Portfolio Company Governance

Portfolio company governance is an essential part of Nordic Capital's value creation model.

When a portfolio company is acquired, Nordic Capital appoints a Board of Directors. The members of the Board are carefully selected in order to achieve the best possible combination of knowledge and experience for the development of that particular company.

The Board of Directors is responsible for defining and implementing strategies as well as ensuring that management receives support and are held accountable for operationalizing those strategies in an efficient and responsible way.

The Board of Directors appoints the CEO. Each company's CEO and management team are responsible for executing strategy and conducting the daily operations of the company in accordance with the directions established by the Board.

Nordic Capital manages portfolio company developments including Environmental, Social and Governance (ESG) dimensions through a combination of committed board participation as well as central and ongoing monitoring of the progress of the company. It is the responsibility of the portfolio company Board of Directors to ensure that ESG matters are appropriately considered for the particular company and to ensure that their agreed strategies and policies are applied throughout their daily business operations.

Alignment of interests between the owners, the Board of Directors and management is a prerequisite for well-functioning governance and successful business development. A conducive incentive structure is achieved by encouraging the Board and management to invest into the company alongside the Nordic Capital fund.