Summa closes second fund on SEK 6.5bn

Oscar Geen
26 February 2019

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Nordic private equity firm Summa Equity has announced a final close for Summa Equity Fund II on its SEK 6.5bn hard-cap.

The GP registered the vehicle in November and has already drawn capital from it to acquire building technology firm Infobric earlier this month.

Summa Equity Fund I held a final close on SEK 4.5bn in February 2017 and is now fully deployed across 11 portfolio companies.

Like its predecessor, the new vehicle will focus on investments that are driven by what Summa calls mega-trends, including ageing demographics, movement of people, resource scarcity, population growth, climate change and technological disruption. From these mega-trends, Summa has derived three investment themes, resource efficiency, changing demographics and tech-enabled business.

Summa managing partner Reynir Indahl told Unquote that the new fund will do exactly the same thing as the previous one and the extra capital will be used to do a few more transactions.

Rede Partners acted as independent fundraising adviser to the fund, while Mannheimer Swartling was lead legal counsel. Ropes & Gray provided legal support in the US. PwC provided financial advice.

The latest fund is domiciled in Sweden.

Investors
All of Summa's LPs re-upped into the latest fund, and the GP took on a few new ones, including some US endowments and pension funds, Indahl said. Swedish pension fund AP1 backed Summa for the first time and put out a statement confirming their support for Summa's sustainability-focused approach.

Summa Equity Fund I drew commitments from LPs including the University of Michigan Endowment, Aberdeen Standard Investments and Harbourvest Global Private Equity, according to Unquote Data.

Investments
The new fund will follow the strategy of the previous incarnation, investing equity tickets of €10-50m in Nordic companies that fit its investment themes.

Its first deal was for Swedish construction technology business Infobric, which was signed in February.

People
Summa Equity – Reynir Indahl (managing partner).