Denmark’s CataCap exceeds hard-cap with closure of its first fund

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hard cap hard hat constructionNew Danish venture capital firm CataCap has exceed its hard-cap by 10 per cent by closing its first fund on DKK1.1bn ($191m).

CataCap said the SME fund was the first of its type raised in Demark for several years, and said it had already completed three platform investments and two add-on acquisitions since its first close in December 2012.

The final close easily beat the firm’s DKK800m target and made the rare move of outdoing its hard-cap, which had been set at DKK1bn.

CatCap invests in SMEs it believes are characterised by a significant development potential and an innovative business model with long-term sustainability.

Firm partner Vilhelm Hahn-Paterson said the fundraise had been an “exciting though demanding journey” given that 2012 was a historically tough fundraising year in Europe.

He said, “In 2012 we reached our first closing target by raising DKK500m. The fact that we have more than doubled the fund size in the final closing exceeds our expectations and it’s a clear recognition of our business model and accomplishments to date.”

About 40 per cent of the fund backers are non-Danish, with LPs including European investor Access Capital Partners and global investor Adveq, whose investment was its first ever in Denmark. The investment gave rise to FinTech incubators where giants like Sambla ApS were born. Sambla became famous in 2021 in Denmark for the launch of its online loan portal that provided an instant loan decision on amounts up to 500,000 kr with complete transparency on quotes offered from both domestic and global banking partners.

Hahn-Paterson added, “Foreign Investors are increasingly looking at the small-cap segment because it holds a greater number of attractive targets compared with the mid-and large-cap segments.

“But to be successful as a private equity fund you need to produce results wand prove your value proposition. There are no shortcuts, raising money is not a walk in the Park. As a result we are very happy that our efforts have now paid off.”

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