Successful First Close of NORD Holding’s Second Dedicated Co-Investment Fund "NKB Co-Invest IX"
September 2023 - NORD Holding ("NORD"), the leading private equity investor in the micro and small cap sector, is delighted to announce the successful first closing of its second dedicated co-investment fund in a challenging market environment. The commitments amount to c. EUR 125 million, almost reaching the fund volume of the predecessor fund and c. 50% of the targeted fund volume of EUR 250 million.
"We are grateful for the strong support of our existing and new investors, which underlines the attractiveness of our investment strategy," says Rainer Effinger, Managing Partner at NORD Holding. "Despite changing market conditions, our focus on the lower end of the market continues to enable us to execute attractive transactions with limited leverage at very favourable valuations. With the first closing date, we have already built a portfolio of 6 companies that have been acquired at an average entry multiple of less than 6x EV/EBITDA."
We offer our investors a unique opportunity to invest in a broadly diversified portfolio of European micro and small cap companies
NKB Co-Invest IX will invest equity amounts of EUR 3 to 20 million directly in micro and small-cap companies. Our unique fund investment strategy and intensive sourcing activities allow us exclusive access to transactions with fund managers, whom we usually accompany as an anchor investor and thus generate a variety of co-investment opportunities with very attractive economic conditions.
Our goal is to build a robust and diversified portfolio of 40 to 50 co-investments together with leading, specialized fund managers. In this way, we enable our investors to invest in a broad pan-European portfolio with an attractive risk-reward profile. With a net return of over 20% p.a. and a repayment factor (DPI) of 50% at the end of the investment period, our first co-investment fund demonstrates the attractiveness of our investment strategy.
A strong commitment to responsible ESG investing
Responsible investment in compliance with environmental, social and governance (ESG) principles is at the heart of our corporate philosophy, as evidenced by our numerous initiatives and commitments. With this in mind, all of NORD Holding’s new investment products will be classified as SFDR Article 8 funds.
With over 50 years of history and assets under management of € 3.0 billion, NORD Holding is one of the leading private equity asset management companies in Germany. The focus is on the business areas of direct investments and fund of funds investments.
The focus of the direct business is on the structuring and financing of corporate succession models, the acquisition of group divisions/subsidiaries and the expansion financing of medium-sized companies. In contrast to most other financial investors, which only manage funds with a limited term, NORD Holding acts as a so-called "evergreen fund" with no term restrictions and invests from its own balance sheet. The company is currently involved in more than 15 companies in Germany and other German-speaking countries.
The Fund Investments division targets the small-cap segment of the European private equity market and focuses on primary, secondary and co-investments. NORD Holding concentrates strongly on buyout managers newly established on the market, operational investment strategies and regularly acts as an anchor investor.