Pan-European private equity firm IK Investment Partners has raised aggregate commitments totalling EUR1.85 billion for its eighth mid cap fund, the IK VIII Fund.
Fundraising commenced in March 2016, and has seen strong demand from both existing and new investors.
The fund exceeded its EUR1.6 billion target and secured commitments of EUR1.85 billion from an institutional investor base with a geographical spread across North America (37 per cent), Europe (52 per cent), Middle East (5 per cent) and Asia (2 per cent).
The fund will continue to execute the same strategy applied to previous IK funds, making majority investments in companies with enterprise values up to approximately EUR500 million in IK’s core markets: Benelux, DACH, France and the Nordics.
By targeting companies where, in partnership with management, distinct growth opportunities have been identified, the firm will use its industrial knowledge, experience and network to continue building IK’s investment track record.
The fund has to date announced three investments, all leveraging IK’s previous experience: Ellab, a manufacturer of thermal validation solutions; ZytoService, a compounder of pharmaceuticals for patient-individualised infusions; and SCHOCK, a granite kitchen sink manufacturer.
“We are delighted by the response we have seen from the investor community during our fundraising. The fund closing at its hard cap is a great indication of investors’ confidence in our investment approach and our ability to execute buy-and-build strategies within our portfolio,” says Mads Ryum Larsen, head of IR and partner at IK Investment Partners.
Christopher Masek, CEO, says: “Combining IK’s strong operational focus and active management philosophy with quality mid cap assets, seeking international development, provides a competitive edge in delivering transformational agendas and generating consistent returns for our investors. This fundraise builds on the successful momentum of over EUR2 billion in realised equity value since December 2014.”
IK also closed its first fund focused on the small cap market, the IK Small Cap I Fund, at its hard cap earlier this year, bringing the total amount raised over the past nine months to more than EUR2.1 billion.
Kirkland & Ellis acted as the legal counsel to the fund.