Investment Horizon – a long-term perspective

Nordic Capital's investment strategy is based on unique deal access, proven micro-focused investment themes and distinct expertise in delivering operational improvement.

Investing for the long term drives outperformance
A long-term approach is essential to the ability to build enduring companies through all business cycles. Nordic Capital's valuation methodology does not always capture operational long-term investments early in the investment period. In some cases, these may only be visible after a period of up to five years. This methodology requires Nordic Capital to be a patient, long-term owner - one that needs to support sustainable value creation in the portfolio companies to enable future development and exit.

Longterm -commit

Holding periods
The typical ownership period for a Nordic Capital portfolio company is 3-7 years, the average holding period has been 4.6 years.

Long-term perspective attracts industrial buyers
The most common exit route for Nordic Capital is a trade sale to an industrial buyer. Another common exit route is sale to a financial sponsor ("secondary buyout").  Other exit routes include IPOs (Initial Public Offerings), where the company is listed on the stock exchange and Nordic Capital stays on as a majority shareholder for a period following the listing. By building sustainable companies with strategically attractive market positions, Nordic Capital's portfolio companies attract more industrial buyers than other European private equity funds.

Exit characteristics Funds I-VII as per Dec 31, 2012

Route

Holding Period