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Nordic Industri Kapital reportedly struggling to raise buy-out mega-fund

30 May 2003

Nordic private equity firm Industri Kapital has raised just 20 per cent of its target E2.5bn with only a month to go before the fund's first close, according to the Financial Times. Industri Kapital joins a growing number of European mega-funds that have struggled to reach fundraising targets in recent months.

The Nordic region’s largest buy-out firm has so far raised just $500m in an intensely competitive fundraising environment, despite undergoing a lengthy 12 month marketing campaign prior to launch, the FT reported.

This is Industri Kapital’s fifth foray into the fundraising arena. The firm’s previous fund closed at E2.1bn in 2000, and had secured E700m at the first close.

The negative impact of a global economic downturn and subsequent fierce competition for scarce funds, has been compounded for Industri Kapital by issues with its track record and the departure of a key investment executive, Harald Mix.

But Industri Kapital is not alone in experiencing tough times. UK-based firm Doughty Hanson is also reportedly falling short of expectations approaching its first close and Guy Hands’ Terra Firma and Charterhouse have both recently been forced to lower their fundraising targets.

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