O’Melveny Represents eEquity in First Closing of Nordic-focused Venture Capital FundSeptember 11, 2015 FOR IMMEDIATE RELEASE
O’Melveny & Myers LLP
LONDON--SEPTEMBER 11, 2015 --O’Melveny & Myers LLP represented eEquity on the first closing of its latest fund, eEquity III. The fund, valued at €60 million (approximately US$67 million), is supported by existing and new European institutional investors. The fund was marketed to investors across the EU using the EuVECA Regime, which took effect in 2013 and allows sub-threshold alternative investment fund managers investing in venture capital to benefit from a marketing passport in order to market to EU investors.
The O’Melveny team was led by partner John Daghlian, counsel Mary Richards, and associate Edward Mason.
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The following press release was issued by eEquity:
FOR IMMEDIATE RELEASE
Stockholm, 7 September 2015
eEQUITY III REACHES FIRST CLOSE
eEquity, the leading growth investor in Nordic Internet companies completes the first closing of its latest fund, eEquity III, at EUR 60 million, supported by existing and new European Institutional investors
eEquity III will build upon the successfully investment strategy implemented in eEquity II, providing growth capital to proven, fast growing and profitable Nordic Internet companies active within the internet retail and services sectors.
eEquity works actively with its portfolio companies to support them in becoming Nordic market leaders by accelerating growth organically and via selective add-on acquisitions. The firm's approach to value creation was most recently demonstrated by the exit of WhiteAway which generated returns in excess of 4.5 times invested capital without leverage. Value creation was achieved through launch across the Nordics, increased product assortment, private label and two add on acquisitions leading to an increase in revenues from DKK 150 million to more than one billion at exit after 3.5 years. IRR amounted to 76%.
The portfolio in eEquity II has experienced an average annual growth rate of 60% since date of investment until today. Royal Design (home decoration) has in three years gone from SEK 90 million to approx. 5 times sales under profitability by expansion to more markets, increased product assortment and favorable add on acquisitions of Cervera franchise stores and Rum 21. Footway (shoes) has in four years gone from SEK 3 million to approx. 280 million by building a strong consumer brand, increased product assortment and favorable add on acquisitions of Heppo, Brandos and RunForrest. Footway is also profitable.
Patrik Hedelin, Partner at eEquity, said: “We are very proud of reaching the first close of eEquity III with the support of both existing and new investors. Given our sector focus on online business models in general and internet retailing in particular it has proven very valuable for the entrepreneurs to access the comprehensive competence and expertise within eEquity and our group of companies. The closing of eEquity III provides us with a solid platform to further capitalize on our strong proprietary deal flow and enables us to continue delivering strong returns to our investors.”
Legal advisors to eEquity were O´Melveny & Myers LLP in London and Cederquist in Stockholm.
Established in 2010 with the support of international institutional investors, eEquity is today the leading private equity investor for proven entrepreneurs with established companies within the Nordic internet retailing segment. The firm´s portfolio currently includes companies such as Royal Design, Footway, Eleven, Caliroots and Outdoorexpert. eEquity was founded by Magnus Wiberg and Patrik Hedelin as a continuation of their work in the online distribution sectors since the early 1999.
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