Nordic Report 2014

Against a backdrop of a two-year slowdown in deal volume, the unquote" Nordic Report 2014 reviews the region's private equity industry.

For many practitioners, the drop-off has been a symptom of the continued efforts of the Swedish tax authority to retroactively apply income tax to carried interest. According to many GPs, the court cases have drained the industry, particularly in 2012, on both an advisory and individual level. Indeed, a huge amount of time and effort has been spent on managing this potential threat.

Fortunately, the unusually clear verdict reached with the Nordic Capital case in late December has removed most of the doubt around this issue. This will hopefully translate into stronger dealflow over 2014. The figures are already backing this up with 76 deals recorded by unquote" data so far this year across the Nordic region, giving good reason to expect a strong performance over the coming months.

Special unquote" Nordic report reviews the region's industry

But while positivity and confidence is increasing, as Sweden gears up for elections this year, the industry's involvement in the welfare market has become an increasingly important point of discussion. While the Nordic private equity market has long been open and transparent with its investors, it is now crucial that the industry applies the same level of communication with the wider public. The SVCA's upcoming code of conduct will do an enormous amount to tackle this issue and will undoubtedly be keenly watched by the rest of Europe.

Political headwinds aside, when speaking to practitioners, the real challenge today is accessing growth – and this is an issue felt by all of Europe. However, with its open yet small domestic markets, Nordic companies, which have always had a strong focus on export, must work even harder and be more innovative in finding that all important growth.

Fortunately, recent developments in the region, such as the opening up of the corporate bond market and the reopening of the IPO window, are creating new sources of capital and adding a fresh layer of flexibility.

The latest unquote" Nordic Report explores LP and practitioners' views on the market through a series of Q&As with prominent firms operating the region, including Scottish Widows Investment Partners, Investec Fund Finance, SEB and new entrant QLC Partners. It also offers statistical commentary on recent Nordic private equity activity by sectors, vendors and deal types, powered by unquote" data.

Click here to access the full report.

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• Topics
• Nordics
• Sweden
• tax
• IPO
• Nordic Capital