IK Partners (“IK” or “the Firm”), a leading European private equity firm, is pleased to announce that it has closed its fourth Small Cap fund, the IK Small Cap IV Fund (“IK SC IV” or “the Fund”), at its hard cap with commitments of €2.0 billion. The Fund’s predecessor, IK Small Cap III, raised €1.2 billion in 2021.

IK SC IV was oversubscribed at its hard cap in less than six months after its launch, having attracted significant interest from a high-quality institutional investor base across EMEA (71%), North America (18%) and Asia (11%). 80% of the capital raised is from existing investors across the IK Platform, reflecting continued investor confidence and support.

The Fund has already made one investment and will continue to employ the same investment strategy focused on growing business across IK’s core sectors of Business Services, Healthcare, Consumer and Industrials, supporting companies with enterprise values between €80 million and €200 million. Like its predecessor, IK SC IV also includes a dedicated pool of Development Capital (€600 million) which will focus on investing in smaller companies valued between €20 million and €80 million.

IK launched its Small Cap strategy in 2015 and has since invested in 56 transactions across four funds. Collectively, the funds have thus far realised a total of over €2.1 billion in proceeds, representing 128% of invested capital. This translates into a money multiple of 3.1x on the 25 investments exited.

The closing of the IK Small Cap IV Fund follows a period of record deal activity for IK, which saw it invest in 21 new companies and exit 11 since the start of 2024. During this period, the Firm also held closes on funds totalling in excess of €6 billion in commitments, including €505 million raised for the IK Strategic Opportunities I Fund — its first continuation fund — in April 2024 and more recently, the €3.3 billion close of the IK X Fund, IK’s 10th Mid Cap fund, in April 2025.

Christopher Masek, CEO of IK Partners, said: “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 arewell positioned to continue supporting ambitious businesses and creating long-term value across our portfolio.”

Kristian Kemppinen, Managing Partner and Head of Small Cap Strategy, commented: “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.”

Mads Ryum Larsen, Managing Partner and Head of Investor Relations, said: “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.”

For further questions, please contact:

IK Partners
Vidya Verlkumar
Phone: +44 (0) 7787 558 193
vidya.verlkumar@ikpartners.com

H/Advisors Maitland
Finlay Donaldson
Phone: +44 (0) 7341 788 066
finlay.donaldson@h-advisors.global