Nordic Capital, a Stockholm-based private-equity firm, raised 3.5 billion euros ($4.8 billion) for its eighth buyout fund, meeting its target after 20 months.
Nordic started fundraising in April 2012 with a plan to raise 4 billion euros, before reducing the goal in October that year. The firm held an initial close, the point at which the manager can begin to invest, of 1.7 billion euros in February.
“Nordic Capital Funds have demonstrated a proven ability to consistently return capital to investors, over a 24-year history and through many economic cycles,” Kristoffer Melinder, co-managing partner at NC Advisory AB, adviser to the Nordic Capital Funds, said in an e-mailed statement today.
The firm will invest in companies across the Nordic region and continental Europe in industries including health care and financial services. Nordic Capital’s seventh fund of 4.3 billion euros in 2008 generated a 4.2 percent internal rate of return, putting it in the third quartile, or second worst-performing 25 percent, of 47 funds in its peer group, data compiled by Bloomberg show.
Nordic Capital’s third-quarter report sent to investors and seen by Bloomberg News shows the seventh fund is generating a net IRR of 7.7 percent and is valued 40 percent above its original cost. A Nordic spokeswoman declined to comment.
Data is compiled by Bloomberg from publicly available records such as the Washington State Investment Board’s private-equity report. Such data may be skewed by factors including foreign-exchange movements, according to a person with knowledge of the matter, who asked not to be identified because the information is private.
MVision Private Equity Advisers Ltd. acted as exclusive global fundraising adviser for Fund VIII. Ropes & Gray LLP was legal counsel to Nordic Capital during the fundraising.
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