- Nordic Capital builds on its successful sector model and focuses on investments in more mid-sized companies in Northern Europe through its first Evolution Fund.
- Continued focus on strong partnerships with companies in key sectors at Nordic Capital to drive sustainable growth and expansion
Nordic Capital announced today that the company has closed its first Evolution Fund for just over €1.2 billion (including an investment commitment by a General Partner of 6.8%). The fund, which was launched in April 2021, was raised in just three months and significantly oversubscribed. The Evolution Fund size exceeded the target and closed at the maximum.
With Evolution Fund, Nordic Capital builds on its long experience in successful investing in mid-sized companies. Nordic Capital’s well-proven value creation model will now focus on a wide range of mid-sized businesses in specific sectors and geographies, where Nordic Capital’s existing experience and network will be a great asset.
The focus of the fund will be on the majority of investments of €35-150 million in mid-sized companies in Northern Europe with a value of €50-300 million. The focus is on Nordic Capital’s proven and successful investment strategy with a focus on driving change and creating growth opportunities for companies in the healthcare, technology, payment solutions as well as financial services sectors.
The Evolution Fund will also build on a clear focus on sustainable investments, with Nordic Capital, among others, receiving the highest rating from the United Nations-backed body UNPRI for its work on sustainability. The Evolution Fund clearly aims to contribute to society by building strong and sustainable companies. This will be done, among other things, by promoting good practices in environmental, social issues and corporate governance.
The new fund’s advisors are a strong team led by Joachim Lundvall, Partner, Nordic Capital Advisors. The team consists of a group of experienced staff from Nordic Capital Advisors and seven newly recruited staff. The team will also be able to draw on the organization’s broader experience, including operational and sector expertise and well-established regional networks.
For 30 years, Nordic Capital has successfully invested in mid-sized companies and made them grow and develop. This experience, combined with a focus on attractive sectors in which Nordic Capital has a strong position, means that the new fund has already identified a number of attractive investment opportunities. Boost.ai will be the first portfolio company to be a subsidiary of Evolution Fund, a global leader in artificial intelligence for customer conversations. The clients are Fortune 1000 and Nordic Capital completed the investment in April 2021.
Christopher Melinder, Managing Partner, Nordic Capital Advisors: “The Evolution Fund builds on Nordic Capital’s longstanding experience investing in mid-sized companies. It makes it possible to use our experience and our proven value creation model to support and grow more mid-sized businesses in different stages of growth. Nordic Capital will continue its clear focus on identifying and developing leading companies in the most attractive areas in Europe. We also focus on our development as an organization and on conducting long-term sustainability business. “
Joakim Lundvall, Partner, Nordic Capital Advisors, who leads the Evolution Fund advisory team: Sweden is known for its innovation and strong entrepreneurial spirit. More than 30 years later, we continue to see many great growth opportunities, particularly in software, financial services and fintech, which continue to be strong driving sectors for companies with global potential. By contributing expertise in product innovation, international expansion and creating long-term sustainable value, Nordic Capital looks to help more Swedish companies develop and achieve their full potential. We have a strong team and have already identified a wide range of attractive investment opportunities.”
Per Norberg, Head of Investor Relations, Nordic Capital Advisors: “We are very pleased with the strong demand for Evolution Fund from existing and new investors, and as always grateful for their support. This high demand and rapid rise in capital clearly demonstrates investors’ confidence in Nordic Capital’s proven investment model and experienced teams. It is also recognition of Evolution Fund as a natural extension for this winning group.
The Evolution Fund was in high demand at launch, with strong support from existing investors at Nordic Capital and a large number of new investors. The fund has attracted investors from all over the world and all continents, with a distribution of 57% from Europe, 19% from Asia, 19% from North America, and 5% from the Middle East. In general, investors make up a well-diversified group consisting of fund managers and advisors (about 40%), public and private pension funds (about 30%), government investment funds (about 20%), as well as foundations, etc.- called family offices (about 10%).
Nordic Capital led the capital raising process with support from Rede Partners as an advisor to the fund. Kirkland and Ellis were legal counsel with support from Carey Olsen and Arendt & Medernach.
The Evolution Fund closed just nine months after Nordic Capital closed, in just six months, Fund X at €6.1 billion.
Katharina Janrod, Director of Communications
Nordic Capital Consulting
Tel: 08-440 50 50
Email: [email protected]
About Nordic Capital
Nordic Capital is a leading private equity firm that creates strong, sustainable companies through process improvements and value-driven growth. Nordic Capital focuses on specific regions and sectors in which it has extensive experience and proven success. The main sectors are healthcare, technology, payment solutions, financial services as well as industrial and commercial services. Key regions are Europe and globally to invest in healthcare, technology and payment solutions. Since its inception in 1989, Nordic Capital has invested more than 17 billion euros in nearly 120 companies. Nordic Capital Advisors has local offices in Sweden, the United Kingdom, the United States, Germany, Denmark, Finland and Norway. For more information about Nordic Capital, visit www.nordiccapital.com
The term “Nordic Capital” refers to any or all Nordic Capital funds and their associated structures and entities. General partners in Nordic Capital funds and structures and/or authorized portfolio managers are advised by various non-discretionary advisory units, any or all of which are referred to as “Nordic Capital Advisors”.