Nordic Capital closes Fund XI on €9bn

Nordic Capital closes Fund XI on €9bn

Nordic Capital has announced the completion of Nordic Capital Fund XI, the firm’s largest fundraise to date. The Fund closed at its hard cap of €9 billion, exceeding its €8 billion target. Raised against a highly competitive and challenging fundraising backdrop, Fund XI closed just nine months after launch, making this was one of the largest and fastest European private equity fundraises of 2022 to date.

With a high re-up rate and c.€2.5 billion in new money commitments, Nordic Capital Fund XI is over 45% bigger than its predecessor large-cap fund (Nordic Capital Fund X), which raised €6.1 billion in October 2020.

Fund XI saw strong demand from investors, attracted by Nordic Capital’s focused investment strategy of investing in non-cyclical growth businesses in resilient, repeat subsector niches, and its operational improvement capabilities. The investment strategy has been validated by the strong performance and resilience of the existing portfolio despite challenging macro-economic conditions. Nordic Capital’s deal generation and execution capabilities, as well its clear commitment to ESG also proved highly attractive to investors. Sourced via its selective, sector-based origination process, the Fund has already signed three investments: RiskPoint Group, Equashield and Cary Group.

Fund XI attracted investors from every continent across the globe, with 34% of commitments from North America, 31% Europe, 23% from Asia, 10% from the Middle East and 1% from RoW. The investor base comprises a well-diversified mix of institutional investors: public and private pension funds (c. 42%); sovereign wealth funds (c. 23%); fund of funds (c.14%); endowments and family offices (c.11%) and financial institutions (c.10%).

Rede Partners is proud to have once again supported Nordic Capital as global placement adviser. Beginning in 2018, our wide-ranging relationship with Nordic Capital has included two fundraises, the raise of Nordic Capital’s debut mid-market fund, Evolution, as well as strategic advisory work – representing an aggregate of over €16bn capital raised across all three funds in under four years. We extend our warmest congratulations to the whole team at Nordic Capital on this outstanding achievement and look forward to our continued partnership.

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