Kirkland & Ellis LLP has advised Nordic Capital in successfully closing its second Evolution Fund, Nordic Capital Evolution II, after raising €2 billion ($2.1 billion) from investors in a mere four months, the firm announced Friday.

Overshooting the Target with Strong Investor Demand

The Nordic Capital Evolution II Fund marked its first and final close simultaneously, surpassing its initial €1.4 billion target due to "excess demand," according to the announcement. The fund will focus on control buyouts and growth opportunities across Nordic Capital's key sectors: healthcare, technology and payments, financial services, and services and industrial technology.

The fund primarily targets companies in Northern Europe with enterprise values between €400 million and €500 million. While Evolution II homes in on lower mid-market investments, Nordic Capital's flagship funds will continue concentrating on upper mid-market opportunities.

Driving Sustainability in Investments

Evolution II reinforces Nordic Capital’s commitment to sustainability, with the fund seeking to promote long-term environmental, social, and governance (ESG) goals. The firm plans to embed sustainability practices within its portfolio companies to foster growth and responsible governance.

Strong Investor Support Across Geographies

The fund attracted significant backing from Nordic Capital's existing investors, achieving a re-up rate exceeding 100% by capital. New investors also showed robust interest, with notable commitments from regions including the Americas, Europe, Asia, and the Middle East.

Investor composition included:

• 41% from Europe
• 35% from the Americas
• 21% from Asia
• 3% from the Middle East

Public and private pension funds, asset managers, sovereign wealth funds, family offices, and financial institutions were among the fund’s supporters.

Leadership Commentary

“We are delighted to witness such strong demand for Evolution II from both existing and new investors. Their unwavering support is a testament to their confidence in Nordic Capital's mid-market strategy,” said Joakim Lundvall, partner and co-head of the Evolution advisory team.

Lundvall emphasized the team's expertise in business growth, underpinned by local market knowledge and sector-specific insights. He noted that the fund has already established a strong pipeline, securing investments with high-growth companies in niche markets.

Evolution II’s Record-Breaking Growth

Evolution II is 65% larger than its predecessor, Evolution I, which closed at €1.2 billion in 2021 after only three months of fundraising.

Kirkland & Ellis: A Key Advisor

Kirkland & Ellis LLP provided legal guidance on the fund. The team included:

• Investment Funds Partners: Amy Fox, Anand Damodaran, Andrea Renold, Agne Eriksson, and Alex Clarke
• Tax Partners: David Grenker, Alex Cox, Ian Ferreira, and Justin Barbosa
• Financial Services Regulatory Partners: Thomas Woodhead, Joshua Westerholm, Reed T. Schuster, and Deirdre Haugh
• ERISA Partner: Sabrina C. Glaser