Polaris Equity holds first close on EUR275m

Fund

Danish buyout house Polaris Private Equity has held a first of close of its third fund on EUR275m. The fund launched in October 2008 and Polaris expects to reach its target of EUR350m by summer 2009. Terms and conditions are described as standard. Acanthus Advisers acted as placement agents.

Investors

The fund's returning backers are AP Moller Maersk, Danske Bank and ATP Private Equity Partners, which have invested in all of Polaris' three funds. New Danish subscribers include Salling Fonden, FIH, Primo Holding and C.L. Davids Fond og Samling. The fund also attracted international capital from Pohjola Private Equity Funds in Finland; Alliance Trust Equity Partners in Scotland; ACG Private Equity and Parvilla in France; and Swiss fund-of-funds Euro Private Equity. Minimum subscriptions were set at EUR5m, and the GP contributed more than 1% of the committed capital. After the first close, the largest investors hold an 11% share in the fund. Following the final close later this year, however, it is expected that no investor will hold stakes of more than 10%.

Investments

Similar to its predecessors, the new fund will invest in small- and medium-sized businesses in Denmark and Sweden. The fund does not have a particular sector focus, but Polaris has experience in the industrial, retail and service sectors. The sweet spot for investments are enterprise values of EUR40-100m. The average holding period is five years, and 90% of Polaris' investments are exited through trade sales. The first investment from Fund III was completed a week after the first close, when Polaris acquired the two cleaning companies Kolving & Thaning and Alliance clean & care. The two entities will be merged under the name Alliance+.

People

Managing partner Jan Johan Kuhl is the main manager of the fund.

Name: Polaris Private Equity Fund III

Target: EUR350m

Closed on: First close EUR275m March 2009

Focus: Small- to mid-market, Denmark and Sweden

Contact: Jan Johan Kuhl

Address: Polaris Management A/S

Malmogade 3

DK-2100 Copenhagen

Denmark

Tel: (+45) 3526 3574

Advisers

Acanthus Advisers (Placement agent).

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