Nordic Capital holds final close for Fund XI on EUR 9bn

Rachel Lewis
25 October 2022

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Nordic Capital has held a final close for its 11th fund on its EUR 9bn hard cap after a nine-month roadshow, as GPs struggle against a challenging fundraising environment.

Nordic Capital XI was registered in December 2021 and held a first close in May 2022 at EUR 7.9bn.

The fund is nearly 50% larger than its predecessor, Nordic Capital X, which closed in October 2020 at EUR 6.1bn. The fund surpassed its target of EUR 8bn.

The fund's placement agent, Rede Partners, revealed that the GP was weeks away from the final close at this month's BVCA Summit, as reported.

Transpacific acted as the vehicle's placement agent in Asia, while Ameris was its South American placement agent. Kirkland & Ellis provided legal advice.

In a statement, Nordic Capital said that the fund had closed "in some of the most challenging fundraising conditions in private equity history".

Other, more generalist mid-market GPs are facing a general "shake-out" amid a crowded market, as reported. Other large closes this year include Advent's USD 25bn for GPE X and BC Partners' under-target EUR 6.9bn final close for BC European Partners XI.

Nordic Capital X is now fully deployed, as reported.

Investors
The fund has seen a 100% re-up rate from LPs and an increased GP commitment, the GP said in a statement.

Around 30% of the fund's commitments derive from new investors, according to the same statement.

Of the fund's commitments, 42% are from pension funds, 23% from sovereign wealth funds, 14% from fund-of-funds, 11% from family offices, and 10% from financial institutions.

Geography-wise, 34% of LP commitments are from North America, 31% from Europe, 23% from Asia, and 10% from the Middle East.

Investments
The GP has in recent years narrowed its specialisation into healthcare, technology and payments, and financial services, with more selective investments into industrials and business services.

Nordic Capital XI will invest in the mid- and large-cap space in Europe among all sectors, and in healthcare and technology globally.

Any deals that dragged the GP's performance down in the past were likely made in sectors in which it did not have this specialised experience, Nordic's COO Klas Tikkanen said at the BVCA Summit.

The fund has already made three investments: minority stakes in Danish risk underwriter RiskPoint and US-based drug compounder Equashield; and the de-listing of Swedish vehicle glass repairer Cary Group, alongside CVC Capital Partners.

People
Nordic Capital - Kristoffer Melinder (managing partner); Pär Norberg (partner and head of IR).