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.
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 – influencing the portfolio companies’ overall development. A decisive success factor is that Industrivärden’s analysis leads to feasible 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.
Board of Directors
Apart from its customary duties, the Board of Directors makes decisions on major investments, continuously monitors the portfolio companies’ performance and decides on matters related to the exercise of active ownership in the portfolio companies. Individual directors represent Industrivärden on portfolio companies’ boards and participate actively in their board nomination processes.
Investment and analysis organization
The investment and analysis organization performs investment analyses, continuously reviews Industrivärden’s fundamental analysis of existing and potentially alternative investments, and regularly updates the Company’s action plans in support of its active ownership.
Operations are organized into teams, which monitor and evaluate developments in the portfolio companies. Each investment team is led by a team manager. The teams continuously perform investment and company analyses that culminate in a so-called fundamental analysis. In this way the investment and analysis organization builds up deep, fact-based knowledge about the respective portfolio companies and their operating environments. Important external factors include market conditions, competitors, customers and megatrends.
Based on this fundamental analysis, an action plan is continuously updated and forms the foundation for the design and execution of Industrivärden’s active ownership. The aim is primarily to identify and describe various opportunities for value growth as well as strategic measures for creating this value. The fundamental analysis is a key component in the overall assessment that forms the basis of Industrivärden’s day-to-day investment decisions. All action plans are set by Industrivärden’s investment committee, and the respective, adopted action plans are presented to Industrivärden’s board. In this way the board members are provided with a current and in-depth picture of identified opportunities and measures. When necessary, Industrivärden communicates its views first with the chairman of the respective portfolio company’s board. An open dialog is also held with the respective company’s CEO and other senior executives.