Kaupthing Bank is committing £200 million to its first third party private equity fund, Kaupthing Capital Partners II ("KCPII"), and has raised an additional £300 million from third party investors. Kaupthing will therefore own 40% of the total £500 million in the fund.
The third party investors are primarily pension funds, investment companies and high net worth clients. Kaupthing initially intended to raise between £100 and £200 million from investors but due to excess demand the amount was increased to £300 million. Kaupthing plans to close the fund in the next few weeks.
Future unlisted investments made by the bank will be held by KCPII, which will be managed by Kaupthing Principal Investments, the in-house private equity team. Assets in private equity owned by the bank at the end of last year will not be held by KCPII.
The establishment of the fund will increase transparency and provide clarity and discipline over Kaupthing Bank's private equity investment strategy. The fund will also enable the Bank to take part in larger and more numerous projects and increase activity within other business segments of the Bank.
For further information please contact:
Jónas Sigurgeirsson, Chief Communication Officer, tel +354 444 6112.
David Sherratt, Head of Kaupthing Principal Investments, tel: +44 203 205 5540.
Kaupthing raises £500 million for its first third party private equity fund
| Source: Kaupþing banki hf.