Altor held a single close of Altor Fund IV on 3 July 2014 at its target size and hard cap of EUR2 billion.
Altor was advised on the fund’s formation by Ashurst.
"This has been a remarkable fundraising," says Ashurst funds partner Piers Warburton. "It has been characterised by enormously strong demand from investors and the adoption of a new onshore fund structure, but also by the continuation of the business model and core fund terms that have driven Altor's previous success. By adopting an onshore structure for the new fund, with a fund manager regulated in Sweden, Altor has shown its ability to adapt its business to reflect a changing environment in the Nordic region. The success and speed of the fund-raising clearly demonstrates its investors' commitment to the Altor model."
The vast majority of the capital has been committed by existing investors, with only a select group of new investors being invited. The investor base consists mainly of US university endowments, charitable foundations and pension funds. Nordic investors represent 20 per cent of total commitments, with the remaining capital coming from the US, Europe, Middle East and Asia.
The new fund will, like the previous Altor Fund III, have a 15 year term. The extended term allows Altor to invest in companies where a longer investment horizon is warranted. The new fund also has a flexible investment mandate, which allows for minority investments in publicly traded companies and distressed debt. The overall ambition remains the same as for all previous Altor funds: to create value and generate superior returns by building world-class companies.
The new fund uses a Swedish corporate structure and the Altor fund manager is regulated as an Alternative Investment Fund Manager by the Swedish Financial Supervisory Authority.
