Danske PEP VI holds final close on €700m hard-cap

Danske principal Jesper Knutssøn told unquote" the GP had a waiting list of LPs at the time of Danske PEP VI's first close on €603m in May 2015, but that the year until final close had seen LPs mired in regulatory, tax and legal complications before final commitments.

At first close, the GP told unquote" the fund fees were significantly cheaper than the industry standard.

Investors
Knutssøn said the fund had marked Danske's real breakthrough with non-domestic investors, with more than half of the vehicle's LPs being from outside Denmark and the GP receiving a commitment from its first North American investor.

LPs in the fund are predominantly Danish and northern European institutions, including Danish pension companies PensionDanmark and PKA IP.

Investments
Danske PEP VI has been investing since its first close, according to Knutssøn, and is currently deployed at 40%.

The GP expects to make a number of further commitments in the coming months and has seen a very strong pipeline of European and North American funds in the market.

Following the same strategy as its predecessor vehicles, Danske PEP VI will invest in North American and western European small- and mid-cap buyout funds, targeting funds smaller than €1bn in size with a €100-500m sweet spot.

At first close, the fund had committed to two funds: a Waterland fund in the Netherlands and lower-mid-market-focused US healthcare manager BelHealth. The vehicle has since made additional fund investments and two co-investments.

Up to 20% of the fund is available for secondary acquisitions and co-investments, though Knutssøn said the manager considers the secondary market very expensive at the moment, and does not expect to make substantial investments in secondary stakes as a result.

People
Danske Private Equity – Jesper Knutssøn (principal).

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