Helsinki-based private equity firm Eqvitec has announced the first closing of its third mezzanine fund, Eqvitec Mezzanine Fund III, with capital of EUR64m committed by new investors as wel
Helsinki-based private equity firm Eqvitec has announced the first closing of its third mezzanine fund, Eqvitec Mezzanine Fund III, with capital of EUR64m committed by new investors as well as investors in previous funds, mostly Nordic institutional investors.
Eqvitec Mezzanine Fund III invests in small and medium-sized companies in the Nordic countries. As with the previous funds, the investment strategy of the new fund will focus on participations in buyouts, recapitalisations and financing transactions supporting organic and acquisitive growth. The target size of the fund is EUR100m and Eqvitec expects further commitments to in the near future.
‘Eqvitec Mezzanine Fund III fundraising has been a great success,’ says Eqvitec senior partner and head of mezzanine Pertti Nurmio. ‘Market conditions are very favourable for mezzanine financing and therefore we were able to attract investors for the first closing in a very short time frame, exceeding our expectations and with an amount that surpassed the final size of our second mezzanine fund.
‘To meet the growing demand for mezzanine we decided to double the target fund size compared with the earlier funds. The sector focus of the fund is also broader. Our new fund addresses the growing demand for mezzanine in small and medium-sized transactions. We operate independently in the Nordic marketplace serving private equity firms and other equity providers in their financing needs.’
Jukka Mäkinen, the firm’s managing partner, adds: ‘The mezzanine team has established itself as one of the leading players on the Nordic market. This is already the third mezzanine fund raised by Eqvitec, demonstrating that earlier funds have been great successes.
‘The mezzanine team has created a distinct and independent role and attracts investment opportunities outside the scope of Eqvitec’s equity funds, which have primarily venture focus.’
Eqvitec’s previous mezzanine fund, which was closed in 2005 at EUR53m, is fully invested in eight companies. The company, which was founded in 1997 and employs 15 investment professionals in Helsinki and Stockholm, currently advises six funds with a total capital base exceeding EUR500m. The funds have investments in 40 companies and have carried out 35 exits.
