Verdane Capital Fund VII has held a first close at SEK 650 million. Argentum has committed NOK 178 million to the newly established fund. Argentum and Argentum’s investment partners have together committed NOK 207 million, which represents 38 % of the total amount committed.
The capital was raised mainly from existing investors, with Argentum and Argentum’s investment partners Gjensidige and the Varner Group backing 38% of the fund. Other investors include; Finnish Industry Investment, KLP, LGT, Natixis, Sundt and Folksam. Argentum’s investment partners represent the only new investors.
Verdane Capital intends to reach a second close during the course of 2009. Target capital is set at SEK 1 billion.
The new fund will invest in small and medium-sized businesses both directly and through the secondary market. The secondary market involves buying other investors’ portfolios, so-called secondary direct. The Fund’s strategy will be to focus on long-term investments, and to create value through active ownership.
- This is the time to pick the best companies, and Verdane has a unique position and unique experience in buying and revitalizing private equity portfolios within the technology sector in the Nordic region. We believe this market will increase in light of the financial crisis, says Joachim Høegh-Krohn, Argentum’s CEO.
He also highlights that counter-cyclical investments in private equity has proved to be profitable. – Many private equity funds and investors are struggling to realize their investments, and there is therefore a growing market for agents like Verdane, says Høegh-Krohn.
- We are seeing that a number of Norwegian and Nordic companies are well positioned within a number of markets including Clean Tech, Biotechnology, and High Tech and Industry. However, they are in need of active owners that can provide long-term capital and industrial competence, says Høegh-Krohn.
Verdane has experience in the secondary direct market and has successfully purchased portfolios belonging to Saab, SND Invest, Skandia, Trøndelag Vekst and SINTEF.
- Verdane’s purchase of SINTEF’s private equity portfolio, consisting of technology companies, released capital which could be employed by new projects. These companies will now benefit from professional managers who can help them develop and grow further, says Anders Lian, CEO of SINTEF’s venture company SINVENT.
Verdane Capital Advisors have also helped build successful companies such as Aquagen, Chipcon, Nacre, Odim, Opera Software, Reslab og Reslink.
- Active ownership has been crucial in our success with Nacre. In addition to having high risk capital made available to us, we have also benefitted substantially from our owners’ competence and extensive networks, says former CEO of Nacre, Eivind Bergsmyr.
About Verdane Capital
(
www.verdanecapital.com)
Verdane Capital is a leading investor in small and medium-sized companies in the Nordic private equity market. Verdane Capital is also the only Nordic company that has developed special competence within the purchase and further development of private equity portfolios. Verdane Capital funds’ have over the past 6 years bought a total of 11 portfolios, and own shares of almost 200 private equity companies.
Verdane Capital Advisory has 25 employees divided between Oslo and Stockholm. The new fund bring total capital under management to SEK 4,5 billion (approximately NOK 3,6 billion)
About Argentum
(
www.argentum.no)
Argentum is a specialized investment company within Nordic private equity, and is 100 % owned by the Norwegian state. Argentum has offices in Bergen, Oslo and Stockholm. Argentum`s equity capital is NOK 5, 2 billion and the company has invested in 33 private equity funds.
Argentum has delivered an 18 % annual return since its inception, and established the Nordic Private Equity Programme (NPEP) with the partners Gjensidige, Conoco-Phillips Pensjonskasse Norge and the Varner Group in 2008. NPEP intends to commit NOK 1, 5 billion per year to private equity funds with a Nordic focus.
For information, please contact:
Joachim Høegh-Krohn, CEO, Argentum, tel: 93407109;
Email:
jhk@argentum.noMaria Borch Helsengreen, Director of Business Development, Argentum, tel: 957 42 213
Email:
mbh@argentum.no