Industri Udvikling raises DKK 500m fund

Industri Udvikling IV had been fundraising for 18 months, with an initial target of DKK 400m. IT will have a lifespan of 12 years. The fund follows the GP's 2010-vintage Industri Udvikling III vehicle, which raised DKK 338m.

Founded in 1994, the GP has made 117 investments since inception, making it the most prolific private equity investor in Denmark.

Investors
LPs in the fourth fund are mainly Danish pension funds, workers' unions and public growth funds.

Danish government-backed growth investor Dansk Vækstkapital has committed DKK 190m to the new vehicle.

Investors in the previous fund include Industriens Pensionsforsikring , PensionDanmark, Lønmodtagernes Dyrtidsfond, Pensionskassen for Børne- og Ungdomspædagoger, Fagbevægelsens Erhvervsinvestering and Palsgaard Gods.

Investments
Industri Udvikling will take active minority stakes through investments in small and medium-sized Danish manufacturing businesses with revenues of up to DKK 50-250m.

The fund will commit 20-25 equity tickets typically in the range of DKK 5-20m for a 30-40% stake over the next five or six years, though the GP said it has no set exit horizon for its investments.

In addition to pure equity investments, the fund may also extend loans with equity swap clauses, or a combination of both – though Industri Udvikling will have shareholder rights in any deal.

People
Lars Blavnsfeldt is the CEO of Industri Udvikling.

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• Nordics
• Buyout
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