Industrivärden creates shareholder value through long-term asset management based on active ownership. The chosen management strategy – active ownership – requires significant positions of influence and entails a long-term involvement.
Asset management is conducted in two main processes – investment and active ownership. The investment process aim to maximize Industrivärden’s long-term return and is based on internal analysis, external documentation, and business intelligence. Based on this analysis, decisions are made on a regular basis on margin transactions in existing investments, divestments of an entire holding, or new investments. The estimated return potential for existing investments is to be
compared with the return potential for new investments under evaluation, taking into account continuity and a long-term view.
A significant part of the work is focused on valuecreating active ownership in existing investments – the so-called portfolio companies. Active ownership aims to gain depth of knowledge about the companies and their business environments, and where necessary to influence their strategic development.
The active ownership process is conducted mainly through involvement in nomination processes for board elections, through board representation, evaluations of boards, CEOs and company managements, and by monitoring and – where necessary – efforts to influence the portfolio companies’ overall development. A decisive success factor is that Industrivärden’s analysis leads to implementable changes and/or value-creating transactions. The two main processes are tightly interwoven.
Asset management is based on Industrivärden’s relative strengths, which include a long-term investment perspective, depth of knowledge and experience in active ownership, a strong position of influence, financial strength and an extensive network.