CataCap closes first fund at DKK 1.1bn (ca. €145m)

12. September - 2014

For the first time in several years a Danish private equity fund has been established from scratch without backing from captive investors. A focus on SMEs with a significant development potential and CataCap’s clear business model for operational value creation has allowed CataCap to attract a number of professional investors, of which 40% are from outside Denmark. The final closing is now completed at DKK 1.1bn.

CataCap invests in SMEs characterized by a significant development potential and an innovative business model with long-term sustainability. The fund has completed three platform investments and two add-on acquisitions since its first closing in December 2012. The final closing exceeds CataCap’s target fund size of DKK 800m and the DKK 1bn hard-cap by 10%.

“Shortly after discussions with potential investors were initiated in 2012 we reached our first closing target by raising DKK 500m. This was an exciting, though demanding journey as 2012 was a historically tough year for fundraising in Europe. The fact that we have more than doubled the fund size in the final closing exceeds our expectations and it’s a clear recognition of our business model and accomplishments to date”, says Vilhelm Hahn-Petersen, Partner at CataCap.

The high pace and ability to deliver on the business model since the establishment of CataCap has boosted interest from additional investors. As an example CataCap’s first investment, Telecare, has more than tripled in size in less than one year by acquiring its two largest Nordic competitors in one go, creating a clear market leader. This was also the first time that a bond-issue was used to carry through an outright acquisition financing in the Danish small-cap market securing attractive terms compared to the usual funding sources.

Non-Danish investors make up 40% of the total commitment to CataCap and include the pan-European investor Access Capital Partners and the global investor Adveq, whose investment is also their first ever in Denmark. This is good news for the Danish SME’s as foreign investors have been less active in making commitments to Danish small-cap funds in the past, particularly first time funds:

“Foreign investors are increasingly looking at the small-cap segment because it holds a greater number of attractive targets compared with the mid- and large-cap segments. But to be successful as a private equity fund you need to produce results and prove your value proposition. There are no shortcuts, raising money is not a walk in the park. As a result we are very happy that our efforts have now paid off”, continues Vilhelm Hahn-Petersen.

CataCap expects to deploy its capital in a number of SMEs over the next couple of years, partly through platform investments and partly through add-on acquisitions to its existing portfolio companies.

For additional information, please contact:

Vilhelm Hahn-Petersen, Partner
+45 71 99 19 01