Nordic fund raises €236m

Norwegian mid-market player Norvestor Equity has closed Fund V on €236m, almost €80m more than its predecessor.

Norvestor V raised capital from more than 30 investors, both new and existing, both Nordic and international. The largest portion of commitments came from fund-of-funds (24%), followed by family offices and foundations (22%), insurance companies (21%), pension funds (12%), banking groups (12%) and investment managers (9%).

Fund IV closed on €157m back in 2004, and Fund V will continue to follow the same investment strategy, namely by making investment of between €10m and €45m in companies with enterprise values between €20m and €125m. The fund will focus on Norwegian growth businesses, but also those that have the potential to become a leading pan-Nordic or international operation.

The new fund has made three investments to date. In December last year it created Nordic Vision Clinics through the merger of three laser surgery eye clinics. In June 2008 it bought a 70% stake in RenoNorden, a waste collection specialists, and in July it acquired a 70% interest in Wema Grou, a supplier of high-quality diesel to the heavy truck industry.

Norvestor V is the fifth private equity fund based in the Nordic region to close this year according to Thomson Reuters data. CapMan closed a hotel’s fund, raising over €830m, fund-of-funds Danske Private Equity Partners raised €550m for its fourth offering, FSN Capital III closed on approximately €400m, and HitecVision Private Equity V raised US$800m.