IK Investment Nears First Close of Fund VII

Swedish private equity firm IK Investment Partners is more than half way to raising the full 1.7 billion euros ($2.3 billion) it is seeking for its seventh fund, Reuters reported Friday. Reuters wrote that the firm is near to announcing a first close for the fund. IK, which manages 5.7 billion euros in four active private equity funds, intends to invest the fund in manufacturing, healthcare and service industries. Its last fund launch, in 2007, also raised 1.7 billion euros.

(Reuters) – Swedish private equity firm IK Investment Partners is more than half way to raising the full 1.7 billion euros ($2.3 billion) it is seeking for its seventh fund, a source familiar with the matter said on Friday.

The source said IK was now near to announcing a first close for the fund, the point at which it can start investing.

IK, which manages 5.7 billion euros in four active private equity funds, intends to invest the fund in manufacturing, healthcare and service industries. Its last fund launch, in 2007, also raised 1.7 billion euros.

IK declined to comment.

Swedish private equity firms are moving into fundraising mode after investing the last of their money from existing funds.

There has also been a flurry of successful sales of private equity-owned companies in recent months, which have helped boost investor interest.

Sources said this week that IK has appointed JP Morgan and SEB Enskilda to advise it on a sale or listing of Attendo, one of the Nordic region’s largest healthcare providers, in a deal which could fetch up to 7 billion crowns ($1.1 billion).

Meanwhile Swedish private equity group EQT is looking to raise up to 1 billion euros for a new fund focused on distressed debt in Europe, sources said in January.

On Friday IK sold Europris, a Norwegian discount retailer focused on non-food, to Nordic Capital for an undisclosed amount – its fourth exit since last summer.

The Nordic region, bouyed by its well-capitalised banks and economic growth, has been a hot spot for private equity deals in recent months. ($1=0.7501 euros) ($1=6.6932 Swedish crowns) (By Mia Shanley; Editing by Greg Mahlich)