Nordic Capital Continues to Grow as Europe's Largest Fund

Nordic Capital is a force to be reckoned with in the European private equity scene. Founded in 1998, the firm has been steadily growing its reputation and portfolio over the years.

The firm's growth can be attributed to its unique approach to investing, which focuses on partnering with experienced entrepreneurs and management teams to drive growth and value creation. This approach has allowed Nordic Capital to build a diverse portfolio of companies across various industries.

With a strong track record of success, Nordic Capital has become Europe's largest fund, with a significant presence in the market. The firm's ability to adapt to changing market conditions and its commitment to long-term value creation have been key factors in its success.

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Nordic Capital has been quite active in the past year, with several notable acquisitions and investments. In November 2024, the company acquired US-based IP management software company Anaqua for approximately $3 billion.

The acquisition is expected to close by the first quarter of 2025, subject to approval from the relevant regulatory and antitrust authorities. This is not the only significant deal Nordic Capital has made recently, as they also acquired a controlling stake in Max Matthiessen for over $1 billion in the same month.

Nordic Capital has also been exploring potential sales or IPOs for some of its portfolio companies, including fintech company Trustly, which is on track to process $100 billion in Total Payments Value for the year, representing a 33% year-over-year growth.

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Nordic Capital has been quite active in recent times, acquiring several companies and exploring potential sales or IPOs. In November 2024, they acquired US-based IP management software company Anaqua for approximately $3 billion.

Nordic Capital's portfolio is expanding rapidly, with Clario, a US-based healthcare software company, confidentially filing for an IPO in June 2024, targeting a valuation of more than $10 billion. This is a significant milestone for the company.

In October 2024, Nordic Capital was reportedly exploring a potential sale or IPO of fintech company Trustly that could value the portfolio company at over $10 billion. Trustly is on track to process $100 billion in Total Payments Value for the year, representing a 33% year-over-year growth.

Nordic Capital has also been exploring other opportunities, with Hargreaves Lansdown agreeing to be taken private for $7 billion by Nordic Capital and CVC Capital Partners in August 2024.

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Nordic Capital XI is the largest fund raised in the firm's history, raking in about €3bn more than its 2020-vintage predecessor.

Fund XI held a €7.9bn first close in May and comes off the back of the firm's debut mid-market vehicle.

Nordic Capital XI is already more than 29% larger than its 2020-vintage predecessor, which raised €6.1bn against a €5bn target.

This fund is set to surpass its predecessor, which was already a significant achievement.

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Nordic Capital has a significant investment portfolio, with funds managed in various sectors. They have a history of large fund sizes, including Nordic Capital XI, which was worth $10 billion in 2023.

Their funds have also had notable close dates, such as Nordic Capital Evolution Fund II, which closed in December 2024. They have a large network of external experts, with over 100 contacts.

Here are some notable Nordic Capital funds:

Nordic Capital has a history of raising large funds, with their latest one being Fund XI, which held a €7.9 billion first close in May.

This fund is Europe's largest this year, and it comes after the firm's debut mid-market vehicle. Nordic Capital has a track record of successfully managing funds, with their most recent ones being Fund X ($7 billion) in 2020 and Fund IX ($5 billion) in 2018.

In fact, Nordic Capital has been raising increasingly larger funds over the years, with Fund XI being the largest at $10 billion, followed by Fund X at $7 billion, and Fund IX at $5 billion.

Here's a brief look at some of their notable funds:

Nordic Capital's Fund XI has reached a massive €8bn, a testament to its success and appeal to investors.

This fund is the largest raised in Nordic Capital's history, surpassing its predecessor by about €3bn.

Nordic Capital XI is also Europe's largest fund this year, with a €7.9bn first close in May.

Fund XI is more than 29% larger than its 2020-vintage predecessor, which raised €6.1bn against a €5bn target.

This significant growth is a strong indicator of the firm's ability to attract investors and manage funds effectively.

Nordic Capital implements meticulously designed transformation plans to accelerate companies' development and value creation within its investment portfolio.

The firm benefits from unique scale effects due to the large number of transactions carried out in a limited number of sectors.

Nordic has developed considerable expertise, enabling it to rapidly identify value-creation levers through pattern recognition.

The company relies on a large in-house operational team of 17 employees and a network of over 100 top-quality external experts.

Nordic Capital XI is the largest fund raised in the firm's history, raking in about €3bn more than its 2020-vintage predecessor.

The sheer size of Fund XI is a testament to the firm's success and reputation in the industry.

At €9bn, Fund XI is a substantial investment, and it's likely that Nordic Capital will be looking to make strategic and impactful investments with this capital.

Nordic Capital has a strong track record of delivering returns to its investors, and Fund XI is no exception.

This fund represents a significant increase in investment power for the firm, allowing them to pursue more ambitious opportunities.

Nordic Capital focuses on in-depth sectoral approaches, investing in companies with growth potential in specific industries.

The firm has identified three main verticals: Healthcare (around 40%), Tech & Payments (around 40%), and Financial Services (around 20%).

Within these sectors, Nordic Capital has pinpointed niche sub-sectors to target for investment.

In the United States, Nordic Capital invests exclusively in the HealthTech sector, where it has extensive experience.

The company's sectoral approach allows it to develop significant expertise and rapidly identify value-creation levers, thanks to its large in-house operational team and network of top-quality external experts.

Nordic Capital's sectoral specialization enables it to benefit from unique scale effects, streamlining its investment process and enhancing its ability to accelerate companies' development and value creation.

At Nordic Capital, research is a key part of the investment process. They use in-depth company profiles that include cleaned financials, ESG ratings, and data on similar companies.

These profiles are equipped with all the necessary data and insights to effectively evaluate a company as a potential investment opportunity. This helps Nordic Capital make informed decisions.

By using these profiles, Nordic Capital can quickly and efficiently conduct private company research. This saves time and resources, allowing them to focus on other important tasks.

Their thorough approach to research is a major advantage in the investment world. It gives them a competitive edge and helps them identify potential opportunities.

Nordic Capital has made significant investments in various sectors, including healthcare and technology. The firm has a proven track record of delivering strong returns to its investors.

In 2020, Nordic Capital invested in a leading dental care company, which has since expanded its services to over 10 countries. This investment demonstrates the firm's ability to identify and capitalize on growth opportunities.

Nordic Capital's commitment to innovation is evident in its investment in a cutting-edge medical technology company, which has developed a revolutionary new product that has improved patient outcomes.

Nordic sees changes to its investor relations team, with Partner and head of IR Pär Norberg stepping down from his role.

Pär Norberg will be leaving his position, marking a significant change for the team.

The firm's EMEA IR head will also be departing after a period of maternity leave, adding to the team's recent shifts.

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