Danske PE eyes quick deployment of fund-of-funds in crowded market

  • Firm raises 700 mln Euros for Danske PEP VI
  • Fund VI gets first North American LPs
  • Exec sees two-year deployment instead of three


Danske Private Equity expects to deploy its recently closed PEP VI fund-of-funds in two years instead of three in the face of ample investment opportunities, an executive at the firm said.

With its first North American limited partners taking part in a fund, Copenhagen-based Danske Private Equity recently hit the hard cap of 700 million euros, or about $800 million, for Fund VI, surpassing the 650 million euros it raised for Fund V.

Jesper Knutsson, principal, said the firm has been investing from Fund VI for about a year, and it’s on track to launch Fund VII about a year ahead of schedule.

“It’ll be a shorter investment span than we normally do,” he said in a phone interview. “There are a lot of very good funds, a lot of interesting funds. It’s a very active market. We’re participating without losing sight of our discipline, which is very important.”

Among its earlier investments, Danske PEP VI moved into a Waterland Private Equity fund; also BelHealth Investment Partners, a U.S. GP focused on healthcare management deals that raised $350 million for its second fund last year.

Like past funds, Danske PEP VI will invest in as many as 15 lower-middle-market funds, half in North America and half in Europe, with an average investment of about 45 million to 50 million euros ($51 million to $57 million) each. The firm also buys secondary positions in funds in which it’s already invested.

Danske Private Equity sifts through first-time funds, spinouts, smaller established funds, sector specialists, buy-and-build firms and turnarounds.

Founded in 1999, Danske Private Equity manages about 3.7 billion euros.

Action Item: Danske Private Equity, http://bit.ly/1qg0X86

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