IK VIII to hit €1.6bn target in coming weeks

Having closed its small-cap fund on its €277m hard-cap in March, IK Investment Partners should be hitting its €1.85bn hard-cap by the end of the year, according to sources familiar with the fundraising process.

IK VIII held a first close in July, having reached around €1.3bn of commitments. A source with knowledge of the matter told unquote" the fund is likely to reach a final close on its €1.85bn hard-cap in Q4 2016.

IK began fundraising for its latest mid-market vehicle in March this year and is on pace to surpass its predecessor, the €1.4bn IK VII fund – a 2012-vintage vehicle that targeted €1.7bn.

Unlike IK VII, which employed the services of Campbell Lutyens as a placement agent, fundraising for IK VIII is understood to have been done in-house. According to an unquote" source, the fund's management fee will be 1.75%, while lifespan will be the typical 10 years with an extension of up to three years.

IK would not confirm any fundraising efforts and declined any further comment when contacted by unquote".

Investors
Official filings for the vehicle show in excess of 30 LPs have committed to the fund, including Alberta Teachers Retirement System, fund-of-funds Alpha Associates, HarbourVest, New York Teachers Retirement System, Varma Mutual Pension Insurance Company, SL Capital, Ardian VII and the Minnesota State Board of Investment.

A full list of LPs can be found on unquote" data and includes high-net-worth individuals, family offices, insurance companies, pension funds and funds-of-funds.

Filings suggest the IK partnership has committed in excess of €50m to the fund, and unquote" understands no debt financing was used for the GP commitment.

Investments
IK VIII will follow the strategy of its predecessor, targeting deals with enterprise values in the €100-500m range across the France, Benelux, DACH and Nordic regions – though historically the GP has made around half of its investments in the Nordic market.

The fund has a generalist strategy, but IK has tended to favour food products and specialised industrial companies, as well as the broader consumer goods and business process outsourcing verticals.

The fund has so far been used for one investment: the MBO of Danish temperature monitoring products business Ellab in early August.

People
IK Investment Partners – Christopher Masek (CEO); Mads Ryum Larsen (head of investor relations, partner).

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