Vaaka Partners' third fund hits €225m hard-cap in three months

Mikkel Stern-Peltz
10 March 2017

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Finnish buyout firm Vaaka Partners has held a final close on the тЌ225m hard-cap for its third vehicle, Vaaka Partners Buyout Fund III.

The firm completed its fundraising efforts after three months on the road, bringing in new and existing investors for the third iteration of its buyout fund.

Vaaka managing partner Juha Peltola told unquote" the fundraising effort was completed in-house, as has been the case for previous vehicles. He said the firm had seen strong support from existing investors, as well as substantial interest from new LPs.

The third fund is broadly market standard, according to Peltola, with a 10-year lifespan and typical extensions. Terms and conditions are in line with the market for similar funds, he said.

Investors
LPs in Vaaka Partners Buyout Fund III include Finnish and European institutions.

Deutsche Bank Private Equity, AlpInvest and BP Pension Fund are among the European investors in the vehicle, while Finnish LPs include Ilmarinen, Varma Mutual Pension Insurance Company, The State Pension Fund of Finland, and Finnish Industry Investments' (Tesi) FoF Growth II fund-of-funds.

AlpInvest, Ilmarinen, BP Pension Fund, and Tesi are all recurring investors, having backed Vaaka III's predecessor vehicle, according to unquote" data.

Investments
Vaaka's third buyout fund will follow the strategy of the previous funds in the series, investing in Finnish SMEs with a view to back buy-and-build plays and international expansion.

Peltola said the GP would look to make 8-12 investments with the new vehicle, targeting €5-30m equity tickets – though the sweetspot will likely be €10-20m, reserving significant capital for add-on acquisitions.

The typical enterprise value for Fund III's buyouts will be in the €10-50m bracket, though it will be able to make acquisitions up to €100m EV, Peltola said.

The GP's second fund made nine investments and targeted buyouts with €5-30m equity tickets, of companies generating €10-100m of revenues. Its most recent investment was in November 2016, when Vaaka Partners Buyout Fund II acquired a majority stake in Nokia-based waste receptacle business Molok through an MBO.

People
Vaaka Partners – Juha Peltola (managing partner).