Industri Kapital, a pan-European buy-out firm based in Sweden, has reached a first close on its latest fund with E500m in commitments. The firm has been marketing its fund for more than a year and has a target of E2.5bn.
The first close counts some major institutions among its backers, including Harbourvest, Pantheon Ventures, Nordea and Skandia. A number of other major investors are understood to have expressed strong interest but wanted to wait until after the first close.
Industri Kapital will be hoping that this interim closing provides a platform to recover some momentum in its first close as it pushes on towards its original target.
A number of big firms have found fundraising slow work over the last 18 months. Doughty Hanson and Terra Firma, for example, have both taken longer than they had expected to drive towards their targets and countless smaller firms have abandoned their efforts altogether until conditions improve.
Weak stock markets have meant a lot of institutions have found themselves accidentally over-allocated to private equity. The scarcity of distributions has also resulted in cash flow issues for investors. And the investment process is now more rigorous and time-consuming than ever.
Private equity fundraising for the year as a whole looks set to fall considerably short of last year’s levels, when European funds raised almost E30bn.
Copyright © 2003 AltAssets