Altor breaks into the €1bn club

Altor, the Nordic buyout firm launched by Harald Mix in 2003, has closed its second fund on €1.15bn. The vehicle will continue to invest in mid-market Nordic companies, where it has led the way during the last three years.

More than 50 investors have committed to Altor’s second fund. The investor base includes Harvard Management Company, Princeton University, Goldman Sachs Private Equity Group, Pantheon, AlpInvest, Länsförsäkringar Liv, Skandia Liv, Allianz Private Equity Partners and Standard Life Investments (Private Equity). Nordic investors represent 25% of total commitments, other European investors 35% and US investors the remainder.

“We are very pleased with the quality of investors in our second fund”, said Harald Mix, partner at Altor Equity Partners. “The fact that practically all Fund I investors have chosen to invest with us again is proof that we have delivered on our original strategy.

It is also positive to note that because demand for the fund was so great, the fundraising process only lasted two months, a significantly shorter period of time than anticipated.”

The new fund comprises €900m in base commitments and €250m in top-up commitments, which will serve primarily to develop portfolio companies.

Altor will continue to focus on making investments in medium-sized Nordic companies with turnovers in the region of €50m–€500m.

Altor’s first fund closed in May 2003 with commitments of €650m. The fund has completed 12 platform investments and almost as many add-on acquisitions for the portfolio companies.

Since 2003, Altor has built an investment organisation consisting of 17 people from all the Nordic countries. The organisation is led by Harald Mix and the other partners are Johan Cervin, Fredrik Strömholm, Denis Viet-Jacobsen, Hugo Maurstad and Stefan Linder.

“Our portfolio has developed very strongly, as a result of an intensive change programme and several add-on acquisitions. With our larger investment organisation in place, we feel well positioned to support additional Nordic companies with potential for growth and improved operating performance,” said Fredrik Strömholm, a partner at Altor Equity Partners.

The fund was placed by Helix Associates of London and Monument Group of Boston, which also advised Altor on the raising of the previous fund. Legal advice was provided by Ashurst.