The state of Nordic private equity 2023

Argentum

Share of venture investments in the health care sector in 2023. This is 5 percentage points up compared to 2022.

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"I think we are seeing an increasing number of interesting opportunities across Europe and the US, with talent emerging outside of the historical tech hubs. There are now 2nd and 3rd generations of startups emerging from companies like Spotify, Klarna, UIPath, and Wise, to name a few. At the other end of the spectrum, we are observing many entrepreneurs working through challenging market conditions, something which we've witnessed firsthand in our portfolio as well."

“I would be very excited as an entrepreneur starting today”

New sector: Financials has only been counted as a separate sector in Argentum’s tracking for the last couple of years, and the sector already has a significant market share. 

Financials has only been counted as a separate sector in Argentum’s tracking for the last couple of years, and the sector already has a significant market share. 

Active international fund managers: Fund managers from the rest of the world made the most investments in Nordic venture and growth in 2023, with 22 percent of the Nordic market. 

Fund managers from the rest of the world made the most investments in Nordic venture and growth in 2023, with 22 percent of the Nordic market. 

VC & Growth fundraising: Amount raised declined in 2023

In total, venture and growth funds secured €1.7 billion in funding. The fundraising level varies a lot over time. 2022 was an astonishing year for fundraising in the venture and growth segment, while fundraising in 2023 was significantly lower. Going into 2024, our overview indicates that Nordic venture funds will raise around €1.6 bn this year. 

Nordic venture funds raised €1.7 bn in 2023 compared to €7.1 bn in 2022. 

Amount raised in 2023 was well below the five-year average. 

Five funds exceeded €100 m in 2023, compared to seven in 2022 and five in 2021

 NB: Only taking public closings into account.

According to the overview, the total amount of capital in the fundraising pipeline for 2024 is €1.6 bn.

The drop in funds raised could be attributed to the decrease in venture exits. With fewer exits, investors have less capital available for reinvestment into new funds. The distribution of fundraising activity was relatively uniform throughout the year, with a 40/60 split between the first and second halves.

Despite the decline in the amount raised in 2023 compared to 2022, the number of funds that closed was only reduced by 30 percent. Therefore, the decrease in the total amount raised was mainly due to a lower average amount of funds raised per closing.

The decline in fundraising was observed across all Nordic countries, with Sweden experiencing the most significant reduction, after raising record-breaking amount of capital in 2022. Norwegian funds raised the most capital in 2023. 

Denmark

Finland

Norway

Sweden

Fundraising split by home country of fund manager

Norway on top: Norwegian funds raised the most capital in 2023, at more than €0.6 bn. After reaching new record levels in 2022, Swedish fund managers pulled back their fundraising almost 90 percent in 2023. 

Norwegian funds raised the most capital in 2023, at more than €0.6 bn. After reaching new record levels in 2022, Swedish fund managers pulled back their fundraising almost 90 percent in 2023. 

 2 023 

Fundraising split by home country of fund manager in 2023

Norway on top: Norwegian funds raised the most capital in 2023, followed by Sweden. Combined, Norway and Sweden raised 68 percent of total Nordic fundraising. 

Norwegian funds raised the most capital in 2023, followed by Sweden. Combined, Norway and Sweden raised 68 percent of total Nordic fundraising. 

public information, either on the funds’ websites or according to news stories.

 Only includes funds with a public closing in 2023.

Fundraising expected to remain at 2023-levels in 2024

A total of 21 funds in Nordic venture have closing in their pipeline, according to our overview. A lot of funds are in the market for funding, and activity is expected to remain at the same levels in 2024. As the graph below shows, funds with an aggregated target amount of €1.6 billion are in fundraising. However, it is still too early to tell how many will succeed in their fundraising efforts in 2024. 

Kapitalinnhenting av venturefond, 2015-2022

Fundraising by Nordic venture and growth funds, 2012-2023

Cyclical fundraising: As the graph shows, the fundraising level varies a lot over time. 2022 was an astonishing year for fundraising in the venture and growth segment, while fundraising in 2023 was significantly lower.

 As the graph shows, the fundraising level varies a lot over time. 2022 was an astonishing year for fundraising in the venture and growth segment, while fundraising in 2023 was significantly lower.

Continue by pressing the arrow on the right 

Venture funds completed 28 exits of Nordic companies in 2023.

VC exits decreased by 45 percent from 2022, and by 62 percent compared to the previous five years. 

Most VC-backed exits involved ICT companies (36 percent).

Health care and life science was the second largest sector (29 percent). 

Number of deals in the VC & Growth segment in 2023

“We need to work harder and think outside of the box”

Nordic venture and growth exits (excluding write-offs), 
2012-2023

 ICT sector dominating: ICT exits accounted for 36 percent of exits in the venture segment, followed by health care and science and industrials companies. 

 ICT exits accounted for 36 percent of exits in the venture segment, followed by health care and science and industrials companies. 

 venture and growth exits split by sector

Venture and growth exits by year and home country of company in 2018-2023

 venture and growth exits split by exit type in 2023

Increase in secondary exits: Secondary exits made up 43 percent of venture exits in 2023, compared to an average share of 30 percent of exits in the previous five years The second most popular exit strategy in 2023 was trade sale, with 30 percent of exits. 

Secondary exits made up 43 percent of venture exits in 2023, compared to an average share of 30 percent of exits in the previous five years The second most popular exit strategy in 2023 was trade sale, with 30 percent of exits. 

Invested in Nordic Buyout companies in 2023

108 buyout deals were completed in 2023, representing a decline from 2022. 

19 percent fewer deals than in 2022, and 26 percent fewer than the average for the previous five years.

Total number of deals in the Nordic Buyout marked 

Buyout funds invested €10.7 bn across these deals. 

6 percent decrease in the invested amount compared to the average in the previous five years. 12 percent increase if we exclude 2021 from the comparison.

The decrease in total number of investments was primarily driven by less activity within the health care and services sector. 

Industrial companies attracted the most investments, with 38 percent of deals.

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 describes the nature of the overall market in 2023 like this:

“2023 presented a lot of uncertainty both in terms of macroeconomic outlook, geopolitics, and financial markets, which obviously is a challenging backdrop for both investment decisions and managing portfolio companies”

 Fewer deals but more invested capital: The number of investments in the Nordic buyout segment declined in 2023, but invested amount increased. 

The number of investments in the Nordic buyout segment declined in 2023, but invested amount increased. 

Nordic buyout deals by half year, 2017-2023

 Most active fund managers in terms of investments in new portfolio companies. Add-on investments not included.

Lakers Group, Remagruppen, River Group, Stenbolaget

The Norwegian fund manager, Equip, was one of the most active fund managers in the Nordics according to our data. 

, Founding Partner of Equip, says this about their investment activity in 2023:

“We kept on investing, notably in three new solid platform companies in Fund II, and we also continued our active M&A agenda in many of our existing portfolio companies.” 

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 of deals by home country of investor, 2023

In total, Nordic buyout funds raised €7.2 bn during 2023, down from €28.9 bn in 2022. 

15 funds closed in 2023, up from 14 in 2022. 

The three largest funds accounted for almost 60 percent of capital raised. Hence, the largest funds were less dominating in 2023 than in 2022, when the two largest funds accounted for over 90 percent of total capital raised.

small-cap funds experienced a 45 percent increase in their fundraising. The fundraising expectations for 2024 are positive, with €18.9 bn in the pipeline. 

 fundraising by fund size in Nordic buyout

Top 10 Nordic buyout funds with public closing

public information, either on the funds’ websites or according to news articles.

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Norvestor is one of the more experienced players in the Nordics, having been in the industry for over 3 decades, the private equity firm has been through several cycles previously. Their general strategy of investing in resilient businesses across the Nordics has stayed the same. In November 2023 they announced the closing of their fund, Norvestor IX, at hardcap EUR 1.5 billion. 

PE- backed exits in the Nordics, 
2019-2023

The number of exits was halved compared to the record-high level in 2021. 

Compared to the average for the period 2018-22, the level was 24 percent lower. 

Nordic buyout exits (excluding write-offs), 
2012-2023

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Secondary exits top: For the second consecutive year in a row, secondary exits have emerged as the preferred approach, representing 45 percent of buyout exits in 2023. 

 For the second consecutive year in a row, secondary exits have emerged as the preferred approach, representing 45 percent of buyout exits in 2023. 

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Sectorial view: There was almost no change in the sector composition for exits compared to the average over the last five years. Industrials was still the sector with the most exits, with 38 percent of exits. 

There was almost no change in the sector composition for exits compared to the average over the last five years. Industrials was still the sector with the most exits, with 38 percent of exits. 

Meet the partners of Helix Kapital: Stefan Lambert, Mattias Ericsson and Joakim Karlsson. Despite challenging market conditions, these partners have accumulated several achievements over the past year.

 Stefan Lambert, Mattias Ericsson and Joakim Karlsson. Despite challenging market conditions, these partners have accumulated several achievements over the past year.

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"Despite some short-term macro uncertainties, the megatrends of software investments continue. The demand for business-critical software with a well-defined value proposition remains strong. This means that high quality software companies are still high in demand, reflected in stable or even increased valuations. However, there may be a trend towards decreasing valuations for lower-quality software companies.“

Buyout exits by year and home country of company

Nordic buyout: PE-backed exits by country,

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“The strategy turned out to be even more successful than we had hoped, and we reached our goals 1-2 years before planned”

- Tor Erling Gunnerød, Partner at Norvestor  

“In my view Private Equity offers both funding and growth expertise more efficiently than other business models” 

- Jan Inge Pedersen, CEO and Co-founder of Kabal

Median entry multiples for Nordic buyouts

Prices decreased in 2023 but are above historical average.

 in 2023 but are above historical average.

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.

A Swedish growth-oriented investment firm established in 2008. 

Invests primarily in unlisted companies in the Nordics, with proven and profitable business models. 

Their established investment themes are industrial innovation, sustainable developments, and digital transformation. 

Raised their third fund during 2023 which closed March 2024, hitting its hard-cap during the fundraising process.

Only 1 Nordic IPO was PE-backed in 2023. This was the listing of Beerenberg Corp., backed by Segulah Advisors. 

The company was listed on Euronext Growth in Oslo in October. 

The number of PE-backed IPOs decreased from 9 in 2022, and 59 in 2021.

“For larger assets with a strong rationale for a public listing we would not be surprised to see an open window in 2024”

 Fredrik Gyllenhammar Raaum, Partner at Norvestor

“We believe 2024 will see an increase in transaction volumes driven by reduced uncertainty, strategic and financial buyers with funds to deploy and stronger credit markets. Re-evaluating investment themes and updating strategies for our technology enabled services investments to incorporate both the immense potential but also risks resulting from the development in generative AI will characterize my 2024”.

“I think the PE industry is optimistic and more deals will happen this year. While there is still a low appetite for high-risk assets, the demand for high-quality assets continues to be strong”. 

“At the earlier stages of venture, we are already back to pre-2021 levels in terms of dealflow, volumes, velocity, valuations, and so all in all, we are very excited and optimistic for what's to come in 2024. So, to summarize, maybe back to business!”

“2024 will continue to be characterized by the monetary policy response to inflation as well as the numerous geopolitical uncertainties. Our portfolio consists of companies that can withstand a recession, with solid and profitable business models and strong market positions. We also recently raised a new Fund II. That serves us well in uncertain times. It is a good environment to invest, so we have a high priority on sourcing both new platform deals as well as executing on what is currently a very strong pipeline of add-on acquisitions”. 

The Energy Sector comprises companies engaged in exploration & production, refining & marketing, and storage & transportation of oil & gas and coal & consumable fuels. It also includes companies that offer oil & gas equipment and services.

The Industrials Sector includes manufacturers and distributors of capital goods such as aerospace & defense, building products, electrical equipment and machinery and companies that offer construction & engineering services. It also includes providers of commercial & professional services including printing, environmental and facilities services, office services & supplies, security & alarm services, human resource & employment services, research & consulting services. It also includes companies that provide transportation services.

Includes both consumer discreationary and consumer staples.

The Consumer Discretionary Sector encompasses those businesses that tend to be the most sensitive to economic cycles. Its manufacturing segment includes automobiles & components, household durable goods, leisure products and textiles & apparel. The services segment includes hotels, restaurants, and other leisure facilities. It also includes distributors and retailers of consumer discretionary products.

The Consumer Staples Sector comprises companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco and producers of non-durable household goods and personal products. It also includes distributors and retailers of consumer staples products including food & drug retailing companies.

The Health Care Sector includes health care providers & services, companies that manufacture and distribute health care equipment & supplies, and health care technology companies. It also includes companies involved in the research, development, production and marketing of pharmaceuticals and biotechnology products.

The Financials Sector contains companies engaged in banking, financial services, consumer finance, capital markets and insurance activities. It also includes Financial Exchanges & Data and Mortgage REITs.

The Information Technology Sector comprises companies that offer software and information technology services, manufacturers and distributors of technology hardware & equipment such as communications equipment, cellular phones, computers & peripherals, electronic equipment and related instruments, and semiconductors and related equipment & materials.

The Utilities Sector comprises utility companies such as electric, gas and water utilities. It also includes independent power producers & energy traders and companies that engage in generation and distribution of electricity using renewable sources.

Global Industry Classification Sector: Definitions. Source: GICS, processed by Argentum

 Definitions. Source: GICS, processed by Argentum

“We believe that companies can build long-term competitive advantages by addressing sustainability challenges through their business models”

The number of venture and growth deals fell from 388 in 2022, to 297 in 2023. 

Fund managers invested €1.5 bn in Nordic venture and growth companies. 

After declining in the second half of 2022, the number of investments picked up in the first half of 2023. The increase in investments continued in the latter half. 

Compared to the average for 2018-2022, the invested amount was down 13 percent.

Investments by venture and growth funds in Nordic companies in 2023

Amount invested in Nordic venture and growth in 2023

Yearly view: Number of investments in unlisted Nordic early phase companies declined in 2023. 

 Number of investments in unlisted Nordic early phase companies declined in 2023. 


Quarterly view: The negative trend in investments in the second half of 2022 continued in the first half of 2023. After bottoming out in the second quarter of 2023, the number of investments picked up in the latter half of 2023. 

The negative trend in investments in the second half of 2022 continued in the first half of 2023. After bottoming out in the second quarter of 2023, the number of investments picked up in the latter half of 2023. 

 venture and growth deals by quarter, 2023

Fund manager	Fund	Country	Raised in closing (€m)
Verdane	Verdane XI	Norway	605
Monterro	Monterro G1	Sweden	150
Nordic Alpha Partners	Nordic Alpha Partners Fund II	Denmark	150
Lifeline Ventures	Lifeline Ventures V	Finland	150
Sound Bioventures	Sound Bioventures Fund I	Sweden	116
Pale Blue Dot	Pale Blue Dot II	Sweden	93
eEquity	eEquity V	Sweden	90
Kvanted Ventures	Kvanted Industrial Tech Fund	Finland	70
Climentum	Climentum Capital Fund I	Denmark	60
Hadean	Hadean II	Norway	54

The state of Nordic private equity 2023

5. VC & Growth fundraising: Amount raised declined in 2023

Top 10 Nordic venture funds that closed in 2023

Fundraising expected to remain at 2023-levels in 2024

Continue by pressing the arrow on the right

The state of Nordic private equity 2023

5. VC & Growth fundraising: Amount raised declined in 2023

Top 10 Nordic venture funds7 that closed8 in 20239

Fundraising expected to remain at 2023-levels in 2024

Continue by pressing the arrow on the right

Top 10 Nordic venture funds that closed in 2023