Niam plots €700m Fund VI

The Nordics’ biggest private equity real estate firm is close to the 75 percent invested mark for its Niam Nordic Fund V opportunity fund and is already planning the next vehicle in the series.

Niam, the Stockholm-based private equity real estate firm that has become the largest in the sector in the Nordic region, is soon to start fundraising for the sixth vehicle in its opportunistic fund series, PERE can reveal.

The firm, which started life in the late 1990s as an operating partner to the sector’s largest global platforms like Goldman Sachs, GE Capital and Morgan Stanley, is understood to be close to the prerequisite 75 percent hurdle mark on its current fund before it can begin to market another vehicle, according to sources familiar with the firm. Niam declined to comment on its capital raising plans.

Niam will seek to raise a similar amount to the capital raisings of its current and previous funds, Niam Nordic Fund V and Niam Nordic Fund IV, which collected €719 million and €670 million respectively. The firm is expected to hit the fundraising road again sometime in the first half of 2015.

Another fundraising effort that results in an approximately €700 million haul would serve to further consolidate Niam’s status as the largest opportunistic real estate investment platform in the Nordics region and among the most active in Europe currently.

Investors that have backed the firm have benefited from performances that have met or exceeded their targets. Niam Nordic Fund IV, for example, which is a 2007 vintage fund, currently is 75 percent divested and is generating net IRRs of 17 percent and an equity multiple of 1.7x. Niam Nordic Fund III, which PERE revealed last week had divested its remaining assets to Zug-based private markets investment firm Partners Group, has produced 18 percent IRR and an equity multiple of 1.6x.

The firm has remained faithful to a strategy that involves opportunistic investing across sectors in Sweden, Norway, Finland and Denmark and is expected to continue this for the forthcoming Fund VI.

Niam, like other opportunistic fund managers, has also ventured into lower risk, lower return strategies of late. In 2012, it launched its first core product, Niam Nordic Core Plus, for which it raised €300 million. But it is the opportunistic strategies for which it is best known.