Report: Nordic private equity is warming up

Nordic unquote"
23 June 2010

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While buyout markets in the rest of Europe are only showing modest signs of stirring, activity levels in Europeтs most northerly region are picking up nicely, indicating that the two-year winter for local buyout investors may be giving way to spring.

The unquote" Nordic Report 2010 takes an in-depth look at this and other developments in the Nordic private equity and venture capital markets.

Europe's northernmost countries were not as badly hit as others when the US sub-prime crisis hit in later 2007, as the region's banks had relatively little exposure to these toxic assets. However, it did not escape unscathed, as the collapse of Lehman Brothers led to a global liquidity crisis and recession, which affected even the most prudent countries.

Buyouts in the region suffered, with deal numbers falling from 70 in 2007 to just 33 in 2008, while deal value plummeted from €18.5bn to just €6.1bn over the same period. However, with an uptick in activity in late 2009, continuing into this year, the market appears to be making a rapid recovery.

On the venture and growth capital side, cleantech has taken off in the Nordic region. The area benefits from geographic advantages, that make it a prime target for the development of hydro and wind-powered electricity generation.

But, the region has seen investment in companies that do not directly operate infrastructure. Firms such as ChapDrive, which was spun out of the Norwegian University of Science and Technology, develop the technology and services needed to keep wind turbines going, and make them even more efficient.

Lastly, Rikke Eckhoff talks to four of the region's most influential players about fundraising, investment and the future of Nordic private equity.

The unquote" Nordic Report 2010 is free to all unquote.com subscribers and can be downloaded [asset_library_tag 1424,HERE]!