Proventus’ first two co-investment vehicles, Proventus Capital and Proventus Capital II, turned out to be great successes and co-investors wanted to further increase its investments.

At the same time, in 2013, increased regulation including the Alternative Investment Fund Manager (“AIFM”) framework implied administrative burden and limitations on investment flexibility on managers of external capital.

To enable Proventus to act with full flexibility and to limit the administrative and regulatory burden Proventus Capital Partners III was structured as an Alternative Investment Fund, instead of as subsidiary, and managed by a AIFM licensed management company fully owned by its investment team. Final investment decisions were made by the AIFM.

Proventus invested a major part of its own capital in the Proventus Capital III fund. Investors from the successful co-investment vehicles Proventus Capital and Proventus Capital II followed Proventus, relying on Proventus 45 years of experience as a strategic financial partner to mid-sized companies in Northern Europe.

However, the new structure where final investment decisions were made by the manager combined with larger volumes of capital to deploy resulted in a divergence from Proventus selective lending strategy and increased the risk.

Proventus decreased its investment in the next fund, Proventus Capital Partners IV (launched in 2018), significantly and has not invested in any succeeding funds.