Ashurst advised Altor on the formation of Altor Fund V. Altor held a single close on 6 February 2019, after a swift fund-raising, at its target size and hard cap of €2.5 billion.
The new fund reflects Altor’s wider investment focus, by allowing investment in Germany, Austria and Switzerland as well as the Nordic countries.
The vast majority of the capital has been committed by existing investors, with only a select group of new investors being invited. The investor base consists mainly of US university endowments, charitable foundations, insurance companies and pension funds. Nordic and DACH investors (Austria, Germany and Switzerland) represent 32% of total commitments, with the remaining capital being committed by investors mainly from the US, elsewhere in Europe and the Middle East.
The new fund will, like the previous Altor Fund IV, have a 15 year term, allowing Altor to create value for its investors over a longer term than many of its competitors. The new fund allows for both debt and public minority investments, but also has a wider geographical investment mandate, allowing for investments to be made in companies in the DACH region in addition to the Nordic region. Altor remains committed to its long term strategy of creating value and generating superior returns by building world-class companies.
As for the previous fund, Altor Fund V uses a Swedish corporate structure and the Altor fund manager is regulated as an Alternative Investment Fund Manager by the Swedish Financial Supervisory Authority.
The Ashurst team was led by global funds head Piers Warburton (picture) and included partner Alexander Cox (tax), senior associates Nicole Williams (funds) and Andreas Elofs (funds), and solicitor Oliver Cary (funds).
Ashurst acted as lead counsel on the fund raising, and has acted for Altor on the establishment of each of their previous fund-raisings.
Monument Group acted as placement agent, Mannheimer Swartling Advokatbyrå AB advised on Swedish legal matters, Gernandt & Danielsson Advokatbyrå AB on Swedish regulatory matters, Ropes & Gray on US legal matters and PricewaterhouseCoopers AB on tax and audit matters.
Aztec Group will provide administration and depositary services.
Law Firms: Ashurst;
Clients: Altor Equity Partners;