IK doubles up for 2007 Fund

Industri Kapital, a Stockholm-headquartered private equity firm, has held a final close of its sixth fund, the Industri Kapital 2007 Fund, with capital commitments of €1.675bn, more than double the size of its previous fund, Industri Kapital 2004, which closed on €825m in early 2005.

UBS was the placement agent and SJ Berwin provided legal counsel for the fundraising. According to Björn Savén, chairman and chief executive of Industri Kapital, the fundraising was completed within three months.

Limited partners in the fund comprise both existing and new investors, including endowment and pension funds, insurance companies and funds of funds located in the UK, Continental Europe, Scandinavia and North America.

LPs identified by Industri Kapital were Pantheon Ventures, Standard Life, HarbourVest, bcIMC, Skandia, SVG, Partners Group, Varma, Metlife, NYSTRS, Tapiola, AIG and Länsförsäkringar.

The new vehicle will follow Industri Kapital’s strategy of investing in medium-sized companies in the Nordic region and Continental Europe, in particular the Benelux region, Denmark, Finland, Germany, Norway and Sweden.

Over the last 12 months, Industri Kapital has made four investments including Magotteaux, a Belgian supplier of grinding media and castings used in the cement, mining, aggregate and dredging industries, and Moventas, a manufacturer of industrial and wind turbine gears as well as gear maintenance services in Finland.

Most recently, Industri Kapital bought German weighing and automation equipment manufacturer Schenk Process from HgCapital.

During the same period, the firm has also completed 10 realisations generating about €1.8bn for investors, including DYWIDAG-Systems International, a German supplier of post-tensioning and geotechnical systems, sold to CVC Capital Partners; CEVA Santé Animale, a French veterinary laboratory; Finland’s Eltel Networks; and Prevesta, a Swedish producer of prefabricated houses comprising the brands Myresjöhus and SmalandsVillan.