Private equity fundraising in the Nordics has bounced back from the 2023 trough to a 10-year high. However, LPs continue to focus on the few managers with the most experience as exit activity remains subdued.
The more than €30 billion (around $33.3 billion) raised by funds in the Nordic region, as of Sep. 11, not only represents a seven-fold increase from 2023’s total but also beats the record €27.2 billion that was raised in 2021, according to PitchBook data.
Fund counts are also on the rise with 17 vehicles closed so far this year, compared to 14 in 2023.
EQT X, which closed in February after extending its fundraising deadline for six months, beat its initial target to close on €22 billion, making it the largest Nordic fundraise in the past decade.
Another Swedish firm Altor also broke its own record to collect €3 billion for Altor Fund VI which invests in mid-market companies in the Nordic and DACH regions.
Both of the funds came from established fund families.
With the exit environment remaining subdued and interest rates at a higher level, LPs have less capital for new commitments. As a result, investment decisions are often inclined toward managers with established track records.
LPs also intend to go back to the basics in terms of investment strategies.
Almost all capital raised this year went to buyout funds with growth/expansion vehicles only comprising 1.7% of the fundraising total after gaining some momentum in 2022.
General views of the Stockholm city skyline at sunset.
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