Danish buyout firm Polaris Private Equity has held its first close on Polaris Private Equity Fund III at €275m.
With a focus on Denmark and Sweden, the fund will invest in small and medium-sized industrial and service sector businesses.
Commitments for Polaris Private Equity III are coming from a combination of existing investors and new investors. Existing Danish investors include AP Moller Maersk, Danske Bank and ATP Private Equity Partners. New Danish investors backing the fund include Salling Fonden, FIH, Primo Holding and C.L. Davids Fond og Samling.
A number of international investors are also backing the deal including the private equity arm of Alliance Trust Equity Partners (Scotland), ACG Private Equity (France) and Euro Private Equity (Switzerland).
Managing partner at Polaris, Jan Johan Kuhl, said: “Having reached more than €275m at first closing and with prospects of additional commitments from more investors as we approach the final closing later this year, we stand well prepared to continue growing in a market offering good opportunities for new investments and add-on investments for our existing portfolio business.”
Polaris’ first fund closed at approximately €190m and is fully invested and fully exited. Private Equity Fund II has holding commitments of approximately €270m and has taken stakes in ten companies and has allocated funds for follow-ons to these portfolio businesses.