The fund will be invested in mid-market Nordic companies, a segment where Altor has been a leading investor during the past three
Over 50 investors have committed to Altor’s second fund. The investor base includes Harvard Management Company, Princeton University, Goldman Sachs Private Equity Group, Pantheon, AlpInvest, Länsförsäkringar Liv, Skandia Liv, Allianz Private Equity Partners and Standard Life Investments (Private Equity). Nordic investors represent 25% of total commitments, other European investors 35% and US investors the remainder.
“We are very pleased with the quality of investors in our second fund”, commented Harald Mix,
partner at Altor Equity Partners. “The fact that practically all Fund I investors have chosen to invest with us again is proof that we have delivered on our original strategy. In addition, a selection of new reputable investors have committed to this second fund. It is also positive to note that because demand for the fund was so great, the fundraising process only lasted two months, a significantly shorter period of time than anticipated”.
The new fund is composed of € 900 million in base commitments and € 250 million in top-up commitments, which will serve primarily to develop portfolio companies. Altor will continue to
focus on making investments in medium-sized Nordic companies with a turnover in the region of € 50 – 500 million, a market segment where Altor has been a leading investor in the past three years.
Altor’s first fund closed in May 2003 with commitments of € 650 million. The fund has completed 12 platform investments and almost as many add-on acquisitions for the portfolio companies.
Since 2003 Altor has built a strong investment organisation consisting of 17 people, with broad international experience, a complementary mix of professional backgrounds and strong representation from all the Nordic countries. The organisation is led by Harald Mix and the other partners are Johan Cervin, Fredrik Strömholm, Denis Viet-Jacobsen, Hugo Maurstad and Stefan Linder.
“Our portfolio has developed very strongly, as a result of an intensive change programme and several add-on acquisitions. With our larger investment organisation in place, we feel well positioned to support additional Nordic companies with potential for growth and improved operating performance”, observed Fredrik Strömholm, partner at Altor Equity Partners.
Companies in which Altor has invested include the following:
Lindorff was acquired from Gjensidige in January 2004 and was combined with Contant (acquired from Sponsor in November 2003). During Altor’s ownership, the combined entity has markedly improved operating performance and grown organically and through a number of addon acquisitions to become the leading debt collection management company in the Nordic region.
Dynapac was acquired from Metso in June 2004. The company is a leading global manufacturer of compaction and paving equipment. Dynapac has developed very positively as an independent company with strong organic growth and a significant increase in operating margins.
Relacom originated from the combination of Telavie (acquired from Bravida in December 2004) and Flextronics Network Services (acquired from Flextronics in August 2005). Through this merger and large outsourcing contracts, e.g. in Brazil, Relacom has become the world’s leading independent supplier of network construction, maintenance and installation services to the telecommunications industry.
Ferrosan was acquired in February 2005 from Idosan and Novo Nordisk in a transaction where Idosan remained a minority shareholder. Ferrosan is an international consumer health (OTC) and medical device company. The focus during Altor’s ownership is on growth, organically and through acquisitions. This has been evidenced by a strong performance to date and the acquisition of NSG in Norway in September 2005, which strengthened Ferrosan’s position as one of the leading Nordic consumer health companies.
Other Altor portfolio companies include ACO Hud (exited August 2004), AGR, Meyn, Aalborg Industries, PaloDex, Simrad and ByggMax. In addition, Altor has recently signed an agreement to acquire Nimbus Boats. Altor’s portfolio companies have a total turnover of over € 2.3 billion and in aggregate employ more than 20,000 people. The fund was placed by Helix Associates Limited of London and Monument Group of Boston, which also advised Altor on the raising of the previous fund.
On behalf of Monument and Helix, John Barber of Helix commented: “This has been a highly successful fundraising exercise, notable for the quality and diversity of investors Altor has attracted, the scale of investor demand, the speed of the process, and the innovative structure of the base and top up commitments. Even allowing for healthy fundraising markets, Altor’s achievements on Fund II are notable.”
The fund’s legal adviser was Ashurst, London.