FSN Capital Partners closes new SEK 5.25 billion (€600 million) Nordic mid-market buyout fund
FSN Capital Partners (“FSN”), a leading pan-Nordic mid-market private equity firm, is pleased to announce the final closing of its latest fund, FSN Capital IV, with SEK 5.25 billion (€600 million) of commitments. The fund was substantially oversubscribed.
The Fund’s investors comprise a well-diversified group including public and private pension funds, insurance companies, sovereign wealth funds, foundations, endowments, government agencies, asset managers, banks and funds of funds. FSN has significantly broadened its international investor base, with new LPs secured from Asia, Australia, Canada and the United States. 21% of the total capital raised for FSN Capital IV came from LPs based in North America, 14% from Asia including Australia, and 30% from Europe excluding the Nordic region. The Fund attracted strong support from the Nordic LP community, with leading LPs from all four Nordic markets accounting for the remaining 35% of capital raised.
FSN Capital IV held its final close on November 19th at its hard cap of SEK 5.25 billion (€600 million), exceeding the SEK 5 billion (€565 million) target. FSN’s previous fund, FSN Capital III, closed in 2008 at €375 million. Fundraising for FSN Capital IV was concluded for all but one investor by the end of September, two months after the first closing and only six months from the issue of the Private Placement Memorandum in March.
“We are delighted to have been able to close our new fund at its hard cap and on timetable in what remains a challenging fundraising environment”, said Frode Strand-Nielsen, Managing Partner of FSN. He added: “We feel privileged to have been able to welcome a number of leading, blue chip investors from around the globe as new limited partners”.
FSN Capital IV will continue FSN’s highly successful investment strategy of targeting control buyout investments of Nordic mid-sized growth-oriented companies operating in Sweden, Denmark, Norway and Finland where FSN believes it can generate long-term alpha returns for its investors. It will target companies with enterprise values typically between SEK 400 million and SEK 2 billion (approximately €50 million to €250 million) and operating in a broad range of industries and markets. Through active ownership FSN strives to support the companies’ transformation to become more competitive, international and profitable entities.
“With this new fund we will continue our pan-Nordic approach to the middle-market through our on-the-ground presence in Sweden, Denmark and Norway”, commented Peter Möller, Partner in the FSN Investment Team, adding “We continue to see a large number of attractive investment opportunities and are highly confident of delivering superior returns to our investors”.
Campbell Lutyens & Co. Ltd acted as sole global placement agent for the offering. Simpson Thacher & Bartlett and Carey Olsen provided legal counsel for FSN Capital IV.