Polaris IV hits DKK 3bn target

Mikkel Stern-Peltz
05 June 2015

Tweet
Facebook
LinkedIn
Google plus
Send to

Nordic GP Polaris Private Equity has hit the DKK 3bn target for its fourth fund, unquoteт has learned.

Polaris managing partner Jan Johan Kühl told unquote" Polaris Private Equity IV had reached its DKK 3bn target. He added that hitting the DKK 3.5bn hard-cap could not be ruled out before the vehicle's final close, given strong appetite from investors.

Although the vehicle has reached its initial target, five months after its first close, the GP has yet to announce a formal second close. Kühl said fundraising had gone according to plan, with good support from existing LPs as well as solid interest from new investors.

The GP began fundraising in late 2014 with the help of placement agent Acanthus, and the LPs to have committed capital since Polaris IV's first close in January include existing investors and new international investors, as well as local LPs investing with the GP for the first time.

Polaris' fundraising news follows the sale of Hamlet Protein to Altor and Goldman Sachs, which returned 4x money for the vendor. According to unquote" sources, Polaris has averaged returns of 3x over its last 17 exits – including Hamlet Protein.

The vehicle's focus will be 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.

Investments made through the GP's previous fund include the 2014 deal for food service business Det Danske Madhus and the secondary buyout of flooring manufacturing machinery provider HTC Sweden from 3i.

Dansk Vækstkapital announced it had committed DKK 400m to Polaris IV, although other LPs have not been named.

The fund has attracted both new and former investors from Denmark and abroad, with the split between Danish and foreign investors being roughly equal at first close.

Investors in Polaris' previous vehicle include France's Parvilla and ACG, Finnish fund-of-funds manager Pohjola, and Danish pension fund ATP, according to unquote" data.

At the time of first close, ATP told unquote" that while it was in discussions with Polaris, it had not yet committed any capital to the fund.