Fintech investor raises new €4.3bn private equity fund

By Daniel Lanyon on Monday 21 May 2018

Alternative LendingDigital BankingSavings and Investment

The new fund from Nordic Capital saw interest from investors around the world.

Fintech investor raises new €4.3bn private equity fund
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Nordic Capital has closed its latest private equity fund at €4.3bn following on from a string of fintech-focused deals, according to Ropes & Gray who advised the fund raise. 

The new portfolio, named Fund IX, saw a re-up rate of over 70 per cent from investors in predecessor funds and also saw new investor commitments as well.

This included LP commitments from a diversified mix of institutional investors including public and private pension funds which made up c. 35 per cent and sovereign wealth funds - c. 20 per cent - as well as  fund of funds and family offices  which made up c.15 per cent in each instance. Other financial institutions and endowments made up the remaining c.15 per cent.

The new fund also saw broad geographic investment with an investor base across North America (c. 40 per cent), Europe (c. 35 per cent) and Asia (c. 15 per cent), and also attracted new investors in the Middle East and South America (c. 10 per cent).

Nordic Capital has been making investments into fintech firms for more than thee years, particularly in the banking and payments area.  It acquired card transactions specialist Euroline payments firms Keycorp, Samport, Bambora -  now sold - and MPS.

In March 2018 Nordic Capital also bought up a sizeable stake in cross-border payments fintech platform Trustly.

Matthew Judd, global co-head of the Private Investment Funds Group at Ropes & Gray, who advised Nordic Capital on the fundraise said:

 “The success of this fundraising demonstrates both Nordic Capital’s long-standing quality reputation and the continuing attraction of European private equity for investors.”

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