Spotlight on Digitalisation

Strategic partnership to drive digital innovation

As part of the digitalisation initiative, Nordic Capital has formed a strategic partnership with SingularityU Nordic, the Scandinavian collaborative venture of Silicon Valley-based Singularity University,  The purpose of this partnership is to drive digital innovation, providing Nordic Capital and its portfolio companies with privileged access to education, knowledge, people, expertise and inspiration that supports and accelerates the integration of technologies into the value creation agendas.

Singularity University is a global learning and innovation enterprise with an aim to apply exponential technologies to solve the world’s greatest challenges. Since its establishment in Silicon Valley in 2008, Singularity University has educated and inspired many entrepreneurs and senior executives on the acceleration of technological advancements, as well as the implications for business and society in general. Located in Copenhagen Science City, SingularityU Denmark is the University’s largest collaboration outside Silicon Valley, providing a platform to support digitalisation, innovation and entrepreneurship in the Nordics.

As a result of this partnership, Nordic Capital has been able to provide its advisory teams and portfolio companies with access to a stimulating educational and networking programme including:

  •  Executive and Talent programmes at Singularity University
  •  Summits and Conferences with a focus on Digitalisation
  •  Customised programmes focused on specific technologies and industry verticals

Digitalisation at work in the Nordic Capital portfolio

Not every company will aim to be the next Google but digitalisation is relevant for all businesses as they seek to use technology advancements and “big data” to increase revenue, enhance customer relationships, drive cost improvement and transform business processes. As such, digitalisation is prioritised by Nordic Capital during the investment process and throughout the ownership period.

Nordic Capital’s portfolio companies have a wide range of digital initiatives underway. While some are already digital transformers, others are demonstrating how digitalisation can support the development of more traditional businesses.

From the investment outset, a digital element is integrated into Nordic Capital’s due diligence process, looking at customer/consumer online purchasing behaviour; website performance; social media presence; analysis of new or potential entrants and digital developments in related industries; and the future business model and value chain sustainability (e.g. risk of disruption).

This focus and continued commitment to digital advancement as a means to improve profitability and enhance growth, continues into the ownership period and is considered a key element of the board agenda. This is facilitated by using a range of management tools that include regular digital audits, disruption assessments and innovation pilots; as well as providing portfolio companies with training and access to other CIOs and an extensive network of digital advisers.

At the point of exit, digital due diligence is again applied to pre-empt prospective buyers and form a clear view on digital opportunities.  A digital vision for the company’s future is an important element of the equity story.