Number Crunch H1 2023Analysis of the Nordic PE market in the first half of the year

In the first half of 2023, Nordic venture funds secured EUR 483 million in fresh capital. This figure is far off the level we witnessed last year, when several large players raised funds, but in line with the first half of 2021. The fundraising market is tight, with a lot of competition in the market. Argentum expects that total fundraising in 2023 in the venture segment will be in line with the EUR 2 billion raised in 2021. Far from last year’s record numbers, the amount raised in 2023 will still be comparable with some of the strongest fundraising years we have seen in the past.

Fundraising activities vary notably among the Nordic countries. Denmark saw no capital raised in the venture segment during the first half of 2023, while Norway reported a modest EUR 5 million raised. In contrast, Finland and Sweden experienced more substantial fundraising, with EUR 180 million and EUR 298 million, respectively.

See an overview below of Nordic venture funds that have closed so far this year.⁹

Nordic buyout funds successfully raised EUR 4.8 billion in the first half of 2023, distributed across 7 funds. In general, the fundraising market is slower than it has been in recent years, and fundraising takes more time.

Since 2017, Nordic buyout fundraising has followed a cyclical pattern, with alternating years of relatively high and low fundraising levels. This pattern emerges from a few fund managers closing large funds every other year. Following this trend, 2023 is anticipated to be a year of modest fundraising. Argentum expects that total fundraising in the buyout segment will be approximately EUR 15 billion in 2023. This will be a strong figure, considering the impact of large cap players on fundraising is limited in 2023.

There have been significant differences in fundraising activities between the Nordic countries, also within the buyout segment. Sweden stands out with a total fundraising amount of EUR 4.2 billion, which accounts for 86 percent of the total raised in the Nordic buyout segment. Out of the EUR 4.2 billion, more than 50 percent is attributed to EQT's partial close of the EQT X fund. In Norway, the total amount raised within the buyout segment was EUR 455 million, while Denmark recorded total fundraising amounts of EUR 168 million. In Finland there was no fundraising in the buyout segment on record in the first half of 2023.

See an overview of Nordic buyout funds that closed in 2023 further down.¹⁰