We believe in engaged ownership and take a long-term investment perspective. Our ambition is for our companies to remain or become best-in-class, to outperform competition and reach their full potential.
Our investment philosophy is “buy-to-build”, and to develop the companies over time, as long as we see further value creation potential. We actively support our companies in making attractive investments, and are willing to sacrifice short-term profit-ability for longer-term value creation. We firmly believe that to become or remain best-in-class, companies must have the ability to invest in research and development, regardless of pressure from the stock market or from other external forces. However, our long-term perspective is never an excuse for weak short-term performance.
If we arrive at the conclusion that a certain company would be better off in a different ownership, or that it no longer offers attractive enough development potential, we would actively drive an exit process and try to maximize the value for our shareholders.
Execution is key
The future of our companies depends on their capacity to drive change and their willingness to invest for the long-term. We encourage innovation, creativity, collaboration and relentless execution, so that our companies can be successful and grow profitably over time.
Cash flow generation
Over the past decade, we have established strong cash flow generation based on dividends from our listed core investments, distribution from Patricia Industries’ companies and net proceeds from our investments in EQT. This cash flow allows us to finance investments in both existing and new companies and to pay a steadily rising dividend.
We own companies in industries we understand well, and in which we can use our experience, network, and financial expertise. This means that we invest in companies in the Nordic region and in North America, mainly within; engineering, healthcare, financial services and technology.
Attributes that we seek in our investments are; strong market positions, sustainable and flexible business models, strong corporate cultures, exposure to growth markets, strong cash flow, continuous focus on innovation and R&D, and exposure to service and aftermarket sales.