Stockholm (NordSIP) – Nordic Capital, the private equity investor with approximately €10bn in AUM focused on building stronger sustainable companies covering the Nordic region, selected Northern European sectors and the global healthcare market, has acquired almost 10% of the listed shares in the Stockholm-headed bank Nordax Group AB via its Capital Fund VIII.
Nordax, which is listed on Nasdaq Stockholm since 2015, is a specialist consumer lender focused on large, long-term personal loans and deposit accounts, counting some 120,000 loan customers and 28,000 savings customers among its clients, and has a current market capitalisation of approximately SEK5bn (€520mn).
Nordic Capital Fund VIII has also entered into a call option agreement, entitling it to acquire an additional 5.04% of Nordax shares, subject to approval by the Swedish Financial Supervisory Authority.
“Nordic Capital has a great sector expertise and track record within financial services. By capitalising on this expertise, Nordic Capital has discovered and realised another investment opportunity in Nordax and sees further potential ahead,” Elin Ljung, Director of Communication and Sustainability at NC Advisory AB, the advisory firm for the Nordic Capital funds, told NordSIP in an exclusive comment.
“For many people, access to reliable consumer finance is important and we believe this sector fills an important role in society, although it has been sometimes criticised for untransparency,” Ms Ljung said. “Nordic Capital sees Nordax as a company working in a responsible way and makes sure that people can repay their loans. As committed owners, Nordic Capital will continue to drive the sustainability agenda by acting responsibly, educating the market and being transparent, as we do in other portfolio companies within financial services.”
The transaction was executed by way of a reversed book building process, where a total of 15% of capital was acquired by Nordic Capital (9.96%) together with Carnegie Investment Bank AB (5.04%). The call option arrangement with Carnegie gives Nordic Capital the right to acquire all of the shares currently held by Carnegie, which Nordic Capital will exercise upon receipt of the necessary approvals from the Swedish Financial Supervisory Authority.
“Nordic Capital sees Nordax as an interesting company with strong potential and a great management team,” commented Kristoffer Melinder, Managing Partner at NC Advisory AB and advisor to Nordic Capital’s funds in a press release. “There is rapid underlying growth in this market niche and opportunity for companies like Nordax to take new steps in digitalization and product development. Nordic Capital has strong expertise in these areas and looks forward to becoming a committed shareholder in Nordax.”
With its strong track record from investments in the financial services sector, including from Resurs Bank, Lindorff and Nordnet, Nordic Capital takes as its mission to identify, invest in and build stronger businesses by supporting the development of sustainability within them typically through active ownership, enabling it in turn to consistently deliver good financial returns to investors across economic cycles. It creates value by applying a high level of selectivity, developing a profound understanding of its target sectors, employing strong operational capabilities, proactively supporting its portfolio businesses to implement sustainability and avoiding reliance on external factors or the global economy.
Sustainability, including a clear understanding of environmental and social impacts, is fully integrated into all phases of the investment and ownership process, from evaluation through to exit. The company’s investment professionals are trained to address sustainability risks and opportunities, enjoying the support of a dedicated Sustainability Manager and external advisors.
Nordic Capital invests in five core sectors in the Nordic region, including healthcare, technology & payments, financial services, industrial goods & services and consumer & retail. It is also active outside the Nordic region, selectively investing in European businesses also in its core sectors, and in global healthcare, where it has built a leading market reputation. Based in Jersey, Nordic Capital’s funds (funds I-VIII) are advised by advisory companies based in Sweden, Denmark, Finland, Norway, Germany and the U.K., and are invested in by a number of institutional investors, many of whom are invested in multiple Nordic Capital funds. Investors include public and private pension funds, sovereign wealth funds, financial institutions, endowments and family offices. Approximately 90% of Nordic Capital’s investor capital comes from investors outside the Nordics.
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