Investment operation

Clear investment criteria

The investment process is designed to evaluate existing investments against set target values and to provide a continuous and current picture of new investments that meet the set investment criteria. The aim is to be able to act quickly when investment opportunities arise.

Clear investment criteria Investments are made in companies with proven business models and considerable opportunities for future growth in value.

• Investments in mid-sized and large cap listed Nordic companies.
• Focus on business models that can be applied in several markets.
• Good ability to generate growth in cash flow.
• Major potential for value appreciation through active ownership.
• Ownership stakes that enable significant influence.

Analysis

Industrivärden has a lean organization that is distinguished by high flexibility and short decision-making channels. The Company has 20 employees, eight board members and an extensive contact network with specialist know-how. Operations are project-oriented and involve personnel from both the investment organization and staff functions.

Each portfolio company and potential new investment candidate is monitored by an investment team. The investment team performs a company analysis that culminates in a so-called fundamental analysis. Based on this analysis, the team continuously updates an action plan, which serves as a platform for the design, implementation and evaluation of Industrivärden’s active ownership. The aim is primarily to identify and describe various opportunities for value growth as well as strategic measures for achieving this value.

All analysis is based on external information material. Each investment team presents its action plan on a continuous basis to the director or directors with ties to Industrivärden serving on the board of the portfolio company. In this way, Industrivärden’s representatives are provided with a current picture of identified opportunities and measures. By working with sound, well-researched ideas, Industrivärden can exert influence on the respective portfolio companies’ boards. In this way, over time parts of the action plans can be put to concrete work in the portfolio company for future value creation.

Executive Management and Investment Committee

The CEO is responsible for Industrivärden’s day-to-day administration, which is handled by the Company’s Executive Management. This work involves strategic, organizational and financing matters as well as controls and follow-up, among other things. Industrivärden’s Executive Management also serves as the Investment Committee, which adopts action plans and makes investment decisions within set mandates. Representatives of the Executive Management participate on the investment teams as investment heads. 

Exit evaluation

Exit evaluation aims to optimize the realization of built-up value. It is important at an early stage to evaluate value growth targets and the forms of a conceivable future exit in step with the practice of active ownership. The action plan prepared during the new-investment process includes goals and options for a future exit, among other things. Through close interaction between the three main processes, plans and ways of working can be quickly adapted to new knowledge or changed conditions in the external business environment.