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FSN Capital raises EUR1.8bn for sixth mid-market fund

FSN Capital Partners (FSN) has held the final closing of FSN Capital VI (Fund VI) at EUR1.8 billion. The fund was oversubscribed and closed above its original hard cap.

With the new fund, FSN has grown significantly since FSN Capital V closed in 2016 at SEK9.62 billion (EUR985 million). Fund VI will continue FSN’s proven investment strategy of targeting control buyout investments of mid-sized companies operating in Northern Europe. 

Fund VI builds upon FSN’s strong and supportive existing investor base whilst also attracting a substantial number of new investors from around the globe. Despite the challenging backdrop of an unprecedented global pandemic, FSN quickly adapted to the virtual fundraising environment, and a considerable proportion of investors completed a fully virtual diligence process. Significant local endorsement by leading Nordic and DACH investors was matched with 61 per cent of commitments from investors outside these home markets.

Stemming from FSN’s ethos of being “decent people, delivering decent returns in a decent way”, FSN seeks to partner with entrepreneurs and management teams based on a shared vision and foundation of trust built through transparency and humility. 

FSN has maintained a strong focus on ESG since inception. It has reported publicly on the ESG performance of its portfolio companies since 2013 and is committed to being a leader in transforming businesses into more robust and sustainable companies. FSN is continuously building on and improving its industry-leading ESG framework and its integration of ESG considerations in the strategy, operations and culture of each portfolio company. 

Fund VI is classified as an Article 8 or “light green” fund under the EU’s new Sustainable Finance Disclosure Regulation. In addition, further supporting FSN’s core belief that responsible business practices drive long-term performance and value creation, the fund has an ESG-linked subscription facility, which links the margin to improvements in ESG strategy and governance, carbon footprint and diversity. 

UBS Private Funds Group acted as sole global placement agent, and Kirkland & Ellis International LLP acted as legal counsel, to Fund VI. 

“We are delighted with the strong support we have received from existing LPs and are privileged to welcome a number of leading, blue-chip investors from around the globe as new limited partners,” says Morten Welo, Partner and Head of Investor Relations at FSN Capital. 

“ESG is a core part of FSN Capital’s value creation approach. Fund VI’s ESG commitments demonstrate our passion for building resilient businesses of strong integrity that will stand the test of time,” says Frode Strand Nielsen, Managing Partner and Founder of FSN Capital.

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