Procuritas raises EUR 407m for PCI VII

Rachel Lewis
13 April 2023

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Swedish GP Procuritas has held a final close on its seventh flagship fund on EUR 407m as the GP assesses deployment opportunities in a more disciplined market, co-managing partner Mattias Feiff told Unquote.

Procuritas Capital Investors VII is 28% larger than its predecessor fund and had an internal target of around EUR 400m.

Quest Fund Placement acted as placement agent for the fundraise.

Procuritas Capital Investors VI, a EUR 318m, 2016-vintage vehicle, is now fully deployed.

The GP's co-managing partner Mattias Feiff told Unquote that Procuritas is happy with the upsized fund, which completed with an undisclosed but significant GP commitment.

"The market is down in the number of deals, but we have a couple of deals in a late stage so are quite active," he said.

"We also like to source outside of the auction process, it's more difficult but also more disciplined on pricing," he said, adding that current market trends mean it's a good time to be deploying.

The fund is registered as an Article 8 fund under the SFDR and the GP recently hired Linda Leifsdotter, who has 14 years of experience working in ESG, to support its portfolio companies and the fund.

"ESG has been something important for us for many years. We actually discussed doing an Article 9 but the framework and the regulations are uncertain," said Feiff.

Investors
Procuritas is not disclosing names of LPs in the vehicle, but the fund is backed by mostly institutional investors from Europe and the US.

LPs in its predecessor fund included the State of Wisconsin Investment Board (SWIB), insurance company Gjensidige Forsikring, and fund-of-funds Argentum Fondsinvesteringer, according to Unquote Data.

Investments
The fund has made three out of an expected 10-12 investments so far: digital recruitment platform We Select; reagents supplier Nordic Biomarker; and car damage repair chain Werksta.

It will make majority investments, deploying tickets of EUR 15m-EUR 50m in profitable companies that have a good growth story through consolidation.

The fund does have the remit to invest in wider Europe, with its focus lying on Nordic-based companies.

Sector-wise, around half of the capital will be deployed in what Feiff calls service consolidation - business services that are ripe for roll-ups - with the remainder in digital consumer, software and niche industrials.

Unlike many sponsors, Procuritas does not plan to shy away from investing in the consumer sector.

"Digital consumer has been severely hit, but we like to be contrarian - there are definitely opportunities in e-commerce as valuations are down," said Feiff. "So is consumer confidence, but that will clear out over the next couple of years."

Historically, the GP has focused on primary buyouts that are exclusively sourced, but it can do secondary deals.

People
Procuritas - Mattias Feiff (co-managing partner).