APRIL 17 2026
Recently named Europe's capital of capital by The Economist, Stockholm has built one of the continent's most distinctive capital market ecosystems, with a deep pension base, broad retail participation, an active private markets industry and a public market that continues to play an outsized role in scaling businesses. But this position is not a given.
In this edition of Voices of Nordic Capital, Elin Ljung shares her perspective on what makes Stockholm's capital market distinctive and what is needed to keep it competitive.
Stockholm has been described as Europe's new "capital of capital". Do you think that label is justified?
"I think it is, but what makes it meaningful is not the amount of capital alone, it is how well the ecosystem functions. Sweden has built something rare, a market where entrepreneurial ambition, institutional capital, private equity and public markets reinforce each other across the full growth journey.
What sets Sweden apart is a very strong institutional base combined with unusually broad retail participation. The Swedish pension system represents around EUR 800 billion, roughly 20 percent of the EU's total accumulated pension assets.[1] But unlike most of Europe, where households largely save in bank accounts, every other Swedish household owns equities, funds or investment savings accounts. That democratisation of investments gives the system a resilience and long-term orientation that is hard to replicate."
What does the data tell us about the real contribution of private capital to the Swedish economy?
"Private capital has become a defining feature of the Swedish economy. Over SEK 650 billion has been invested in Swedish businesses since 2007. Today, more than 320,000 people work across 1,240 private equity-backed companies. These firms grow employment at six percent per year, compared to 1.3 percent for the broader economy. The international confidence in Sweden is equally striking. Two thirds of all capital invested in Swedish private equity comes from outside Europe, with 40 percent going directly into Swedish companies. According to SVCA, if that investment were to fall to the European average, the economic loss would be equivalent to around SEK 100 billion.[2]"
What is needed to protect and strengthen this position going forward?
“This ecosystem was not the result of any single political decision. It emerged from decades of stable conditions, far-sighted reforms and a consistent policy environment where businesses could grow and capital could work. A number of important tax reforms enabling dynamic capital flows were pivotal in shaping the market we have today.
What we need to recognise is that a capital market is a delicate ecosystem. It takes a long time to build and that virtuous cycle depends on confidence and predictability. Sweden’s position today is something to be proud of, but sustaining it requires continued awareness of what made it possible."
How is private capital shaping Sweden’s transition toward a more sustainable economy?
“Sweden has long combined economic ambition with a strong sense of responsibility toward nature, social welfare and equality. Private capital plays a meaningful role in that. The EU's energy and climate targets alone will require an additional SEK 2,000 billion in annual investment by 2030. Private capital, with its long-term orientation and active ownership model, is well placed to help close that gap. The Swedish industry has increasingly directed investment toward companies with positive contributions to society and that shift is gathering pace.”