Kvika closes new UK lower-middle market private equity fund
Kvika announces the successful closing of HCPII (“the Fund”), surpassing its target with a strong backing from a diverse group of investors across Iceland and the UK. This milestone strengthens Kvika’s position in the UK, expanding its principal and fund investment capacity to about £100m and reinforcing its commitment to the region’s private equity market.
The Fund has garnered strong support from both investors Kvika has previously partnered with and new investors. Building on Kvika’s established track record in UK private equity, it will focus on investing in established small and medium-sized UK companies.
Targeting businesses with an enterprise value of £20-100 million, the strategy focuses on deploying equity of £5-30 million per transaction to secure influential minority or majority positions in established, high potential companies. Kvika works alongside skilled managers, industry experts, independents, and entrepreneurs, leveraging strategic consolidation and operational enhancements to drive growth, improve profitability, and support businesses on their journey to the next stage.
Richard Beenstock, CEO of Kvika UK said – “We greatly appreciate the investors' support and the shared confidence in the compelling opportunities within the resilient UK lower mid-market. Over the past few years, Kvika has been expanding its private equity capabilities in the UK, and this fundraise marks a significant milestone in strengthening our investment reach even further.
We continue to see an underserved market with strong, scalable companies ready to transition to the next stage of their development. Through strategic partnerships and with our flexible approach, we can support these businesses and their management teams in driving growth and unlocking new opportunities. We will continue to invest across all sectors, with a particular focus on consumer markets, health care, manufacturing and business services, areas that align well with the expertise within the team and the investment committee, which bring decades of experience in building and supporting businesses in these industries. The key is backing businesses with robust management teams and the potential for significant growth.
Our existing investments have demonstrated the impact of this approach—driving expansion, creating jobs, and enhancing value while strengthening the companies' competitive positions.”
The Fund is a joint initiative between Kvika bank and its subsidiaries, Kvika UK and Kvika Asset Management.
