Argentum delivered also in 2009 returns comparable with that of top quartile European private equity funds. Argentum had a profit of NOK 290 million, compared to a deficit of NOK 415 million in 2008. Argentum's annual return on invested capital has been 16 percent since inception in 2002 - well ahead of our benchmark.
An important reason for Argentum's success in the financial market last year is Argentum's counter-cyclical investments in 2009. While many investors pulled out of the market in fear of a prolonged financial crisis, Argentum made several large investments. Argentum invested more than NOK 1 billion in 2009 and has through our investments indirectly invested in more than one hundred new portfolio companies during the year.
The financial crisis had a significant effect on the supply of venture capital to Nordic growth companies. While Nordic private equity funds rose around NOK 20 billion in 2008, this amount was reduced to only NOK 8 billion in 2009. This amount includes NOK 2 billion that were raised by Nordic venture capital funds which were all based in Norway with Argentum and partners as key investors.
- We believed that 2009 would be a favorable investment year, and according to recent research, venture funds as well as private equity funds raised under difficult economic conditions have proven to be among the top vintages, says Argentum CEO Joachim Høegh-Krohn.
2009 also marked the establishment of Argentum Secondary, Argentum’s instrument in the Secondary market. Argentum has gained a profitable position and contributed in bringing liquidity to this market.
- Our partners, including Gjensidige Forsikring, have chosen to co-operate with us in the secondary market with favorable results. Our activity has also resulted in greater liquidity in the Nordic market, which is a prerequisite for attracting new investors, adds Høegh-Krohn.
At year end 2009, Argentum’s capital under management is approximately NOK 6.5 billion. Argentum has a portfolio of 46 funds, and the net asset value of the portfolio is NOK 3 027 million compared to NOK 1 962 million at the start of 2008.
The funds in the Argentum portfolio realized investments with a gain of NOK 94 million. Some of the successful exits include the sale of Intelecom to Opplysningen 1881, as well as share sales in Clavis Pharma and Noreco by Neomed and Hitecvision.
About Argentum:
Argentum is an asset manager specializing in Nordic private equity funds. We are active in both the primary and secondary market and emphasize close co-operation with Nordic and international investors, as well as with Nordic private equity managers.
Argentum manages the Nordic Private Equity Programme, Argentum Investment Partners and Argentum Secondary on behalf of our partners, which include Gjensidige Forsikring ASA, Varner Private Equity AS, Grieg International AS and Institusjonen Fritt Ord.
Argentum is funded by the Norwegian Government.
Argentum currently has NOK 6.5 billion (approximately EUR 0.8 billion) under management, a staff of 16 and is located in Bergen, Oslo and Stockholm.
For more information please contact:
Maria Borch Helsengreen
Director of Business Development,
Tel: +47 957 42 213
E-mail: mbh@argentum.no
Or:
Joachim Høegh-Krohn
CEO
Tel: +47 934 07 109
Email: jhk@argentum.no