Some people would argue that there is lack of capital available in the early in the value chain of new start-up companies in Norway. Based on our mandate it could be argued that this segment should be our core investment space.

However, as Argentum is seeking to maximize its return and historically the venture segment in the Nordic region has not provided satisfactory returns to the investors. Even though the venture segment in the region has not performed very well in general, Argentum has committed a relative high share of its capital to this sector (compared to the share venture fundraising represents of total Nordic fundraising), i.e. Northzone, Viking Ventures, Verdane Capital, Energy Ventures, Teknoinvest, Creandum etc. This can be explained by our belief in the market opportunities for the best VC fund managers in the coming years.

Compared with a European benchmark the Nordic buyout segment has a higher performance, and has served as a crucial component in the increased overall fundraising in the Nordic region. As the return from the buyout segment has been higher than comparable venture performance (that has higher risk, leading to a much more efficient risk/return proportion), the investors have consequently increased their allocation to buyout. Argentum also believe in the importance of re-structuring and re-vitalization of mature businesses. Private Equity / buyout investors are capable of developing such companies, better than many other investors, increasing the value creation for both investors and the state’s economy as a whole.