Nordic Capital announces First and Final close of Evolution II at EUR 2 billion hard cap after rapid four month fundraise
Nordic Capital has announced the successful First and Final close of Nordic Capital Evolution II, at its hard cap of EUR 2 billion. Closed just four months from launch with excess demand, the fund significantly exceeded its target of EUR 1.4 billion.
We are pleased to have supported Nordic Capital with this highly successful fundraise. Evolution II benefitted from strong support from its existing investor base, with a high re-up rate of over 100% by capital, as well as significant new LP commitments across geographies. Overall, 43% of total capital closed was from investors headquartered in Europe, 37% from the Americas and 20% from Asia-Pacific and the Middle East. The investor base was also well-diversified by type including public and private pension funds (c.43%), asset managers and advisers (c.28%), family offices and foundations (c.14%), sovereign wealth funds (c.9%) and financial institutions (c.7%).
Evolution II is 65% larger than its predecessor fund, Evolution I, which closed on EUR 1.2 billion in 2021. The demand for the fund and the pace of its raise underlines investors’ confidence in Nordic Capital’s sub-sector specialised investment model, powerful platform and portfolio performance.
Leveraging the full capabilities of the Nordic Capital organisation, Evolution II will target investments in rapidly growing Northern European companies with enterprise values between EUR 100 million and EUR 500 million. The Fund will focus on control buyouts and non-cyclical opportunities in Nordic Capital’s focus sectors which each benefit from strong secular tailwinds: Healthcare, Technology & Payments, Financial Services and Services & Industrial Tech.
As an SFDR Article 8 fund, Evolution II will continue Nordic Capital’s strong commitment to sustainability. Nordic Capital received a top ESG rating of 99/100 from the UNPRI and further advanced its climate agenda with the announcement that its greenhouse gas emissions reduction targets have been approved by the Science Based Target initiative.
Rede is delighted to have partnered once again with Nordic Capital on this successful fundraise, continuing a strong relationship between the two firms that began in 2018. To date, Rede has worked together with Nordic Capital to raise four funds: as well as Evolution II, Rede has advised on Fund X (EUR 6.1 billion, 2019), Evolution I (EUR 1.2 billion, 2021) and Fund XI (EUR 9.0 billion, 2022). Rede’s association with Nordic Capital is a source of immense pride and we are grateful for the trust placed in us by the Nordic Capital team.