Nordic Capital, a private-equity firm that invests in Northern Europe, is offering a 1.5 percent management fee for a buyout fund that seeks to raise 4 billion euros ($5.3 billion), according to a marketing document.
The fee for Nordic Capital Fund VIII is the same as for the prior fund, Fund VII, which raised 4.3 billion euros in 2008, according to a person with knowledge of the fund, who asked not not be named because the information is private. The new fund has a so-called hard cap, or limit, of 4.5 billion euros, according to the marketing document, which was reviewed by Bloomberg News.
EQT Partners AB and Cinven Ltd. have offered discounts on management fees to secure money for an initial round of commitments known as a first close. Nordic Capital, based in Stockholm, has decided against offering discounts for investors that commit during the first close, according to the documents.
MVision Private Equity Advisors, based in London, is serving as placement agent for the new Nordic fund, according to the marketing document. A spokeswoman for Nordic Capital declined to comment.
Nordic’s eighth fund will make private-equity investments across industries in the Nordic region and Germany, and health care buyouts all over Europe.
The prior fund, Nordic Capital Fund VII, has not exited any investments, according to the marketing materials. Nordic Capital said in its documents that on a capital-weighted basis, that fund is just over two years old.
Fund VI Exits
The sixth fund, which primarily invested during 2006 and 2007, was valued at 1.2 times the cost of investments made as of the fourth quarter, according to the documents. The fund, which has realized 19 percent of the capital invested, has returned 1.2 billion euros to investors.
Nordic Capital exited five investments last year which generated gross proceeds of 4.4 billion euros from Atos Medical, a voice prosthesis; Falck A/S, a Danish provider of emergency and assistance services; FinnvedenBulten, a Swedish engineering group; Nycomed, a Swiss pharmaceutical company; and Point, a provider of electronic payment services, the documents show.