Investment strategy
Our overarching investment strategy is based on long-term ownership whereby additional value is generated over time by bringing together knowledge, competence and capital.
Connecting Capital is a Swedish limited liability company and operations are conducted without time constraints, with investment horizons that vary depending on the development and needs of holdings.
Our investments are structured within three areas:
• Majority Holdings
• Real estate
• Asset Management
Connecting Capital invests mainly in unlisted companies, with varying ownership shares and degrees of maturity. To a certain extent, we also invest in listed companies and conduct asset management in cooperation with the market’s leading asset managers.
Buisness concept
Connecting Capital’s business concept is to invest in well-managed companies with sound underlying operations. The companies we acquire face a process of change in which we are able to contribute additional value generation through active and responsible ownership, as well as capital.
Connecting Capital conducts its operations as a limited liability company and does not impose time constraints on its investments. Value shall be generated through acquisitions, development, mergers and divestments.
Connecting Capital shall focus on value generation by means of long-term investments in stable and well managed companies with strong cash flow.
Connecting Capital shall maintain a strong capital base, providing us with the opportunity to act quickly and take advantage of business opportunities that arise, regardless of the market situation and economic trends.
Investment criteria
Connecting Capital seeks stable and well managed Nordic companies entering a process of change. The investment situation may vary from case to case and may, for example, originate in a need for expansion capital, an imminent generation shift or a need for a new management and structure. Connecting Capital focuses on investments in mature companies that normally have a strong cash flow. However, the level of maturity of a company in which we invest may vary.
Connecting Capital invests in mature industries with a focus on industrial companies and consumer-driven operations.
Connecting Capital’s ownership share may vary. The principal focus is on majority investments.
An ideal investment for Connecting Capital would be a company with the following characteristics:
• Annual sales of between SEK 100 million and SEK 1 billion
• Operations in a mature industry and a well-established market segment
• Strong market position
• Clear growth strategy and good development opportunities with internationally competitive products and/or services
• Favorable profitability and stable cash flow
• A competent, dedicated and results-oriented management and/or part-owners