Polaris Private Equity (“Polaris”), a leading Nordic buyout investor, is pleased to announce the first close of Polaris Flexible Capital (“PFC” or the “Fund”). The Fund has raised 500 million DKK, with a total target of 1 billion DKK.
PFC is a new fund launched by Polaris in 2021 to make investments in subordinated loan capital (junior capital etc.) and minority shareholdings. The Fund will make capital available to companies which need financial backing while maintaining control of their business, and is expected to begin to deploy capital this quarter. The closing follows Polaris’ successful completion of fundraising for its latest flagship vehicle, Polaris Private Equity V K/S, which was oversubscribed and closed at its hard cap of €650 million on 31 January.
PFC is led by Polaris Partner Jesper Langmack, who joined the firm in 2021 from Danica Pension, where he was Chief Investment Officer. Prior to this he was responsible for alternative investments as CIO at PFA Asset Management. Peter Høltermand has been appointed as chairman of PFC’s advisory board. Mr. Høltermand was Chief Executive of SEB’s activities in Denmark for a number of years.
Jan Johan Kühl, Managing Partner at Polaris, states: “We are delighted to have seen strong investor interest for PFC, primarily from family offices and institutional investors. We are incredibly pleased that strong profiles such as Jesper Langmack and Peter Høltermand are now making their skills, knowledge and track record available to Polaris’ investor base. It is crucial that we have a team that has already proven that they can deliver excellent results.”
PFC’s lending is targeted at companies that need capital for succession, investments, geographical expansion or acquisitions. The Fund’s geographic focus will be Nordic, with a special focus on Denmark and Sweden. The Fund will operate side by side with Polaris’ Private Equity funds, with which the new fund will work closely. This will give Polaris strengthened opportunities to support successful companies through partnerships tailored to the individual company and its owners.
“Polaris Private Equity has traditionally held majority ownership in the companies in which we invest, but if this is not possible, then we can now create solutions that involve capital and partnerships in another form. This gives Polaris a wider range of opportunities,” states Mr. Langmack. “We have already received inquiries from many companies that are interested in capital and partnership with the fund.”
The new fund will have access to Polaris’ full toolbox of expertise and networks, covering areas including operational optimization, internationalization, business acquisitions, digitization and sustainability. This means that the fund offers companies more than just capital, and can contribute to strategic development and value creation together with the owners.