Nordic Capital Partners has announced the successful final close of its latest fund, Nordic Capital Fund XI, reaching its hard cap of €9 billion. This landmark achievement, exceeding its initial €8 billion target, marks Nordic Capital’s largest fund to date and underscores the robust confidence investors place in Nordic Capital Partners’ strategic approach and sector expertise. The fund, one of the largest and most rapidly secured private equity funds in Europe this year, closed in just nine months amidst a challenging fundraising environment, highlighting the firm’s strong reputation and investor appeal.
Record-Breaking Fundraise Reflects Market Leadership of Nordic Capital Partners
The overwhelming success of Nordic Capital Fund XI is particularly noteworthy given the headwinds faced in the current private equity landscape. Achieving a €9 billion close, significantly surpassing the €8 billion target, demonstrates the exceptional market position of Nordic Capital Partners. This fund is over 45% larger than its predecessor, Nordic Capital Fund X, which closed at €6.1 billion in 2020, showcasing a substantial growth trajectory and increasing investor appetite for Nordic Capital’s offerings. The rapid nine-month fundraising period, coupled with a near 100% re-up rate from existing limited partners, speaks volumes about the trust and satisfaction investors have in Nordic Capital Partners’ ability to deliver consistent, high-value returns.
Investor Confidence Driven by Nordic Capital Partners’ Focused Strategy
The remarkable fundraise for Nordic Capital Fund XI is underpinned by strong demand from a diverse global investor base. These blue-chip institutions, both returning and new, are attracted to Nordic Capital Partners’ clearly defined and consistently executed investment strategy. This strategy emphasizes a focus on non-cyclical growth businesses, a partnership-oriented approach with management teams, and a deep commitment to operational improvement. In an era of macroeconomic uncertainty, the proven resilience and strong performance of Nordic Capital Partners’ existing portfolio have further solidified investor confidence. Nordic Capital’s dedication to ESG principles and its track record in deal generation and execution also played a crucial role in attracting significant investor commitments.
Image alt text: Nordic Capital Partners team members collaborate on investment strategy, highlighting their expertise in private equity and value creation.
Kristoffer Melinder, Managing Partner at Nordic Capital Advisors, emphasized the significance of this achievement: “The close of Nordic Capital’s largest ever fund is a significant milestone for Nordic Capital. To have secured such strong commitments from both new and returning investors and robustly exceeded the fund target size in some of the most challenging fundraising conditions in private equity history is a great achievement for the team.” He further noted the strategic growth of the fund size in line with Nordic Capital’s focused investment strategy and strong deal pipeline, reinforcing the firm’s ability to create value even in challenging economic climates.
Strategic Sector Focus and Global Ambitions of Nordic Capital Partners
Nordic Capital Fund XI will continue to leverage the deep sector expertise that defines Nordic Capital Partners’ investment philosophy. The fund will focus on core sectors including Healthcare, Technology & Payments, and Financial Services, with selective investments in Industrial & Business Services. This targeted approach allows Nordic Capital Partners to identify and capitalize on specific growth opportunities within these sectors. Geographically, the fund will primarily target mid to large-sized companies in Europe, while extending its reach globally for investments within Healthcare and Technology & Payments. This dual focus on sector specialization and strategic geographic expansion positions Nordic Capital Partners for continued success in the global private equity market.
Portfolio Strength and Future Investments for Nordic Capital Partners
Nordic Capital Partners boasts a robust portfolio that has demonstrated impressive performance. Current portfolio companies have achieved an average of 11% organic employment growth in 2021, alongside a 12% average annual sales increase and a 15% increase in EBITDA per year since Nordic Capital’s initial investment. This strong portfolio performance validates Nordic Capital Partners’ operational improvement and value creation strategies. Fund XI has already made three strategic investments, partnering with companies like RiskPoint Group, Equashield, and Cary Group, each aligning perfectly with Nordic Capital’s sector-focused approach. These early investments demonstrate the fund’s commitment to deploying capital in high-quality assets with strong growth potential.
Image alt text: Nordic Capital Partners’ global investment reach, showcasing their focus on Europe, North America, and Asia in key sectors like technology and healthcare.
Pär Norberg, Partner and Head of Investor Relations at Nordic Capital Advisors, expressed gratitude to the investor base: “We would like to express our sincere gratitude to Nordic Capital’s truly global investor base. The fundraise of EUR 9 billion over nine months for Fund XI was made possible with the overwhelming continued support from our long-standing existing investors, with a c.100% re-up rate and strong backing from new investors…” This sentiment underscores the collaborative relationships Nordic Capital Partners fosters with its investors and the shared enthusiasm for future successes.
Conclusion: Nordic Capital Partners Poised for Continued Success
The successful closing of Nordic Capital Fund XI at its hard cap of €9 billion is a testament to the strength, strategy, and investor confidence in Nordic Capital Partners. This record-breaking fundraise, achieved in a remarkably short timeframe and amidst challenging market conditions, positions Nordic Capital Partners for continued leadership in the private equity industry. With a focused sector approach, a proven value creation strategy, and a strong global investor base, Nordic Capital Partners is well-equipped to deliver attractive returns and further solidify its reputation as a premier private equity investor.
About Nordic Capital
Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested more than EUR 21 billion in 130 investments. The committed capital is principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, the UK, the US, Germany, Denmark, Finland, Norway and South Korea. For further information about Nordic Capital, please visit www.nordiccapital.com
Press contact:
Nordic Capital
Katarina Janerud, Communications Manager
Nordic Capital Advisors
Tel: +46 8 440 50 50
e-mail: [email protected]
