Verdane is returning to fundraising with Edda IV, a Europe-focused fund targeting €1.6bn — €500m above what its predecessor raised. The Oslo-based firm's move into the lower mid-market signals appetite for deal flow across the continent despite broader market headwinds affecting larger fund sizes.

The lower mid-market segment targets companies typically valued between €50m and €500m, a space where Verdane has built a track record. Raising €500m more than the prior fund reflects investor confidence in Verdane's strategy and Europe's private equity pipeline.

That increase still leaves room for limited partners to assess execution risk. Verdane needs strong deal flow through Edda IV to justify the higher target and maintain its edge in a crowded European fund market.