Regardless of the adverse economic environment, private equity continues to collect billions for individual funds: According to information from the FAZ, the Scandinavian investment company Nordic Capital has filled its largest fund to date and received commitments of over 9 billion euros from investors.

This eleventh fund is thus half the size of its predecessor, Fund X, which was launched in 2020 with commitments of over 6.1 billion euros.

It was the largest since Nordic Capital was founded in 1989.

Klaus Max Smolka

Editor in Business.

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According to data from the financial information service provider Bloomberg, this is one of the largest funds with a focus on Western Europe that Private Equity is closing this year.

Five Anglo-American investment houses and the Scandinavian EQT have raised even higher volumes in 2022.

Advent leads the way with $25 billion, followed by Blackstone, Permira, EQT, Francisco Partners and Clayton Dubilier & Rice.

At USD 10 billion, the latter are roughly at the level of the new Nordic fund.

Nordic Capital is best known in Germany for the nursing home operator Alloheim.

The new fund is also intended to finance further takeovers in German-speaking countries.

The region "plays a central role for Fund XI", Nordic Capital partner Rainer Lenhard promises to the FAZ.

Raise funds and acquire businesses

Many private equity companies obtain financial commitments from institutional investors for individual funds on special promotional tours.

They call off the promised funds in portions later when they make a takeover.

Overall, private equity has had a harder time catching up on commitments this year.

According to calculations by large data service providers, the sums are declining significantly globally - albeit at a still high level because the global flood of money is putting pressure on investments.

According to Bain & Company, volume in the first half of 2022 halved to $138 billion compared to $284 billion in the same period last year.

Pitchbook calculates that in the US alone, volume fell to $119 billion in the first nine months of the year, compared to $197 billion in the same period last year.

Statistics provider Preqin forecasts that the added volume will fall by a good fifth from 2021's $561 billion.

Nordic Capital raised capital for its latest fund in nine months, beating the original target of EUR 8 billion.

The donors are divided equally between the USA, Europe and the rest of the world.

Almost half comes from public and private pension funds, a quarter from sovereign wealth funds, and the rest from funds of funds, financial institutions, foundations and family wealth managers.