IK Investment seeks €2.5bn for flagship Fund IX

The private equity firm will continue to focus on Europe's lower mid-market.

IK Investment Partners, one of Europe’s most established mid-market private equity firms, has returned to market with its ninth flagship fund.

The London-headquartered mid-market firm is aiming to raise €2.5 billion for IK Investment Partners Fund IX, according to documents obtained by Private Equity International from the Minnesota State Board of Investment‘s investment advisory council meeting on 20 May.

Fund IX’s target is nearly 35 percent larger than the firm’s predecessor vehicle, which closed on €1.85 billion in 2016. The fund will follow the same strategy as its previous funds in the series, the documents showed.

IK declined to comment on the fundraise.

Minnesota committed €135 million to Fund IX during its 20 May meeting, the documents showed.

IK has preempted auctions or participated in limited auctions for almost 61 percent of its investments over the last 10 years, according to the documents. Most of the firm’s exits have been to a strategic or financial buyers.

The firm, which targets mid-market companies in northern Europe, may invest a small portion of Fund IX in Poland, according to the documents.

Over the last 10 years, IK has invested in businesses with an average enterprise value of €213 million. The firm will continue to focus on the lower mid-market, which has less competition from larger pan-European or global funds, Minnesota’s documents noted.

The firm is investing Fund VIII and has made 12 investments to date from the vehicle, according to its website.

Last year, IK held the final close on €550 million for its IK Small Cap Fund II which received commitments from The New York State Teachers’ Retirement System and other investors.

IK Investment was founded in 1989 and has offices in seven countries.