Argentum analyses the state of Nordic private equity
Argentum’s new market report shows that private equity is well-suited for uncertain times where businesses need to turn around fast, limit lay-offs and financial losses, and see opportunities amidst the challenges.
As for the rest of the world, 2020 was unusual also for players within Nordic private equity. However, although uncommon and different, it is also fair to say that our market segment saw possibilities amidst the challenges caused by the pandemic.
Last year, there was a record–high number of venture capital deals in the Nordic region, and the invested amount increased for the third straight year. Over half of all venture deals were directed to technology companies, as tech-enabled services were popular during the pandemic. Besides, there was a 40 per cent increase in health care and life sciences deals. The pandemic has highlighted the importance of biotech and innovative health solutions, and fund managers regard the industry as attractive. Read more about the findings in the venture segment here.
In the buyout segment, investors flocked to companies that were not too affected by the pandemic. Technology companies attracted 39 per cent of all deals, making it the largest sector for the first time in Argentum’s tracking of the market. Read our interview with Eivind Roald, head of QNTM Group set up by Altor, which aims to create Europe’s largest ecosystem of ICT companies. Fundraising in the buyout segment reached new heights during the pandemic, raising €26 billion in total. Read more about the buyout segment here.
We have also interviewed companies about how they were affected by the pandemic. For example, Confrere, a Norwegian provider of video consultation software to doctors, experienced massive growth from March to May last year. You can read our extended interview with CEO at Confrere, Svein Yngvar Willassen, here. Further on, Trondheim-based Signicat creates software for digital identity management and electronic signatures, making us able to make payments and log on to public services smoothly. This has been integral during the pandemic when we have needed to live our lives digitally. Read more about them here.