On Friday, Nordic Capital announced the close of its second mid-market fund, Evolution II, at €2 billion, hitting its hard cap after a rapid four-month fundraising campaign.
Nordic Capital Closes Evolution II Fund at €2bn Hard Cap After Rapid Fundraising
The fund significantly surpassed its €1.4 billion target and is 65% larger than its predecessor, Evolution I, which closed at €1.2 billion in 2021.
The firm noted “excess demand” from a diverse investor base, including notable increases in commitments from the Americas, contributed to Evolution II’s success.
Approximately 41% of investors hailed from Europe, with the Americas accounting for 35%, Asia 21%, and the Middle East 3%.
The diversified investor base comprises pension funds, asset managers, sovereign wealth funds, and family offices.
The fund will target Northern European mid-market companies with enterprise values of €100 million to €400–500 million, focusing on non-cyclical growth sectors such as healthcare, technology, and industrial tech.
Furthermore, Nordic Capital said Evolution II will prioritise partnerships with founders to scale businesses and expand internationally.
Joakim Lundvall, Co-Head of the Evolution advisory team, said: “Our strong Evolution team, with its clear focus on business growth driven by local market expertise and deep sector knowledge, has cultivated a robust pipeline and secured partnership investments with growth companies within attractive niches.
“Over the last three years, a number of founders of companies have formed partnerships with Nordic Capital because they have experienced first-hand how we can help make great companies even better and support their expansion into new markets.”
