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CloseLatest update: 14 August 2020
The volume of exits by private equity firms across the Nordic countries in Q2 2020 fell to its lowest point in more than a decade, according to Unquote Data.
Unquote recorded just 18 sales of PE-backed companies across the Nordic region in the second quarter, marking a low not seen even during the global financial crisis.
While the number of realisations recorded every second quarter has been on a steady downward trend over the past three years, the sharp drop of 55% in exit volume in Q2 2020 compared with Q2 2019 is unprecedented. Compared with Q1 2020, which recorded an already low 27 exits, the decrease is still more than 33%.
The slowdown in exit activity in the Nordic countries is in line with some other European regions, including southern Europe, where exit volume fell by 65% year-on-year, and France, which recorded a 60% decline.
The subdued activity reflects the reluctance shown by GPs during the peak of the pandemic to initiate sale processes, prioritising the needs of existing companies in their portfolios and fearing a hit on exit multiples, driven by uncertainty over the prospects of portfolio companies and a lack of appetite on the buy-side.
The slowdown in exits arrices parallel with a reduced number of buyouts, with dealflow declining by 65% year-on-year in Q2, according to Unquote Data. Consequently, secondary buyouts were few and far between as an exit type in Q2, going from 25% of all exits in Q2 2019 to 5.5% in Q2 2020. Trade sales, on the other hand, showed resilience, comprising 55% of all exits, versus 44% in Q2 2019.
Notable Q2 2020 exits
Company | Backers | Advanced sector | Exit route | Exit date | Country |
---|---|---|---|---|---|
Boozt | Verdane Capital Partners | Internet | Other | May 2020 | Sweden |
Masai Clothing Company | Silverfleet Capital | Clothing & accessories | Receivership | May 2020 | Denmark |
Scanbur | Erhvervsinvest Management | Medical equipment | Other | Jun 2020 | Denmark |
Mapillary | Playfair Capital, Sequoia Capital, Atomico Ventures, Samsung Venture Investment Corporation, BMW i Ventures | Software | Trade sale | Jun 2020 | Sweden |
Kaiku Health | Debiopharm, Reaktor Ventures, Tesi | Software | Trade sale | May 2020 | Finland |
Hector Rail | EQT | Railroads | Trade sale | Jun 2020 | Sweden |
Wexus Gruppen | Norvestor | Building materials & fixtures | Trade sale | Jun 2020 | Norway |
Scrive | Inbox Capital | Software | Secondary purchase | Jun 2020 | Sweden |
Kotikatu | Vaaka Partners | Business support services | Trade sale | Jun 2020 | Finland |
Napp | Promentum Equity Partners | Software | Trade sale | May 2020 | Denmark |
Canorama | Folmer Management | Computer services | Trade sale | Jun 2020 | Finland |
Evondos | Serendipity Partners | Medical equipment | Secondary buyout | May 2020 | Finland |
One Nordic | Altor Equity Partners | Business support services | Trade sale | May 2020 | Sweden |
Source: Unquote Data
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