Kaupthing expands private equity fund

Kaupthing, the Icelandic investment bank which backed the £817m (€1.2bn) takeover of the UK’s Matalan discount retailer last year, has raised £500m for its latest private equity fund, Kaupthing Capital Partners II. The bank committed £200m (€294.5m) from its balance sheet, giving it a 40% share of the fund, but also raised third-party capital for the first time, garnering £300m (€441.8m) primarily from pension funds, investment companies and high net worth individuals. Kaupthing said that it originally targeted £100m to £200m from institutional investors but had to raise its fund size due to excess demand and that the fund was oversubscribed. KCPII is expected to make a final close shortly and will not hold assets owned by the bank at the end of last year.