Polaris holds DKK 2.2bn first close

The fund has a target of DKK 3bn with a DKK 3.5bn hard-cap and became operational on January 1, as the investment period of Polaris's previous fund expired. It is understood that fundraising began around six months ago and a final close is expected before summer.

Terms are industry standard, according to unquote" sources, with a management fee around 1.75%, hurdle at 8% and 20% carry. The lifetime of the vehicle is 10 years with two potential one-year extensions.

Acanthus acted as Polaris's placement agent for the fund, from which no investments have yet been made.

Polaris Private Equity III, the GP's previous fund, launched in the third quarter of 2008 and held a final close on €365m in early 2010, exceeding its €350m target.

Investments
The vehicle's focus will be the same as its predecessors, investing in lower mid-market Danish and Swedish companies valued at between DKK 300–750m with revenues of DKK 175–1500m.

Investments made through the GP's last fund include the 2014 deal for food service business Det Danske Madhus and the secondary buyout of flooring manufacturing machinery provider HTC Sweden from 3i.

Investors
Polaris will not announce LPs in its latest fund until the final close, though Dansk Vækstkapital announced it had committed DKK 400m to Polaris IV.

Sources said the fund has attracted both new and former investors from Denmark and abroad, with the split between Danish and foreign investors being roughly equal.

Previous investors include, France's Parvilla and ACG, Finnish fund-of-funds manager Pohjola, and Danish pension fund ATP, according to unquote" data.

However, ATP told unquote" that while it was in discussions with Polaris, it had not yet committed any capital to the fund.

People
Jan Johan Kühl is managing partner at Polaris Private Equity.

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• Topics
• Buyout
• Nordics
• Polaris Private Equity
• Denmark
• Sweden
• Unq2015Feb