IK Investment Partners Ltd., the former venture unit of Stockholm-based SEB AB (SEBA), has raised more than half of the 1.7 billion euros ($2.3 billion) it is seeking for its seventh European buyout fund, according to a person with knowledge of the matter.
The firm informed investors it will announce a so-called first close this month, four months after formally starting fundraising, according to the person, who declined to be identified because the matter is private. A first close will enable it to start spending the money.
IK, based in London, joins Stockholm-based EQT Partners AB and London-based BC Partners Ltd. in securing money just as investors commit less and to fewer funds. BC Partners said last week it amassed 6.5 billion euros for buyouts in Europe, surpassing its target thanks to demand from sovereign wealth funds in the Middle East and Asia. L Capital, the Paris-based private-equity firm backed by LVMH Moet Hennessy Louis Vuitton SA (MC) and Groupe Arnault SAS, raised 400 million euros, 50 million euros more than its target, it said today in a statement.
IK, which manages about 5.7 billion euros, returned 1 billion euros to backers last year, said the person. IK plans to distribute another 200 million euros, or 2.3 times its original investment, selling Europris AS, a Norwegian discount retailer, to Nordic Capital Svenska AB, the person said. A spokeswoman for IK declined to comment.
IK’s most recent fund, which raised 1.68 billion euros in 2007, was generating a 13 percent gross internal rate of return and a 1.2 times multiple of the acquisition cost as of June 30, investors who asked not to be identified because the information is private said previously. The fund has acquired companies ranging from Hansa Group, a German manufacturer of bathroom and kitchen fittings, to Agros Nova, a Warsaw-based food-processing company. The firm targets companies in northern Europe countries including France, according to its website.
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