Niam raises €125m for latest opportunity fund

The Stockholm-based private equity real estate firm holds a first closing for its Niam Nordic V fund. The vehicle will be used to invest in a range of real estate sectors and will include some development acquisitions.

Stockholm-based private equity firm Niam has held an initial closing of its Niam Nordic V fund, a Nordic and Baltic-focused opportunity fund.

The firm said in an announcement today it had raised €125 million from North American and European institutional investors for the vehicle.

Niam is aiming to raise €600 million of equity for the fund but with leverage it is expected to have a spending power of closer to €2.2 billion.

Johan Bergman, chief executive officer of Niam, said investments would be made via its satellite offices in Sweden, Finland and Norway and would include development as well as existing properties and portfolios. He added that the firm would seek investments with “value-add opportunities”.

Niam started in 1998. According to its website, the firm has since realised gross leveraged IRRs of 30 percent and an equity multiple of 1.9x on approximately €2.5 billion of invested capital from its Niam Fund I, II IIb, III and IV and various partnerships. It has realised a gross leveraged IRR of 53 percent and an equity multiple of 2.3x on €908 million of invested capital from its own allocated capital.

Its last large final closing came in 2008 when it raised €700 million for its Niam Fund IV.