Erhvervsinvest holds first close on DKK 770m

The fund, with an initial target in the DKK 750m-1bn range, is the largest Erhvervsinvest has raised so far. It has a 10-year lifespan and standard management fees.

Ellegaard, the final portfolio company in Erhvervsinvest's first fund, was sold to Danish private equity fund Capidea back in March, generating an IRR of 27.5% and a money multiple of 2.9x money for the firm. Fund I is now fully realised.

The GP's previous fund, Erhvervsinvest II KS, held a final close on DKK 732m in September 2007. A potential second close of Erhvervsinvest III KS could take place by October 2013.

Investors
Investors in the fund are solely Danish institutional investors and include Nykresdit, PFA, Spar Nord Bank, AP Pension, CW Obel and Dansk Vækstkapital.

Investments
Erhvervsinvest III will take on majority investments in Danish growth SMEs with revenues between DKK 50-500m. Equity tickets will range between a minimum of DKK 25m and a maximum of DKK 100m per transaction.

The fund will make 8-12 investments in total. Erhvervsinvest will continue the same investment strategy as with its previous funds.

Businesses that have the potential to become catalysts in consolidations or restructurings are preferred as investment targets. It is important for Erhvervsinvest that the management is also willing to invest in the business.

People
Thomas Marstrand is a managing partner at Erhvervsinvest.

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