LPs jump ship in Odin Equity reorganisation and funds recap

Mikkel Stern-Peltz
08 December 2015

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Danish GP Odin Equity Partners has repaid LPs wishing to exit its two struggling funds and relaunched as BWB Partners, rolling over the investments of Odin into a recapitalised new structure.

The new firm will fully take over Odin's investments, with BWB Partners I taking over the 12 portfolio companies of Odin's DKK 1bn first fund. BWB Partners II will acquire the investments of the €220m Odin Equity Partners II.

Having raised funds in 2004 and 2008, Odin's two vehicles were heavily skewed towards acquisitions made in the immediate run-up to the global financial crisis and following recession.

New commitments totalling DKK 380m were made to BWB Partners I by LPs and the GP, while BWB Partners II retains undrawn capital from Odin Equity Partners II. In total, the two new funds will have DKK 575m to draw on.

LPs in the first two funds that wished to exit their investments were allowed to do so on market terms, as part of the reorganisation led by Lazard Private Fund Advisory Group. Investors that exited their stakes include Danish pension funds Sampension, Industriens Pension and PKA. The exiting LPs were mainly local Danish investors, while the new LP base predominantly consists of international investors.

The investor base for BWB Partners I and II includes Access Capital Partners – an LP in Odin's second fund – as the lead backer. Idinvest Partners, Altamar Capital Partners, PenSam, BNP Paribas Private Equity and SCPP form part of the new funds' investor base, alongside Horsley Bridge Partners, European Investment Fund, Industriens Pension, Euro Private Equity and Coeli.

BWB Partners I will receive an extension on the original lifespan of the 2004-vintage Odin Equity Partners I, running until 2022.

Managing partner Jacob Bergenholz told Danish newspaper Berlingske that BWB would hold off on raising a third fund for the time being. Reports of Odin speaking to investors with the goal of raising a third fund surfaced earlier this year, though market sources expressed doubt the GP would be able to raise it.

BWB will be owned and led by Odin co-founders Esben Bay Jørgensen and Jeser Wadum Nielsen, as well as former Odin managing partner Jacob Bergenholz, who joined Odin in 2006.