FSN, which aims to raise €800 million for the fund, held the first close on July 1, the person said. The vehicle has a €1 billion upper limit, or hard cap.
The firm is looking to collect a larger pool of money than it did for its predecessor, which closed on 5.25 billion kronor in November 2013. It started pre-marketing the latest fund in December and hired placement agent Campbell Lutyens to advise on the fundraising.
The fundraising close comes at a time when investors are showing insatiable appetite for Scandinavia, which for many years has proved popular because of its stable economic growth, its strong entrepreneurial culture and solid banking system.
As a result, the best known fund managers in the Nordics have been able to raise capital fast. EQT Partners, one of the largest buyout firms in Scandinavia, raised its largest pool of capital yet when it closed its latest buyout fund on €6.75 billion in August 2015. It had originally targeted €5.25 billion but encountered demand for twice that figure.
Lower mid-market firm Norvestor Equity came to market with its one billion Norwegian kroner (€110 million) seventh fund before summer 2015 and was fully allocated by December, while Valedo, which began fundraising for its latest two billion Swedish kronor vehicle in October 2015, was also subscribed.
The fundraisings mean there is a lot of capital chasing deals in Scandinavia. One investor told Financial News that the Nordics was a small market: “There’s not a huge amount of deal flow and there’s a lot of competition.”
But Alireza Etemad, a partner at IK Investment Partners, said in June that while private equity firms are sitting on large cash piles to invest in Scandinavia, “at the same time there are a lot of opportunities”.