Nordic Capital has wrapped up the fundraising for its 10th buyout fund with €6.1bn in total commitments.

The vehicle, the firm’s largest capital pool to date, has considerably surpassed its initial €5bn target within just six months. Launched in April this year, the fund was entirely raised remotely amid the pandemic, without any face-to-face meetings, the firm said.

The successful fundraising comes at a time when fund closings have slowed down due to the pandemic travel restrictions and the economic downturn. Globally, 552 private equity funds reached their final close in the first half of the year, 31% fewer than in the same period last year, according to data provider Preqin.

“We launched this fund in the middle of a global pandemic, which required investors to completely alter their investment processes to enable remote diligence. The success of the fundraise despite these challenges reflects the investors’ considerable confidence in Nordic Capital’s strategy and team,” Pär Norberg, head of investor relations of Nordic Capital, said.

Most of Nordic Capital Fund X investors are from North America, followed by Europe, Asia, and the Middle East. The firm’s existing portfolio performance since the Covid-19 pandemic started was one of the reasons for the strong appeal, the firm noted in a statement.

The fund, which sealed its first deal earlier this month, with the acquisition of Danish software business Siteimprove for €500m, focuses on mid-market companies primarily based in Europe. Its main targeted sectors are healthcare, technology and payments, financial services, industrial and business services.

Apart from the European focus, the strategy has a mandate for global investment in healthcare as in the previous fund and an emerging smaller global mandate also for technology and payments businesses.

“The economic impact of the Covid-19 pandemic will continue to be felt for some time and the most successful fund managers will be those who respond well to emerging trends and market dynamics to leverage new opportunities,” Kristoffer Melinder, the firm’s managing partner, added.

Since its inception in 1989, Nordic Capital has invested more than €15bn in more than 110 investments, according to a statement.

Source: Private Equity News

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