Great Danes flourishing as Nordic exit levels rise

"The exit uptick is down to three main reasons: the financial crisis is fading; new 2013 funds need to show a track record of good exit results; and the fact that trade buyers are back in the market," says Norwegian-based asset manager Argentum's CEO Joachim Høegh-Krohn. Statistics show industrial buyers were involved in 37.2% of all exits so far this year.

Two quarters last year recorded more than 20 exits: 27 in Q2, while Q4 piled up 29. This was something the region had not previously experienced and is an indication of the activity level for the quarters to come.

With 43 exits recorded in H1, 2013 is already ahead of last year's first half, while still trailing behind H1 2011. At 51 exits during the first six months, that year was the best performing of the past five years, according to unquote" data. Through August, the Nordics has seen 58 exits in 2013, while the figure for 2012 stood at 83 exits for the entire year. At the current rate, the overall exit level for this year will probably match, if not exceed, last year's total.

Q3 exit figures mark an improvement on last year, with Denmark shining brightest

"The activity level in the region during the past six months has been strong compared to the past three years," says Johnny Hewett, CEO at Smedvig Capital, which invests in the Nordics and UK. "There are definitely signs that the market is picking up, although not aggressively. And although it is still too early to say, I am cautiously optimistic both in terms of deal activity and fundraising."

Not only has the volume of exit activity increased lately, but also the value of the deals themselves. At the beginning of September, Bridgepoint sold Finland's largest healthcare provider, Helsinki-based Terveystalo, to EQT for a reported €650m. Founded in 2001, Terveystalo operates a network of hospitals and clinics in Finland, with a turnover of €455m in 2012 and employing close to 6,300 people. Private equity firm Bridgepoint had acquired the business in February 2009 for €162m and invested a further €160m in the group's network, IT infrastructure and services. EQT has previously owned healthcare company Aleris, which it sold to Investor in the summer of 2010.

Bring home the bacon
This year's second quarter saw three large-cap exits valued in excess of €250m, all of them Denmark-based: Unifeeder, Euro Cater and Fan Milk International. The largest of the three, ICG's secondary buyout of Euro Cater from Altor Equity Partners and inco Amba for a reported enterprise value of €604m, took place in late April.

Earlier the same month, Nordic Capital bought Danish logistics company Unifeeder from Montagu Private Equity for €336m. Montagu bought the company in 2007 and reaped 2x money on its investment.

At the end of June, the Dubai-based investor firm Abraaj Group, founded in 2002 by Pakistani businessman Arif Naqvi, acquired Fan Milk International from the Emborg family, Maj Invest and its management. The deal, which was valued a bit lower than the reported enterprise value of €503m, is expected to be completed before the end of November.

These deals reflect the growing importance of Denmark. Close to €2bn of capital has been invested in Danish companies so far during the first half of 2013 - 42% of the region's total value of €4.8bn.

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• Topics
• Nordics
• Exits
• Argentum
• Smedvig Capital
• Bridgepoint
• EQT
• Nordic Capital
• Montagu Private Equity
• Abraaj Capital
• Altor
• Denmark
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