Litorina hits $378m hard cap in five months

Swedish mid-market private equity house Litorina, led by managing partner Harold Kaiser, has smashed its SEK2bn target for Fund IV.

Stockholm-based private equity firm Litorina has closed its fourth fund on a hard cap of SEK2.5 billion (€270 million; $378 million), bringing its capital under management to SEK4.8 billion. It was the fund’s first and final close.

The fund was “significantly over-subscribed” in the first five months of fundraising alone, the firm said in a statement. 

Harold Kaiser

The fund will look to take majority stakes in Swedish companies with an enterprise value of between SEK200 million to SEK750 million.

Fund IV is almost twice as large as the firm’s third fund, which closed on SEK1.4 billion in 2007, and is currently 75 percent deployed.

Commitments to Fund IV are evenly split between new and existing investors, including capital from asset managers, fund of funds and pension funds, said Harold Kaiser, managing partner of Litorina, in an interview with PEO.

Fund IV, which had a fund target of SEK2 billion, is expected to invest capital over a four year time line, added Kaiser. 

Probitas Partners acted as sole placement agent for the fund, with SJ Berwin working as legal advisors.

Founded in 1998, Litorina targets SMEs primarily located in Sweden. The firm was one of four candidates to be nominated by Private Equity International for the award “Private Equity Firm of the Year in the Nordic Region 2009”.