedish private equity firm Priveq held a first and final close for its Priveq Investment Fund VI on SEK 2.5bn in July.

In the secondaries market, Cubera IX, which acquires LP interests in Nordic buyout funds, held a final close on €524m in February. EQ PE closed its EQ PE SF III secondaries fund on €155m and its fund-of-funds EQ PE XII North on €190m in June.

Furthermore, Swedish private equity firm EQT is expected to close EQT IX, which has a €14.75bn target and €15bn hard-cap, during the third quarter.