Nordic Private Equity - Buyout H1 2024Analysis of the Nordic PE Buyout market in the first half of the year

The fundraising activity in the first half of 2024 have been strong, with 11 fund managers successfully closing funds and raising a total of €14.1 billion. This amount marks a notable increase compared to the first halves of recent years. However, the projected total fundraising for 2024 is somewhat lower than historical trends might indicate. Despite this projection, fundraising has remained strong over the past few years, while the level of invested amount has not kept pace. This suggests that there is still a significant amount of dry powder—capital ready for investment— available in Nordic buyout funds.

Nordic buyout funds successfully raised EUR 14.1 billion in the first half of 2024 across more than 11 different funds, marking the highest capital raised in H1 since 2018. In fact, only three of the past eight years have seen greater total annual fundraising. This substantial influx of capital can largely be attributed to the successful closures of three major funds during the period: EQT X, Altor VI, and EQT Future.

The sharp increase in fundraising in the first half of 2024 continues the cyclical pattern observed in the buyout market over recent years, characterized by alternating periods of high and low fundraising activity. This cycle is primarily driven by a few fund managers closing large funds every other year.

However, projections indicate that the latter half of 2024 will see a significantly lower level of fundraising. Argentum estimates that the total fundraising in the buyout segment for 2024 will reach approximately EUR 16.4 billion. While this figure is modest compared to the previously mentioned trend, it is important to note that fundraising in 2022 reached an all-time high, whilst the amount invested in 2023 was significantly lower than the capital raised. This indicates that a substantial amount of dry powder—capital available for investment— remains, despite the moderate fundraising expectations for 2024.

There have been notable differences in fundraising activities among the Nordic countries within the buyout segment. Sweden stands out with a total fundraising amount of EUR 11 billion, accounting for 78 percent of the total raised in the Nordic buyout segment. Of this EUR 11 billion, approximately 65 percent is attributed to EQT's closing of EQT X and EQT Future. In contrast, both Denmark and Norway raised EUR 1.5 billion each in the buyout segment, while Finland recorded a modest fundraising amount.

See an overview of Nordic buyout funds that closed in 2024 below.