Terra Firma has led a consortium of investors in the acquisition of Finnish real estate business Parmaco from MB Funds.
Financial details of the transaction remain undisclosed, though the Financial Times reported that the deal values the business at around €400m.
Metric Capital and Hong Kong-based investment firm Sun Hung Kai & Co are also part of the consortium.
Terra Firma invested via new vehicle Terra Firma Special Opportunities Fund IV.
According to a statement, Parmaco has increased its asset base sixfold to more than 200,000 square metres since MB's initial investment. It also expanded its operations beyond its original focus on Finland into the Swedish market.
Under its new owners, the business intends to double its overall footprint to more than 500,000 square metres over the course of three to five years. It will also pursue international expansion.
MB Funds acquired Parmaco from trade vendor Cramo in 2012.
Founded in 2005 and headquartered in Tampere, Parmaco is a real estate company focusing on the building and renting of schools, day care centres and nursing homes.
Terra Firma – Guy Hands (chairperson, chief investment officer).
Metric Capital – John Sinik (managing partner).
MB Funds – Juha Tukiainen (managing partner).
Parmaco – Ossi Alastalo (CEO).
Quadriga reinvests in the business and retains a minority stake, alongside the company's management team
Entrepreneur Franvisco Fernandez, the founder of banking platform Avaloq, leads the round
It plans to back 20 companies, offering equity cheques of up to €40m across the life of an investment
This is the second investment made by Nobel Capital via its recently raised €40m fund