Final closing of the Industri Kapital 2004 Fund
Industri Kapital announces the final closing of its fifth fund with commitments of €825 million. The fund will be known as the Industri Kapital 2004 Fund.
The capital was contributed by well-known Nordic and International institutions, including pension funds, insurance companies, banks, government entities and funds-of-funds. Approximately 39% of the committed capital originates from the Nordic region, 36% from the rest of Europe and the remaining 25% from the United States.
The fund will pursue Industri Kapital’s investment strategy of acquiring and developing mid-sized companies with strong cash flow and profit improvement potential, operating in stable industries in the Nordic and Benelux countries, Germany and France. The Industri Kapital 2004 Fund announced its first investment before Christmas, the acquisition of Myresjöhus.
“We are delighted that that our fifth fund has closed. Since 1989 we have invested nearly €3.1 billion in 49 companies, generating over €5.4 billion of proceeds and value for our funds. We look forward to continuing to generate excellent returns as we focus on improving the underlying performance of those companies in which we invest. The fund closing comes after a successful 2004 in which we announced 4 investments and 7 realisations, returning a total of €814 million of cash proceeds to our funds in that year alone”, says Björn Savén, Chief Executive of Industri Kapital.
Industri Kapital invests capital, experience and commitment in its portfolio companies. Working in close partnership with portfolio company management, the firm has a strong, proven operating approach which improves performance in the acquired businesses. Industri Kapital focuses on the fundamentals of its portfolio companies and provides support to them in a variety of areas including realigning strategy, sharpening focus, enhancing margins, reducing costs, making add-on acquisitions and taking an active role in industry consolidation. This approach contributes to the creation of strong, focused companies with excellent long-term prospects. On average, the operating profit of Industri Kapital’s realised companies has more than doubled during the firm’s ownership and the substantial majority of the equity value increase in all realised investments to date is derived from growth in earnings.
For more information please contact:
Mads Ryum Larsen, Partner, Investor Relations, +44 20 7304 4306, +44 7785 392 553