90 Years of Building Great Companies
Investor has had the same business philosophy ever since the company was founded in 1916 – to finance and build best-in-class companies. Over the years,
we have steadily evolved in step with the times, with historical and economic developments, with boom times and depressions, with globalization trends, wars, and with ups and downs in the world’s financial markets. We have invested in companies in new and attractive markets and industries, but have also divested holdings along the way. Over the past 90 years, our willingness to invest has been consistently based on the same business philosophy.
Gradual development
Investor was founded 1916 and spun out of Stockholms Enskilda Bank. Investor has gradually developed over the years. From 1916 to the early 1970s, Investor was part of Stockholms Enskilda Bank, which had been managed by the Wallenberg family ever since the bank was founded in 1856. Later, Investor gradually developed into a holding company with independent operations, developing its own global network of people and companies.
In the 1980s, we participated in major structural transactions that concentrated our portfolio further. As a result of this increased concentration, Investor could take a more active role in the development and expansion of its holdings.
Unlisted growth companies
In 1995, Investor started to build the business area we call Private Equity Investments today. This involved gradually increasing exposure to unlisted growth companies in the technology and healthcare sectors in the United States, Northern Europe and Asia. By 1999, unlisted holdings accounted for five percent of the portfolio.
Focusing the portfolio
In 2001, Investor sold its holdings in Stora Enso, SKF and SAS and increased its stakes in Ericsson and SEB. This broadened our exposure to the telecom and financial services sectors and we completely exited the forest products industry and airline industry. This change was part of our strategy to focus the portfolio and increase our exposure to growth industries. During the years 2000 to 2003, when stock markets declined, Investor continued to invest in companies such as ABB and Ericsson, but also in promising companies in the private equity market.
In 2000, Investor and Hutchison Whampoa started the 3G operator 3 Scandinavia. In 2006, WM-data was sold and Investor strengthened its positions in Electrolux and Scania. Husqvarna became a new Core Investment after it was spun out of Electrolux. Investor and EQT bought out Gambro from the Stockholm Stock Exchange and unlisted assets represented 13 percent of the portfolio at year-end 2006.
In 2007, Mölnlycke Health Care was acquired in partnership with Morgan Stanley Principal Investments. This acquisition further expanded the Operating Investments business area and unlisted holdings accounting for 19 percent of the investment portfolio at the end of 2007. An agreement was also signed to sell the core investment OMX to Borse Dubai.
Bright future
Investor’s strong portfolio, dedicated organization and solid financial position put the company in a solid position to create competitive returns going forward. This is a tradition that Investor has managed to preserve throughout its more than 90 year history.
Information updated 2008-03-26 13:18:46