Verdane closes Idun II fund at € 700 million hard cap
Copenhagen — Verdane, a European private equity firm specializing in growth capital, has announced the successful final closing of the Verdane Idun II fund (“Idun II” or “the Fund”) at a hard cap of EUR 700 million. This is more than double the size of its predecessor fund with a volume of EUR 300 million. The Fund will invest in companies focused on the structural growth trend of decarbonization. The investment focus of Idun II is on investing in ambitious growth companies that contribute to more sustainable social development. Idun II is a fund classified under Article 9 of the EU Financial Information Regulation, which will focus on investments in the areas of energy transition and resource efficiency that contribute to the decarbonization of the economy. The Idun funds each invest between 20 and 100 million euros in sustainable companies. All Idun II investments are linked to strict sustainability criteria in order to make their positive impact on the environment measurable. This includes, for example, the goal of avoiding at least 5,000 tons of CO2 for every million euros invested. Verdane has offices in Berlin, Copenhagen, Helsinki, London, Munich, Stockholm and Oslo. To ensure that Idun II only invests in companies that have the potential to be successful in a sustainable economic environment, Verdane applies its own so-called “2040 test”. Further information on the test can be found in Verdane’s current Sustainability Report 2023. Verdane successfully closed the Edda III mid-market growth buyout fund at the beginning of the year with a hard cap of 1.1 billion euros. This brought Verdane’s assets under management to over 8 billion euros. The third fund strategy, Freya, which has been successful for more than 20 years, currently invests through the Freya XI fund with a sophisticated and broadly diversified mandate that invests in both company portfolios and individual companies. Verdane is a pioneer in sustainable investments and has supported a total of 42 companies in this area since 2003. The investment company has developed a unique approach to measuring CO2 avoidance (more information can be found in the corresponding white paper on Verdane’s homepage) and carries out a comprehensive sustainability assessment for all companies in the Idun portfolio. Current investments in the first Idun fund include NORNORM, a provider of innovative office furniture rental models that enable companies to reduce their greenhouse gas emissions, and Scanbio, a leading producer of high-quality fish protein concentrates and oils that specializes in the recycling of residual products and enables companies to reduce the use of resource-intensive raw materials.
Idun II has capital commitments from investors including Nysnø Climate Investments, the Norwegian state climate investment fund, Banque de Luxembourg, the European Investment Fund, MN, a provider of fiduciary services to Dutch pension funds, the Finnish investment company Tesi and Carbon Equity, a provider that enables private and professional investors to invest in a diversified portfolio of the world’s best climate funds. Other investors in Idun II include several global private and public pension funds, leading university funds, foundations, insurance companies and family offices. The fund was closed within just five months. Most of the commitments for Idun II come from non-profit organizations and investors committed to the common good. — Verdane’s international investor base is growing continuously. In total, investors from more than 13 countries are participating in Idun II. US investors alone account for 29 percent of the capital commitments. Verdane’s thematic investment approach focuses on leading European companies in the fields of digitalization and decarbonization of the economy. Verdane has consistently invested in these two growing megatrends and has backed 16 European companies with more than 600 million euros in the last twelve months. Verdane offers growth companies a comprehensive set of tools and in-depth industry knowledge. With a team of more than 150 investment professionals and a local presence in the core European markets, Verdane has exclusive access to the best technology companies in the region. In addition, Verdane’s platform has a benchmarking tool with more than 100 million data points and a unique network of over 600 experienced executives with extensive industry expertise. Verdane’s portfolio companies are further supported by Elevate, an in-house team of 35 operational experts with extensive knowledge in all areas required to scale growth companies. Frida Einarson, Partner, Investor Relations at Verdane (photo © Verdane), said: “The fact that we have succeeded in mobilizing private capital at scale in 2024 to build a more sustainable economy is not only good news for our industry, but also for our planet. We look forward to welcoming existing and new investors to Idun II and are confident that we will achieve both high returns and measurable and demonstrable positive effects for the climate.” Bjarne Kveim Lie, Founder and Managing Partner of Verdane, said: “With Idun II, we want to show that it is possible to deliver best-in-class returns for investors while making an important contribution to the decarbonization of our economy. We are convinced that decarbonization is a generational megatrend and we want to be the growth partner of choice for the companies best positioned to benefit from this trend and help them realize their full potential.” “Our team of specialists in the field of decarbonization now comprises 13 experts, making it one of the largest in Europe.
Supported by our 35-strong Elevate team, they benefit from the networks and experience of the entire company, which has helped sustainable European growth companies to scale over the past two decades. This enables us to further deepen our expertise in the structural growth trend of decarbonization and to support our portfolio companies in their growth with a local presence in the key markets of Northern Europe. We are very pleased with the great confidence of our investors and will do our utmost to meet their high expectations.” Verdane Idun II was advised by Rede Partners, an independent fundraising advisor to the private equity industry, and legally by Andulf Advokat AB.
About Verdane
Verdane is an investment company specializing in growth capital that supports companies with sustainable and technology-based business models. Verdane invests as a minority or majority investor in individual companies or company portfolios and focuses on two core themes: Digitalization and decarbonization. Verdane’s funds have capital commitments of more than 8 billion euros. Since 2003, the company has invested in over 400 fast-growing companies. Verdane has more than 150 employees, with offices in Berlin, Munich, Copenhagen, Helsinki, London, Oslo and Stockholm, and is committed to being the best growth capital partner in Europe. Verdane has a B‑Corporation certification, which is considered the world’s most demanding in the area of sustainability. In addition, the investment company only supports companies that pass the 2040 test. This examines whether the company can be successful in a more sustainable economic environment in the future. Verdane is also a shareholder in the Verdane Foundation, which focuses on two areas: Climate change and a fairer and inclusive society.