European private equity firm IK Partners has closed its fourth Small Cap fund, the IK Small Cap IV Fund, at its hard cap with commitments of €2bn, with the majority (80%) of the capital raised from existing investors.
IK SC IV was oversubscribed at its hard cap in less than six months after its launch, having attracted significant interest from a high-quality institutional investor base across EMEA (71%), North America (18%) and Asia (11%).
The fund’s predecessor, IK Small Cap III, raised €1.2bn in 2021.
The fund has already made one investment and will continue to employ the same investment strategy focused on growing business across IK’s core sectors of Business Services, Healthcare, Consumer and Industrials, supporting companies with enterprise values between €80m and €20m.
Like its predecessor, IK SC IV also includes a dedicated pool of Development Capital (€600m) which will focus on investing in smaller companies valued between €20m and €80m.
IK launched its Small Cap strategy in 2015 and has since invested in 56 transactions across four funds. Collectively, the funds have thus far realised a total of over €2.1bn in proceeds, representing 128% of invested capital. This translates into a money multiple of 3.1x on the 25 investments exited.
The closing of the IK Small Cap IV Fund follows a period of record deal activity for IK, which saw it invest in 21 new companies and exit 11 since the start of 2024.
During this period, the Firm also held closes on funds totalling in excess of €6bn in commitments, including €505m raised for the IK Strategic Opportunities I Fund – its first continuation fund – in April 2024 and more recently, the €3.3bn close of the IK X Fund, IK’s 10th Mid Cap fund, in April 2025.
