4. Buyout deals: Increased numbers, and all-time high amount invested
In the Nordic buyout segment, a total of 134 deals were completed in 2024. Invested amount increased significantly and reached an all-time high. Investment activity was evenly spread throughout the year in terms of number of deals.
Partner at Norvestor, Fredrik Korterud is not surprised by the overall market conditions of 2024.
– The market is stable, though not in a boom phase, with variations between sectors, he says and continues:
– The market remains selective and will likely continue to be so for some time.
However, Norvestor’s approach to sourcing new investments are well adapted also in market situations like these:
– We work very proactively, building relationships with companies over time and positioning ourselves for future processes, he says.
– The financing market has been strong, and still is, with a wide-open bond market and accessible financing from banks, Korterud adds.
Korterud’s colleague, Investment Director Håvard Berge, adds that the quality companies always attract strong attention:
– It’s the high-performing companies that come to market and attract attention, while many others are likely to stay on the sidelines in today’s market.
Record-high invested capital: The total invested amount reached an all-time high, surpassing all previous years in the 2014–2024 period.
Evenly distributed number of deals throughout 2024: The number of deals increased in the first half of the year and remained quite stable in the second half of the year.
Large single transactions
Investments that stand out in terms of size include:
| Company | Company description | Country | Investor(s) |
|---|---|---|---|
| Develops immunoassays for life science research. | Sweden | EQT Partners | |
| Online classifieds group for sustainable commerce with more than 25 digital marketplaces. | Norway | Permira Advisors, Blackstone, TCV, and General Atlantic | |
| Helps enterprises and organisations to protect their businesses against fire and accidents. | Sweden | Adelis Equity | |
| Quality provider of fish health products and services. | Norway | Summa Equity | |
| Focuses on the commercialization of medicines for rare diseases and specialty care. | Sweden | KKR and Impilo | |
| Establishes connections between buyers and sellers of products and services in the construction and building market. | Sweden | Stirling Square Capital Partners, TA Associates, and Macquarie Capital | |
| Develop and manufacture coating solutions for the protective, decorative, marine, container, industrial and yacht segment. | Denmark | CVC Capital Partners | |
| Ensures the functionality of critical infrastructure. | Norway | Norvestor Equity | |
| Provides financial and accounting services with a focus on digital solutions. | Finland | KKR | |
| Develops and produces krill-based ingredients for health and nutrition. | Norway | American Industrial Partners Capital | |
| Offers digital property management solutions for real estate companies. | Sweden | CVC Capital Partners | |
| Develops and sells renewable energy projects, including wind and solar power. | Sweden | EQT Partners | |
| Designs and manufactures sustainable heating and cooling solutions for buildings. | Finland | Apollo Global Management | |
| Produces and markets functional beverages and health supplements. | Sweden | Cinven | |
| Provides digital solutions for energy, infrastructure, and sustainability management. | Norway | Generation Investment Management and Advent International |
Most active fund managers in 2024
| Fund manager | HQ | # of deals | Companies |
|---|---|---|---|
CapMan Capital Management | Finland | 5 | Edita Prima, Haminan Kaukolämpö, Innofactor ProPellet, TerraWise |
| Capidea | Denmark | 5 | Digital Group, Fire Eater, Gavefabrikken, Intermail, HVACON Marine Systems |
| Polaris Private Equity Partners | Denmark | 4 | 7N, Awardit, Vinnergi, Salfarm Danmark |
| Impilo | Sweden | 4 | Avia Pharma, Stille, Immedica Pharma, Qufora |
| Accent Equity Partners | Sweden | 4 | Brimer, Helmacab, Plockmatic, Unisport-Saltex |
| Main Capital Partners | The Netherlands | 3 | Millum, Nextway Software, Omnidocs |
| Adelis Equity | Sweden | 3 | Bruhn NewTech, Hantverksdata, Presto, |
| Axcel Management | Denmark | 3 | Accru Partners, Nordic Tyre Group, Utilitas |
| Driv Kapital | Norway | 3 | Lime Green, Olivia, SOCO |
| JRS Capital | Sweden | 3 | Cookin Food, Inquire, Northlab Photonics |
| CVC Capital Partners | UK | 3 | Hempel Group, Odevo, Resurs Group |
| Via Equity | Denmark | 3 | Crediflow, InterForm, Mansoft |
ICT sector is dominating
The ICT sector accounted for the largest share of buyout deals, with 48 transactions, representing 36 percent of all deals. The volume of deals involving ICT companies rose significantly in 2024, marking a sharp increase from 2023. Activity is now approaching the levels seen during the record year of 2021 and remains well above the ten-year average.
The industrials sector saw 33 investments, a 25 percent decrease from last year. The consumer sector attracted 17 investments, one investment less than in 2023. Both sectors have seen three consecutive years of decline.
Cleantech investments increased from 5 to 7, which is high compared to historical levels. Health care & life sciences deals rose significantly from 3 to 12, and is now well above long-term trends. Infrastructure investments jumped from 1 to 4, showing sharp growth. The financial sector remained stable but has steadily grown over the past decade.
Overall, the ICT and industrial sectors continued to be key drivers of large-cap activity, accounting for around half of all deals. Meanwhile, cleantech and health care & life sciences experienced higher-than-usual activity, and financials and consumer each saw a single large-cap deal.
While ICT remains dominant, the consumer and industrial sectors continue to decline. Investments in traditional energy sources have decreased over the last decade, however this shift is largely absorbed by increased investment activity in the cleantech and infrastructure sectors. Financials remain stable, while health care and life sciences are recovering but still below historical averages.
Uncertainty and megatrends shape sector trends
Fredrik Korterud, Partner at Norvestor, attributes sectoral trends to uncertainty and underlying megatrends.
– Overall, it likely revolves around uncertainty, leading investors to gravitate towards safer sectors, particularly those with strong underlying drivers such as technology, which remains constant across economic cycles and trends.
– There are significant megatrends and underlying drivers in this sector, regardless of the economic situation. Hence, many interesting opportunities can be found within this area, he says.
The experienced Partner at Norvestor, continues to explain the downward trend in the industrial and consumer sectors:
–The industrial sector can quickly be affected by economic fluctuations. The same applies to the consumer sector; when people face high interest rates and electricity prices, it's common to reduce their spending.
– Norvestor has been cautious with investments in the consumer and retail sectors. This has proven to be advantageous given the developments in these areas over recent years, he adds.
Norway exhibits increased activity, although Sweden still leads number of deals
In 2024, the Nordic countries experienced varying trends in investment activity. Norway and Denmark both saw strong growth, with investments rising by 43 and 40 percent, respectively. Finland also recorded a solid increase of 29 percent. In contrast, Sweden was the only country to see a decline, with investment levels falling by 10 percent compared to 2023.
- Sweden: Swedish companies received the highest number of investments among the four countries, representing 34 percent of all buyout deals. However, the total number of investments was lower compared to 2023.
- Norway: Norwegian companies secured 33 investments, representing 25 percent of all buyout deals. This is a 43 percent increase from 2023, and activity is now above historical levels.
- Denmark: In 2024, Danish companies represented 21 percent of the Nordic buyout deals, four percentage points higher than their share from the previous year. The number of deals increased by 40 percent compared to 2023, but activity remains below the average for the past five years.
- Finland: Finnish companies secured 27 investments in 2024, a 29 percent increase compared to 2023, indicating a strong increase in deal activity.
International investor participation in the Nordics grew to new heights
In 2024, non-Nordic fund managers continued to increase their presence in the Nordic buyout market, further expanding their share of total investments. The share of international investors grew in all Nordic countries. This is the second consecutive year of growth for international investors, establishing a stronger foothold in the market. The growth in 2024 drives non-Nordic investor participation to new heights, surpassing the record set in 2020.
More international investors: The share of investments from non-Nordic investors increased for the second year in a row. The share of investments from international investors increased from 31 percent to 36 percent in 2024.
The increase in activity was mainly attributed to funds based in the UK and the US, which made 24 and 15 investments, respectively. Although Swedish investors continued to be the most active with the highest number of transactions, their relative prominence has decreased as international involvement expands.