Danske Private Equity has reached a final closing on Danske Private Equity Partners III on the original hard cap of €600m (US$755.5m).
The amount was raised from institutions in the Nordic countries. Companies within the Danske Bank Group have committed approximately 20% of Danske PEP III with the remainder coming from third party clients. There was substantial interest and the fund was significantly oversubscribed. Retaining a clear majority of existing investors, Danske Private Equity has managed to expand its client base to incorporate Danish corporate treasuries and high net worth individuals, as well as adding new institutions in both Denmark and the Nordic countries.
Danske PEP III will follow a similar investment strategy to Danske Private Equity Partners I and II, PEP III investing in privately held small and mid-size companies, through a portfolio consisting of mid-market buyout and venture funds in North America and Western Europe. This programme is already well under way with commitments made to buyout and venture funds including Clarus Life Science I, Alpha V, Altor II and Ibersuizas II. Several more funds are in various stages of due diligence.
The predecessor funds, Danske Private Equity Partners I and Danske Private Equity Partners II, which both raised €550m, are fully committed across 15 funds each. The portfolios are progressing well, with substantial distributions and strong performance in underlying portfolio companies.