Pan European private equity firm IK Investment Partners has held the final close of its IK Small Cap III Fund on its €1.2bn hard cap.
The new vehicle was “significantly” oversubscribed and was exclusively allocated to existing IL platform investors.
IK Investment Partners managed to raise the fund within just three months.
IK Small Cap III Fund is more than double the size of its predecessor, which closed on €550m in 2018.
Continuing the strategy of its precursors, the Fund III will invest into businesses across the business services, healthcare, consumer and industrials sectors, that have enterprise values between €50m and €150m.
This new vehicle also includes a dedicated “Development Capital pool”, which will target smaller companies that are valued up to €50m.
IK managing partner Pierre Gallix said, “There continue to be a large number of opportunities at the lower end of the small cap market where we see significant potential for IK to support management teams in unlocking potential and realising growth. We have already identified a pipeline of future market leaders who we can support with our capital and expertise as they look to scale up and expand.”
IK launched its small cap strategy in 2015 and has made 27 investments across its two funds.
Its debut vehicle closed on €277m and has realised €425m of processes, including seven full exits at a gross average of 3.2MM and 56% IRR.
Kirkland & Ellis International served as the legal counsel to the Fund.
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