Nordic Capital Closes Evolution II at €2 Billion Hard Cap

Nordic Capital Closes Evolution II at €2 Billion Hard Cap

– Nordic Capital Evolution II closed at the hard cap of €2 billion, exceeding its target of €1.4 billion, with fundraising completed in just four months and strong excess demand.

– The fund achieved a high re-up rate of over 100% by capital from existing investors and significant new commitments from geographies like the Americas.

– Evolution II is 65% larger than its predecessor, Evolution I, which raised €1.2 billion in 2021, and is the fourth Nordic Capital fund since 2020 to achieve rapid fundraising.

– Evolution II targets Northern European companies with an enterprise value (EV) of €100–400/500 million, focusing on control buyouts and non-cyclical growth opportunities in Healthcare, Technology & Payments, Financial Services, and Services & Industrial Tech.

– Evolution II complements Nordic Capital’s flagship funds, which focus on upper mid-market companies, while maintaining a strong focus on partnerships with founders and management to drive market leadership.

– As an Article 8 fund, Evolution II prioritizes long-term sustainability through environmental, social, and governance (ESG) practices, solving global challenges, and supporting sustainable businesses.

– Nordic Capital has a 35-year history of growing mid-market companies, with Evolution I completing 10 investments, 70% in partnership with founders and 80% outside auctions, demonstrating its strong focus on collaboration.

– Investors in Evolution II span globally: 41% from Europe, 35% from the Americas, 21% from Asia, and 3% from the Middle East, with a mix of public and private pension funds (41%), asset managers and advisers (26%), sovereign wealth funds (14%), family offices and foundations (13%), and financial institutions (6%).

– Nordic Capital received a top ESG rating from the UNPRI for the second consecutive year and approved greenhouse gas emissions reduction targets under the Science-Based Targets initiative.

Joakim Lundvall, Partner and Co-Head of the Evolution advisory team, highlighted investor confidence in the mid-market strategy and the Evolution team’s focus on growth and local expertise.

Jonas Agnblad, Partner and Co-Head of the Evolution advisory team, emphasized the partnership model’s role in scaling companies and creating sustainable value.

Pär Norberg, Partner and Head of Investor Relations, expressed gratitude for investor support and confidence in Nordic Capital.

– The Evolution Funds are supported by a dedicated team of 20+ professionals, with expertise in operational and sector-focused strategies, drawing on Nordic Capital Advisor’s regional network.

Rede Partners LLP acted as placement agent for the fundraising, with Kirkland & Ellis serving as lead legal counsel.