Euroventures and Nordico, two of Sweden’s major mid-market players have joined forces and have already secured commitments for a new fund. The firms both have similar investment strategies in corporate buyouts and expansion capital investments in medium-sized companies in both the manufacturing and service sectors. The merger will give the combined group a larger critical mass both financially and in terms of management expertise. The Stockholm-based firm, to be renamed at a later date, will also open an office in Copenhagen to strengthen its presence in the Danish market. The new group will have 16 employees, including 12 partners.
Total funds under management of the combined businesses amounts to over €500 million. The firm aims to raise between €200 million and €300 million for its new fund in the next year. The Sixth AP Fund and Dansk Kapitalanlaeg, both existing investors in Nordico’s and Euroventures previous funds, will contribute the initial €50 million. At its first closing, scheduled for June, the fund is aiming for a target of around €100 million.
The new CEO of the merged entity will be Nordico’s current CEO, Jan Ohlsson. Euroventures’ current CEO, Thomas Wernhoff will become deputy CEO.
Jan Ohlsson said: “By the merger of Euroventures and Nordico, we are creating one of the leading players in the mid-segment of the Nordic private equity market. we are bringing together complementary industrial and financial competencies and experience. Together we will create an efficient organisation, which will result in a low management cost for our investors.”