Nordic Capital’s €2.5 Billion Continuation Vehicle

Campbell Lutyens acted as financial advisor to Fund VII and Kirkland & Ellis and Carey Olsen served as legal counsel to Fund VII.

Nordic Capital’s 2008 vintage fund, Fund VII, today announced that it has successfully closed the transfer of its remaining nine unlisted portfolio companies, with a combined enterprise value of EUR 4.4 bn, to a continuation vehicle, Nordic Capital CV1 (“CV1”). Fund VII’s original term expired in December 2017 and by concluding this transaction, Nordic Capital will have the opportunity to maximise the value creation potential of these nine companies, providing them with active support and fresh capital over an additional five-year holding period under continued Nordic Capital management. This marks the conclusion of a highly-structured process with strong interest, which commenced during 2017.

This solution enjoyed strong support, with more than 80% of Fund VII investors by commitment supporting the transaction. The strong positive sentiment was based on attractive optionality and the robust commercial rationale underpinning the deal.

Coller Capital acted as lead investor in the transaction, which was fully underwritten by Coller Capital’s seventh fund and Goldman Sachs Asset Management’s Vintage Funds. Attractive pricing was established through a competitive auction process, which resulted in a EUR 2.5 bn (USD 3 bn) transaction and represented an 11% premium to the latest quarterly valuation (as at 30 September 2017). This reflected the high quality of the portfolio assets and confidence in Nordic Capital’s ability to drive ongoing value creation during CV1’s ownership period.

The Kirkland team was led by investment funds partners Ted Cardos (Picture) and Anand Damodaran and associate Andrea Renold, and included investment funds partners Michael Belsley, Richard Watkins and Christopher Braunack, investment funds associates Zoe Pople, Emma Whenham, Yushra Raheem and Tata Mbako, financial regulatory partners Lisa Cawley and Adam Skinner, corporate associates Jessica Liang and Nick Appleton, antitrust partners Ellen Jakovic, Mike Robert-Smith, and Michael Thorpe, employee benefits partner Elizabeth Dyer and associate Erica Rozow, and banking regulatory of counsel Julie Kunetka.

 

Involved fees earner: Theodore Cardos – Kirkland & Ellis; Anand Damodaran – Kirkland & Ellis; Andrea Renold – Kirkland & Ellis; Michael Belsley – Kirkland & Ellis; Richard Watkins – Kirkland & Ellis; Christopher Braunack – Kirkland & Ellis; Zoë Pople – Kirkland & Ellis; Emma Whenham – Kirkland & Ellis; Yushra Raheem – Kirkland & Ellis; Tata Mbako – Kirkland & Ellis; Lisa Cawley – Kirkland & Ellis; Adam Skinner – Kirkland & Ellis; Julie Kunetka – Kirkland & Ellis; Jessica Liang – Kirkland & Ellis; Nick Appleton – Kirkland & Ellis; Ellen Jakovic – Kirkland & Ellis; Mike Robert-Smith – Kirkland & Ellis; Michael Thorpe – Kirkland & Ellis; Elizabeth Dyer – Kirkland & Ellis; Erica Rozow – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Nordic Capital Limited;