How we do it
Strong industrial network
Investor was founded by the Wallenberg family in 1916, and is an engaged owner of high-quality, global companies. We use our extensive professional network to identify and evaluate attractive business opportunities.
Strong financial flexibility
Our strong balance sheet and cash flow allow us to support our companies long-term, capture investment opportunities and pay a steadily rising dividend.
Highly skilled employees
We focus on the long-term development of our employees and offer opportunities to continuously learn and build skills and knowledge. A strong corporate culture, which is open and adapts to changes in the outside world, is key if we are to be able to recruit and retain key competence.
We exercise our influence through our representation on the companies’ boards. We spend much of our time to develop our strong industrial network and to find and develop talent. This so that we can ensure that the best people with different competences and experiences are appointed to our boards.
Investor is often the largest shareholder in our companies and we always work with the opportunities and challenges facing each individual company. We depend on the boards to ensure the building of strong and healthy companies for the long-term, while at the same time creating the needed urgency around short-term performance.
We believe in boards of limited size, which still allows for sufficient breadth of capabilities while ensuring a high level of individual accountability and time commitment. Our experience is that a well-functioning board is diverse in terms of age, gender and background. The board should include individuals with relevant industrial, functional and geographic knowledge which is not too narrow or specific. Most importantly, the board should have the experience and competence necessary to support the company’s long-term ambitions. Investor expects the boards to engage in strategic issues in order to ensure investments in long-term attractive opportunities. We strive for strong alignment with the chairperson and regularly invite all chairpersons in our companies to a “Chairs’ Circle” to discuss key trends and share knowledge.
Value creation plans
We maintain a close and continuous dialog around value creation with our companies’ boards and CEOs. Our ownership work is mainly carried out by our business teams consisting of our board representatives, investment managers and analysts. The business teams analyze the industries and benchmark the companies’ performance versus their competitors. Based on the analysis, we develop and constantly refine value creation plans for each company.
These plans identify strategic key value drivers that we want the companies to focus on, in order to maximize long-term value. The plans typically focus on operational excellence, profitable growth, capital structure, industrial structure, innovation, sustainability, talent management and corporate health.
It is critical that the owners, boards and management teams are aligned and that the value creation plans are followed-up periodically and thoroughly.
Our business teams, consisting of our board representatives, investment managers and analysts, develop value creation plans for each company, identifying strategic key value drivers for the next three to five years. We maintain a close and continuous dialog around value creation with our companies’ boards and CEOs. The plans typically focus on:
- operational excellence,
- profitable growth,
- corporate health,
- industrial structure,
- talent management,
- sustainability, and
- capital structure.