Polaris holds €67m first close for debut flexible capital fund to target loan capital and minority investments


Nordic buyout investor Polaris has held a first close for Polaris Flexible Capital on DKK500m (€67.17m), just days after closing its latest flagship fund.

The firm closed its fifth flagship fund on €650m last week, six years after closing its fourth fund on €450m.

The DKK1bn (€134.3m)-targeting PFC vehicle was launched last year to make investments in subordinated loan capital and minority shareholdings, so that entrepreneurs maintain control of their business.

Firm partner Jesper Langmack, the former CIO at Danica Pension, will be leading the new fund.

He said, “Polaris has traditionally held majority ownership in the companies in which we invest, but if this is not possible, then we can now create solutions that involve capital and partnerships in another form. This gives Polaris a wider range of opportunities. We have already received inquiries from many companies that are interested in capital and partnership with the fund.”

PFC targets companies that need capital for succession, investments, geographical expansion or acquisitions and will be focusing in the Nordics with special focuses on Denmark and Sweden. It is expected to begin deploying capital this quarter.

Jan Johan Kühl, managing partner at Polaris, states, “We are delighted to have seen strong investor interest for PFC, primarily from family offices and institutional investors. We are incredibly pleased that strong profiles such as Jesper Langmack and Peter Høltermand are now making their skills, knowledge and track record available to Polaris’ investor base. It is crucial that we have a team that has already proven that they can deliver excellent results.”

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