The Nordic countries are one of the most dynamic and successful start-up regions in the world – whether measured by GDP or by capita.
As a result of an acceleration in the number of potential business opportunities, especially tech-based, better access to venture capital and fast growth the number of valuable earlystage growth companies have mushroomed. A number of founders, seed and early investors own stakes of considerable value in these companies. These stakes – however – cannot be monetized, as the market for minority stakes in non-listed early growth Nordic companies is – especially in Denmark – in reality non-existing. The founders and early investors are locked in and at want to realise some of the value created for cash.
The Nordic Secondaries Fund will offer to buy minority stakes in early growth companies with a strong proof of business,
enabling founders, seed and early investors to
monetize part of their holdings – at a
Such transactions give the Nordic Secondaries Fund an opportunity to create substantial value to a number of stakeholders:
The opportunity to buy stakes in early growth companies with strong proof of business at a substantial discount – leading to an above average return on investments at the planned exit.
The possibility to monetize part of their often substantial locked-in wealth – freeing cash to reinvest in new ventures, diversify their portfolios or being able to take some risk off the table and get liquidity for living.
Achieving a more balanced investor base, enabling the companies to continue focusing on maximising growth and value-creation – without consideration of large, cash-constrained shareholders.
There exists no other fund dedicated to Nordic secondaries.
The Nordic Secondaries Fund is founded by a team with substantial experience (90+ years), a proven track-record as founders, early stage investors, professional investors and managers as well as an unmatched network among Danish early stage companies, business angels and investors:
Founder and investor
15 years’ experience as founder and early stage investor: 25+ investments in companies as Endomondo, GoMore, Pleo, Spiir, Tradeshift and Vivino
Experience as executive director in Deloitte, PwC and Topdanmark
Non-executive director, entrepreneur and investor: chairman of Nykredit Invest, deputy chairman of PFA Pension, member of the investor committee of Nordic Eye
30 years’ experience from investments and asset management; 2 years’ experience as early stage investor and entrepreneur
Experience as CEO of SEB Asset Management (Denmark) and Danske Capital
Business angel and Investor
35 years’ experience from investments and asset management; 2 years’ experience as early stage investor: 20+ investments in a.o. LegalDesk & Sky.Garden
Experience as founder of Sirius Kapitalforvaltning and PP Capital Asset Management
The founders manage the fund, i.e. source deals, decide investments, …
The founders are supported by an
advisory board of senior, successful and well-connected founders and early stage investors:
The advisory board supports primarily in deal-sourcing and as a sounding board for investment decisions.
Investor and entrepreneur and supervisory board member
20 years’ experience in investments
Last 5 years as early stage investor and entrepreneur
Experience as Founding partner Capidea Private Equity, Head of Structural Growth and Strategy Nordea Asset Management.
15 years experience within the international IT business as specialist advisor
5 years experience as private investor in seed and scale up businesses
10+ private investments
Associated with Business Angel networks, Patron based Funds, Public incubator and capital environments and traditional VCs.
20 years’ of experience in the legal industry
Advisor on M&A transactions, including private equity and venture capital investments and divestments.
15+ years as board member within various industries
Business angel investor
All the founders and advisors have invested in the fund and are thus all strongly incentivised to create an attractive return.
In combination, the founders’ and advisors’ network among early stage companies and investors give the fund a unique access to deal flow.
The fund has a number of simple but proven investment criteria. For an investment to be approved, it has to meet the majority of the following criteria:
funding by venture capital or corporate venture
(IPO, industry sale, …) realistic within 5 years
to valuation at latest funding: 40-50%
The Nordic Secondaries Fund targets €50m, Initial Closing at €30m with a hard cap at €70m, from primarily Nordic institutional
investors and early stage investors seeking to diversify their portfolios. The lifetime of the fund is
7 + 3 years with an active investment period of 4 years.
The fund targets to make at least +3x return on its invested capital with an IRR above 20% net of 1% management fee and 20% carry above an 8% hurdle rate . This is a return substantially above average in the current Nordic venture capital market.