Nordic PE exits hit new low in Q2

Unquote recorded just 18 sales of PE-backed companies across the Nordic region in the second quarter, marking a low not seen even during the global financial crisis.

While the number of realisations recorded every second quarter has been on a steady downward trend over the past three years, the sharp drop of 55% in exit volume in Q2 2020 compared with Q2 2019 is unprecedented. Compared with Q1 2020, which recorded an already low 27 exits, the decrease is still more than 33%.

The slowdown in exit activity in the Nordic countries is in line with some other European regions, including southern Europe, where exit volume fell by 65% year-on-year, and France, which recorded a 60% decline.

The subdued activity reflects the reluctance shown by GPs during the peak of the pandemic to initiate sale processes, prioritising the needs of existing companies in their portfolios and fearing a hit on exit multiples, driven by uncertainty over the prospects of portfolio companies and a lack of appetite on the buy-side.

The slowdown in exits arrices parallel with a reduced number of buyouts, with dealflow declining by 65% year-on-year in Q2, according to Unquote Data. Consequently, secondary buyouts were few and far between as an exit type in Q2, going from 25% of all exits in Q2 2019 to 5.5% in Q2 2020. Trade sales, on the other hand, showed resilience, comprising 55% of all exits, versus 44% in Q2 2019.

The second quarter saw just one receivership deal, which involved Silverfleet Capital exiting Masai Clothing Company, whose 23 Norwegian and Swedish stores filed for bankruptcy. The lower-than-expected number is in keeping with views of some in the PE industry who have previously told Unquote that subsidies from the government have propped up companies for now and that more deals will come to market during the summer and beginning of autumn.

On the upside, exit activity is already showing some signs of improvement, with 12 divestments announced between July and mid-August, despite July being the prime time for holidays in the region. Based on Unquote Data, however, there will need to be at least 22 more exits in Q3 2020 for activity to look comparable to the same period last year.

Notable Q2 2020 exits

Company	Backers	Advanced sector	Exit route	Exit date	Country
Boozt	Verdane Capital Partners	Internet	Other	May 2020	Sweden
Masai Clothing Company	Silverfleet Capital	Clothing & accessories	Receivership	May 2020	Denmark
Scanbur	Erhvervsinvest Management	Medical equipment	Other	Jun 2020	Denmark
Mapillary	Playfair Capital, Sequoia Capital, Atomico Ventures, Samsung Venture Investment Corporation, BMW i Ventures	Software	Trade sale	Jun 2020	Sweden
Kaiku Health	Debiopharm, Reaktor Ventures, Tesi	Software	Trade sale	May 2020	Finland
Hector Rail	EQT	Railroads	Trade sale	Jun 2020	Sweden
Wexus Gruppen	Norvestor	Building materials & fixtures	Trade sale	Jun 2020	Norway
Scrive	Inbox Capital	Software	Secondary purchase	Jun 2020	Sweden
Kotikatu	Vaaka Partners	Business support services	Trade sale	Jun 2020	Finland
Napp	Promentum Equity Partners	Software	Trade sale	May 2020	Denmark
Canorama	Folmer Management	Computer services	Trade sale	Jun 2020	Finland
Evondos	Serendipity Partners	Medical equipment	Secondary buyout	May 2020	Finland
One Nordic	Altor Equity Partners	Business support services	Trade sale	May 2020	Sweden

Source: Unquote Data

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Data Snapshot
• Exits
• Nordics
• Unquote Data