IK closes Small Cap II Fund on €550m hard-cap

The data room was opened at the beginning of October last year, and by the end of the month the fund was fully allocated, IK partner Kristian Carlsson Kemppinen told Unquote.

Including a GP commitment of €50m, the fund held its final close on its €550m hard-cap on 15 February. This is nearly double the size of the firm's maiden small-cap fund, which closed on its hard-cap of €277m in March 2016.

The capital raised will be deployed by a team across the firm's regional offices in Amsterdam, Hamburg, Paris and Stockholm.

IK did not use a placement agent but took legal advice on the raise from a team consisting of Jeremy Leggate, Christopher Braunack, David Pritchett, Adam Skinner and David Grenker from Kirkand & Ellis.

As with its predecessor, the fund is domiciled in Luxembourg and follows market-standard terms.

The IK Small Cap I Fund has been fully deployed and has invested in 12 companies, of which three have been realised to date.

Investors
The GP said the fund was oversubscribed and was reserved for existing IK platform investors, with a majority of existing investors choosing to re-up.

Investments
The investment team is seeking to make 15-18 investments from the fund, with an investment range similar to its predecessor. The focus is majority buyouts and companies with an EV up to €100m, with the ability to make selected minority buyouts.

Equity ticket size will range from €10-30m per buyout, with a provision for making significant minority investments on a selective basis. The vehicle will focus on the same industrial segments and sectors predominating the GP's mid-cap and small-cap funds: consumer goods, engineering, services and healthcare.

IK's latest vehicle will continue to target businesses in its core markets within the Benelux, DACH and Nordic regions, as well as in France.

People
IK Investment Partners – Kristian Carlsson Kemppinen (partner).

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