Nordic Capital has announced the successful first and final close of its first Evolution Fund at just over €1.2 billion (including GP commitment of 6.8%). Launched in April 2021 and raised in only three months, the Fund was substantially oversubscribed at its hard cap and significantly exceeded its target.
With the Evolution Fund, Nordic Capital will build on its long and successful investment experience in the mid-market, applying its value creation model to a broader size range of mid-market companies in its selected sectors and geographies, leveraging its own expertise and extensive expert networks.
Focusing on control buyouts, the new Fund will target equity investments across Northern Europe of between €35 million and €150 million in mid-market companies with an EV of €50 million to €300 million. It will closely replicate Nordic Capital’s established and successful strategy focusing on non-cyclical growth opportunities within the Healthcare, Technology & Payments and Financial Services sectors.
The Evolution Fund will also continue Nordic Capital’s strong ESG focus, where Nordic Capital has received the highest ESG rating from the UNPRI. With a clear commitment to making a positive contribution to society by helping to build strong sustainable companies, the Fund will promote environmental, social, and good governance practices, among other objectives.
The new Fund is advised by a dedicated team, led by Joakim Lundvall, Partner, Nordic Capital Advisors, and comprises a mix of experienced investment professionals from Nordic Capital Advisors and seven newly recruited team members. The team will also draw on Nordic Capital Advisor’s wider organisational offerings, including its operational and sector focused expertise and well-established regional network.
Nordic Capital has a strong 30-year history of investing in and successfully growing and developing mid-market companies. This, combined with its focus on attractive niches where it is well embedded, means that the new Fund already has a strong deal pipeline. The first portfolio company in the Evolution Fund will be Boost.ai, a global leader in conversational AI for Fortune 1000 companies, an investment completed by Nordic Capital in April 2021.
Nordic Capital Evolution attracted investors from across the globe, including 57% from Europe, 19% from Asia, 19% from North America, and 5% from the Middle East. The investor base comprises a well-diversified mix of institutional investors: asset managers and advisers (c.40%); public and private pension funds (c.30%); sovereign wealth funds (c.20%) and endowments and family offices (c.10%).
We are delighted to have supported Nordic Capital on this raise.