IK Investment Partners (IK), a European private equity advisory group with Nordic roots, has closed its first fund focused on the small cap market, the IK Small Cap I Fund (“IK Small Cap I” or “the Fund”), at its hard cap.
The fund received strong support from existing and new investors, with total commitments of EUR277 million.
“The confidence expressed by investors demonstrates the appreciation of IK’s active ownership model focused on growth, internationalisation, professionalisation and operational improvement applied to the small cap space on a European scale,” says Christopher Masek, CEO at IK Investment Partners.
IK Small Cap I is a natural extension of IK’s offering, as it addresses a segment which the Firm invested in during the 1990s and early 2000s, thus building on the Firm’s established track record. The Fund will target businesses of less than EUR100 million in value in IK’s core markets: Benelux, DACH, France and Nordics. The small cap team will be led by three partners, Kristian Carlsson Kemppinen, Pierre Gallix and Anders Petersson, all of whom have extensive experience in the private equity industry.
“We have been seeing a large number of small cap opportunities across IK’s markets, and we believe access to the platform, relationships, knowledge and resources from the wider IK organisation means that the Fund is well-positioned to support management teams in unlocking potential and realising growth,” says Anders Petersson, Partner at IK Investment Partners, and advisor to the Fund.
“Many of these companies are founder-owned and will be facing succession issues in the coming years. Furthermore, many lack activities outside of their home country. We thus see a significant opportunity for IK to internationalise these companies, and help with family succession,” Pierre Gallix, Partner at IK Investment Partners, and advisor to the Fund, adds.
“We have established a dedicated investment and operations team containing existing IK team members and experienced hires for the IK Small Cap I, integrated within the IK organisation, allowing us to leverage our existing network and footprint,” says Kristian Carlsson Kemppinen, Partner at IK Investment Partners, and advisor to the Fund.
IK Small Cap I has to date made three investments, all leveraging IK’s previous experience; svt Group, a provider of solutions for preventative or passive fire protection and damage management in Germany; Auxiga Group, a French and Belgian leader of pledge inventory services; and TCM Group, a Scandinavian producer of quality kitchens.
Campbell Lutyens acted as global placement agent and Macfarlanes LLP was legal counsel to the IK Small Cap I Fund.
