Nordic Capital has closed Europe's largest PE fund of the year on €9 billion, beating its initial €8 billion target after just nine months on the road. The vehicle is one of only two European mega-funds—funds with over €5 billion in commitments—to close this year.
According to PitchBook's Q3 2022 European PE Breakdown, 2022 is on track to be the worst year for PE fundraising in Europe since 2012. The tightening of monetary policy among many central banks, including interest rate hikes to combat inflation, has meant the cost of capital has risen significantly.
The new fund will target companies within the healthcare, technology and payments, and financial services sectors. It will also invest more selectively in industrial and business services. These sectors, to varying degrees, are inflation-resistant, as they have the ability to pass on increased costs to their customers.
The region's only other mega-fund this year, BC Partners' European Capital XI, closed in February on €6.9 billion, two years after its launch.
The European PE Breakdown shows that 92% of PE funds closed this year hit their target despite the difficult environment, suggesting that, while the public markets are faltering, private markets have staying power and the trust of their investors.
Featured image of Stockholm, Sweden by f11photo/Shutterstock
According to PitchBook's Q3 2022 European PE Breakdown, 2022 is on track to be the worst year for PE fundraising in Europe since 2012. The tightening of monetary policy among many central banks, including interest rate hikes to combat inflation, has meant the cost of capital has risen significantly.
The new fund will target companies within the healthcare, technology and payments, and financial services sectors. It will also invest more selectively in industrial and business services. These sectors, to varying degrees, are inflation-resistant, as they have the ability to pass on increased costs to their customers.
The region's only other mega-fund this year, BC Partners' European Capital XI, closed in February on €6.9 billion, two years after its launch.
The European PE Breakdown shows that 92% of PE funds closed this year hit their target despite the difficult environment, suggesting that, while the public markets are faltering, private markets have staying power and the trust of their investors.
Read more: Q3 2022 European PE Breakdown
Featured image of Stockholm, Sweden by f11photo/Shutterstock
