Axcel closes fourth fund on DKK 3.6bn

Viktor Lundvall
13 July 2011

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Axcel has closed its fourth fund, Axcel IV, having raised DKK 3.6bn.

The fund, which has a limited partnership structure, had an initial target of DKK 3bn due to the difficult market outlook. Axcel was able to exceed the target due to an improvement in the fundraising environment and the completion of a number of successful exits such as Pandora. The fundraising process was launched approximately one year ago.

Axcel IV has a 10-year lifespan and the terms and conditions of the fund, such as management fee, carry and hurdle, were said to be market standard. JP Morgan was used as placement agent during the fundraising process.

The fund's predecessor Axcel III, which raised DKK 3bn at final close in 2006, is said to be fully invested.

Investors
Axcel IV has attracted commitments from existing investors as well as new foreign investors, Danish businesses and family offices. Backers were said to have been attracted to the fund due to Axcel's track-record of delivering stable returns.

72% of investors are based in Denmark, 8% in the rest of the Nordics, 14% in Europe and 6% of commitments come from the rest of the world (excluding North America). Pension funds and life insurance funds make up the largest proportion of commitments with 32%, followed by corporate and private investors with 24%. Banks have provided 17% of the total commitment, funds-of-funds 15% and government-sponsored funds 12%.

LPs in the fund include FIH Erhvervsbank, Nordea, ATP-PEP FSP Pension, GE Asset Management, PKA, PenSam, SEB, Sixth Swedish National Pension Fund, PFA Pension, Danfoss, AVR, Primo, FEAS, Realdania, Linak, Hoffman Holding, Jysk, T&W Holding A/S, Investeringsselskabet Elkær Invest A/S, Nowaco, Merifin Capital, Kirkbi, Amanda Capital, von Braun & Schreiber, DnB Nor, Kuwait Investment Authority, Amundi, Akina, idinvest Partners and Argentum.

Investments
Axcel IV will have a similar investment mandate to Axcel III. The new fund will focus on investing in medium-sized Danish and Swedish companies with revenue between DKK 250m-4bn. Companies Axcel invests in are typically family-owned businesses in need of generational succession, companies looking to expand from serving local markets to all of Europe, firms in need of focus for their core business as well as those that require restructuring.

The fund has made two investments to date: Nordic Waterproofing (which was formed through the merger of Katto and Trelleborg) and Cimbria. According to Axcel, they intend to make one or two more investments in 2011.

People
Christian Frigast is managing partner at Axcel.