Nordic Capital Said to Cut Leveraged Buyout Fund Target by 25%

Nordic Capital, a Swedish private- equity firm, told investors it will seek 25 percent less than the 4 billion euros ($5.2 billion) it initially targeted for its latest buyout fund, two people with knowledge of the talks said.

Nordic Capital will now ask for 3 billion euros or at most 3.5 billion euros, said the people, who asked not to be identified because the matter is private. The Stockholm-based firm plans to reach a so-called first close at about half the target by the year-end, allowing it to start investing the money, before completing the fundraising by April, they said.

Nordic Capital began marketing the fund in April after Stockholm-based EQT Partners AB year last year raised 4.75 billion euros, the maximum it sought, for a fund focused on Northern Europe. Investors have less money to commit to buyout funds after the European sovereign debt crisis hindered asset sales, preventing firms from returning cash to investors.

Nordic Capital’s previous fund, a 4.3 billion-euro pool raised in 2008, was valued at a loss as at the end March, according to the Washington State Investment Board, an investor in the fund. The pool has since recovered, and Nordic Capital told investors it was valued at a 20 percent gain as of June 30, according to one of the fund’s backers.

The decision to cut the fundraising target was reported by Private Equity News yesterday.

To contact the reporter on this story: Anne-Sylvaine Chassany in Paris at achassany@bloomberg.net; Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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