The state of Nordic
private equity 2020.

Argentum

Venture exits by year and home country of company

Nordic venture: PE-backed exits by country, 2020

Increase in trade sales: The most popular exit strategy in 2020 was sale of the portfolio company to an industrial buyer (trade sale), which accounted for 85 %. This is a relatively high level, compared to the average in the last ten years (61%, see graph). 7 % of exits were share sales in public VC-backed companies. A relatively small share of exits was secondary exits, making up only 5 %, compared to the average share of 8 % in the previous five years.

The most popular exit strategy in 2020 was sale of the portfolio company to an industrial buyer

(trade sale), which accounted for 85 %. This is a relatively high level, compared to the average in the last ten years (61%, see graph). 7 % of exits were share sales in public VC-backed companies. A relatively small share of exits was secondary exits, making up only 5 %, compared to the average share of 8 % in the previous five years.

Launched in January 2021 as a fully owned portfolio company of Altor V.

Will invest in companies working with digital strategy and sales & marketing, through both services and software.

Aims to have a turnover between 1-1.5 bn NOK in 2021, according to CEO Eivind Roald. In 3-4 years, the expectations are around 3-5 bn NOK.

Buyout funds completed 104 deals in the Nordics in 2020.

There were 20 % fewer deals than the average between 2015-19.

Buyout funds invested €7,8 bn in Nordic companies in 2020

There was a 4 % decrease in the invested amount compared to the average in the last five years. 

The ICT sector attracted 39 % of all deals, making it the largest sector for the first time in Argentum’s tracking of the Nordic market.

Fewer deals, stable invested amount: Even though the number of deals is the lowest since 2013, the amount invested is relatively high compared to historical levels.

Even though the number of deals is the lowest since 2013, the amount invested is relatively high compared to historical levels.

Buyout deals, share per county 2020 (amount invested)

Buyout investments (amount) by home country of company

Caia Cosmetics, Cura of Sweden, Danelec Marine, Evondos, Stratsys

Beijer Ref, Chr. Hansen Natural Colors, IFS, Molslinjen, 

Klinikk For Alle, Sandbäckens, Sushi Yama

Number of deals by home country of investor, 2020

Nordic and non-Nordic fund managers' share of investments

What: Developer of software and systems for digital identity management and electronic signatures.

In total, Nordic buyout funds raised €26 bn during 2020, a new record in a single year.

In the last ten years, only two years have surpassed €20 bn in fundraising: 2018 and 2020.

Last year, the three biggest fund closings amounted to €23.5 bn and almost 2/3 of all capital raised in the previous ten years.

Fifteen small- and mid-cap funds made up the remaining €2.4 billion.

Total fundraising by fund size in Nordic buyout

2020 saw the lowest number of buyout exits since 2010, 68 in total.

Compared to the average for the period 2015-19, the level was 24 % lower. 

69 % of all exits were completed in the second half of 2020. 

Sweden was the only Nordic country that experienced an increase in the number of exits compared to 2019.

Norway and Finland experienced a substantial decline in exit activity. 

Buyout exits by year and home country of company

Nordic buyout: PE-backed exits by country, 2020

Two strategies stand out: First, trade sale – the sale of a company, or part of a company, to another business – was the strategy used in 50 % of all exit transactions. Next, secondary exit – the sale of a company from a PE fund to another PE fund – was used in 32 % of all instances.

: First, trade sale – the sale of a company, or part of a company, to another business – was the strategy used in 50 % of all exit transactions. Next, secondary exit – the sale of a company from a PE fund to another PE fund – was used in 32 % of all instances.

What: Designs, develops, and conducts tailor-made customer acquisition campaigns on behalf of clients like Amnesty, Porsche (see video above), and Apple Pay.

Interview with Henrik Lisæth, Explore Equity

 Explore invested in a 40 % share of the company in 2018.

Median entry multiples for Nordic buyouts

Private equity firms use multiples to understand the price that they are paying for a company relative to a financial metric.

One of the most common valuation multiples is the ratio between EV and EBITDA.

EV is the enterprise value or the total value of a company.

EBITDA is earnings before interest, taxes, depreciation, and amortisation. In other words, the company’s operating income.

Median entry multiples, buyout vs. all Nordic deals

24 out of 82 Nordic IPOs during 2020 were PE-backed

7 listings on Nordic main markets and global markets

17 listings on alternative Nordic markets

Surge in IPOs in the second half of 2020: 19 in total, six main listings

PE-backed IPOs by home country of listed company

Round-up of Nordic private equity in 2020

Aggregate value invested in the Nordic venture segment; a 116 per cent increase compared to the average between 2015-19.

Number of Nordic venture deals, a new record in Argentum’s tracking of the market.

Increase in the amount of health care and life science deals compared to the average between 2015-19.

2020

Nordic companies in the ICT sector was involved in 55 per cent of all VC deals in 2020.

Aggregate value invested in the Nordic buyout segment; a 4  per cent decrease compared to the average between 2015-19.

Number of Nordic buyout deals; a 20 per cent reduction compared to the average between 2015-19.

Increase in the amount of ICT deals compared to the average between 2015-19.

One-third of all investors in the buyout segment were Non-Nordic, an all-time high in Argentum’s tracking.

Fundraising by Nordic venture funds in 2020, a 12 per cent decrease compared to the average in the last ten years.

Estimated fundraising by Nordic venture funds in 2021, which would be a relatively solid year.

Fundraising by Nordic buyout funds in 2020, a record-breaking amount.

Three large-cap funds raised 9/10 of the total fundraising in the buyout segment in 2020.

The combined number of exits in the venture and buyout segments, down 30 % compared to the average between 2015-19.

The number of VC-backed exits was 55, 40 % lower than the average between 2015-19.

The number of exits in the buyout segment was 68, 24 % lower than the average between 2015-19.

PE-backed IPOs in the Nordics in 2020

Twenty-four private equity-backed IPOs were completed in 2020, compared to five in 2019.  

Founded in 2015 and headquartered in Stockholm, Sweden.

Seeks fast-growing, innovative, and technology-driven companies across all industries, from anywhere in the world, with a focus on Europe and the US.

The fund aims to support great entrepreneurs throughout different stages of growth, providing access to capital and in-depth specialist experience.

A record-high number of venture deals, 301 in total.

A 13 % increase in deals compared to the average between 2015 and 2019.

Fund managers invested around €1.6 bn in the Nordics.

There was a 116 % increase in the invested amount compared to the average in the last five years.

Both the number of deals and the invested amount is rising for the third straight year.

Growing: Both the number of deals and the invested amount is increasing for the third straight year. 

 Both the number of deals and the invested amount is increasing for the third straight year. 

Venture capital deals by sector historically

Venture capital deals by home country of company, 2010-2020

The largest finance rounds sponsored by venture funds in 2020, total capital in round (€)

 Only finance rounds where new investors participated are included. If all participating VC funds were existing owners, the finance round are excluded.

Silver Lake, Blackrock, Northzone Ventures, Permira, Sequoia Capital, Technology Crossover Ventures

Dawn Capital, AAC Capital, Heartcore Capital, Insight Partners, Eurazeo

Adjuvant Capital, Industrifonden, Wellington Partners

Highland Capital Partners, Institutional Venture Partners, Open Ocean Capital

What: A solution for one-to-one video calls between professionals and their clients or patients.

Nordic venture funds raised €906m in 2020 compared to almost €3bn in 2019.

In total, there were 24 fund closings in 2020 compared to 17 in 2019.

None of the funds that closed in 2020 exceeded €100 million. 

Fundraising by Nordic venture funds, 2011-2020

 Only includes funds with a public closing in 2020.

Fundraising split by home country of fund manager

What: Sweden’s largest online grocery store, which offers a wide selection of food, ranging from everyday pantry items to sought-out delicacies.

Venture funds completed 55 exits of Nordic companies in 2020.

This was a minor upswing from 2019 (48 exits), following three years of decreasing numbers.

Most VC-backed exits involved ICT companies (60 %).

Health care and life sciences was the second largest sector (20 %). 

The state of Nordicprivate equity 2020.

2. Round-up of Nordic private equity in 2020

The state of Nordic
private equity 2020.