Danske PE closes sixth FOF on €700m, may return to market in 2017
May 12, 2016
12 May 2016
Denmark’s buyout firm Danske Private Equity has closed its PEP VI fund of funds on its €700m hard cap and expects to be in the market again next year, AltAssets has learned. Fundraising went very well and Danske was “basically forced” to close it down after a pretty short period, principal Jesper Knutsson told AltAssets. The firm received its first ever LP commitment from North America. The majority of investors in the fund are from Europe, primarily from the North. PEP VI has been investing since its first close a year ago and is well on track with its goal to make up to 15 investments in underlying funds. To date the fund has committed around 40 per cent of the raised capital to six underlying funds as well as two co-investments, according to Knutsson. Danske intends to continue investing PEP VI very actively this year and is currently running “quite a few” due diligence processes, he said. At this stage it is too early to say how far along the fund would have advanced by year-end the fund but it is expected to have done enough progress to allow a new fundraise in 2017, he added. PEP VI had its first close on €603m in May 2015 and the initial target for the vehicle was €650m . Danske’s fifth fund of funds was closed on €650m in August 2012, exceeding its €600m target . It has been fully committed with 14 fund investments, 3 secondary deals and one co-investments in an even split between Europe and North America. PEP VI continues the strategy from the predecessor vehicle, targeting funds of less than €1bn in size and a 50-50 regional split between Western Europe and North America. Copyright © 2016 AltAssets
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