11. About the report
Argentum
Argentum Asset Management is one of the leading fund investors in Europe, with an investment portfolio that comprises more than 200 private equity funds and more than 1,300 companies. The core field of expertise is the evaluation and selection of private equity funds and fund managers. In addition to investing in newly established private equity funds, the operations include investments in private equity funds through the secondary market and co-investments with private equity funds in Argentum’s portfolio.
Argentum Asset Management manages Argentum Fondsinvesteringer, the Norwegian Sovereign Wealth Fund for private equity fund investments, as well as capital for private investors, primarily through the Argentum vintage funds, which raise capital annually.
Read more on our website.
The report
This report has been produced for information purposes only and is not to be treated as investment advice. No representation is made, or assurance given, as to any opinions, projections, forecasts, etc. provided in this report. Investment figures are calculated from equity value and exclude add-on investments. The number of exits excludes write-offs. Only Nordic companies listed on the main stock exchanges are included in IPO figures. Sources: Argentum’s data, Argentum’s estimates, public information and interviews with selected fund managers.
Definitions
Classification of small/medium- and large-cap companies
In the report, we have categorized companies into small/mid-cap and large-cap companies. We have chosen not to distinguish between small- and mid-cap companies, but rather to combine them into a single category.
To classify investee companies into small/medium and large-cap categories, we applied the following methodological approach:
- Companies where the enterprise value exceeds EUR 500 million are categorized as large-cap. The values have been estimated where no public value is available.
When classifying exited companies into small/medium and large-cap, we have followed a three-step approach. First, we have identified companies that may potentially be categorized as large-cap based on the manager exiting the company.
Next, we conducted a manual check of other exited companies and tagged those which we believe may be large-cap based on our market knowledge. Finally, we gathered financial data (e.g. market cap and revenue) on all the companies on the list of potential large-cap exits and used the data to evaluate whether they are indeed large-cap companies.
Moreover, in the remaining of the report, the invested amount considers only the invested amount by the fund and does not account for the enterprise value.
Industry classification
In this report, we use an industry classification that roughly relies on the Global Industry Classification Sector (GICS).
| Industry | Description |
|---|---|
| Energy | 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. |
| Industrials | 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. |
| Consumer | Includes both consumer discretionary 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. |
| Health Care | 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. |
| Financials | 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. |
| ICT | 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. |
| Utilities | 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. |
| Other | Includes Real Estate, Materials |
Thank you
We would like to thank Jonas Bäckman at Main Capital Partners, Fredrik Korterud and Håvard Berge at Norvestor for sharing their insights and contributing to this report.
A special thanks to Tor Rønhovde and Bjørn Anskau for letting us portray 4Service and Millum respectively, as cases in this report.