Dania Capital, a new DKK600m (€80m) fund focused on investing in the building and construction industry in Denmark, has launched this month. The fund has a cornerstone investment from Fonden Realdania and is in talks with institutional investors as it has the option to double the current fund size.
The fund’s sponsor, Fonden Realdania, has provided 99% of Dania Capital’s current total with the remainder coming from the firm’s four partners. The team has a mix of experience in private equity, the building and construction industry, corporate strategy, operations and corporate finance. Thomas Dywremose, formerly with Fonden Realdania is managing director, Jørgen Jensen (ex-Deloitte & Touche), Søren J. Nielsen (ex-Danske Private Equity), Thor Hvid (ex-Carnegie Investment Bank) and Anja Eriksson (ex-Goldman Sachs) complete the team.
Fonden Realdania is a Danish charitable foundation which manages assets of DKK21bn and receives annual donations of DKK200m. Its objective is to support activities in areas including urban improvement, better housing and building, heritage preservation and improving information on architecture, design and craftsmanship. The foundation is looking for a commercial return from its investment in Dania Capital.
The fund expects to invest in five or six small or medium-sized companies with annual revenues of DKK100m to DKK500m (€15m to €75m). The focus is on the building and construction sector, in particular companies in specialist component production. Dania Capital is looking to make majority investments with management teams in expansion or consolidation situations and hopes to take advantage of deal opportunities arising from generational change. The fund has a life span of ten years and expects to hold each company for between three and seven years.
Last year EVCA recorded just one investment in the construction industry in Denmark but earlier this year CVC backed the €750m public-to-private takeover of Danske Trælast, which retails and distributes building materials and DIY products in the Nordic region.