IK Partners, a European private equity firm, has successfully closed its IK Small Cap IV Fund (IK SC IV) with €2 billion in commitments, surpassing its predecessor, IK Small Cap III, which raised €1.2 billion in 2021.
The fund attracted significant interest, with 71% of the capital coming from the EMEA region, 18% from North America, and 11% from Asia. Remarkably, 80% of the capital was raised from existing investors, indicating strong continued confidence.
IK SC IV will target growing businesses in the Business Services, Healthcare, Consumer, and Industrials sectors, with enterprise values between €80 million and €200 million. It includes a €600 million Development Capital pool for investments in smaller companies valued at €20 million to €80 million and has already made one investment.
Since launching its Small Cap strategy in 2015, IK has completed 56 transactions across four funds, realizing over €2.1 billion from exited investments. Notably, IK has invested in 21 new companies and completed 11 exits since the start of 2024, while also closing over €6 billion in commitments, including the €505 million IK Strategic Opportunities I Fund in April 2024 and the €3.3 billion IK X Fund in April 2025.
KEY QUOTES:
“We are pleased to announce the close of our fourth Small Cap fund, building on IK’s long-standing expertise in the lower mid-market. Investor appetite for this strategy continues to grow, reflecting the strength of our local sourcing model and the compelling opportunities in this segment. With record activity in 2024 and robust performance in the first half of 2025, we are well-positioned to continue supporting ambitious businesses and creating long-term value across our portfolio.”
Christopher Masek, CEO of IK Partners
“A decade after we launched our first Small Cap Fund, we continue to benefit from positive market dynamics at the lower end of the mid-market. IK’s multi-strategy offering has allowed us to remain resilient in the face of an ever-evolving landscape, with the positioning of our Small Cap strategy offering us more choice and opportunity than ever. Building on our long-established track record, we look forward to deploying IK SC IV at a disciplined pace.”
Kristian Kemppinen, Managing Partner and Head of Small Cap Strategy
“We offer our sincere thanks to each of our investors — existing and new — for continuing to place their trust in IK by contributing to the successful close of yet another Small Cap fund, the largest we’ve raised to date. Following on from the successful close of our biggest flagship fund earlier this year, we are reassured of their support and belief in the success of our investment approach. We remain grateful for their continued confidence and backing.”
Mads Ryum Larsen, Managing Partner and Head of Investor Relations
