The story of IK

The story of IK

The Beginning mately €108 million in final commitments, 1994-1996 The IK 1994 Fund IK Investment Partners’ origins lie in Enskilda mainly from Scandinavian investors. Expanding into Europe Ventures Ltd, a based subsidiary of The first investment was a small Swedish Having executed well on its initial strategy, IK SE Banken, (SEB), which in 1988 business, Idesta, a “corporate orphan” from in 1994 raised its second and the first independ- sponsored founder Björn Savén to raise the within the Atlas Copco group, followed by two ent, fund, the IK 1994 Fund, which closed with Scandinavian Acquisition Capital Fund (SAC), more holdings, resulting from the mergers of commitments totaling €250 million. the first private equity fund raised targeting the different acquisition targets, Liber and Nyge The Nordic investor base was broadened to Nordic markets. CSE Aviation. In 1991, SAC invested in the include European and North American insti- Savén, a Harvard-educated Swede, began his Norwegian Avis franchise, renamed Liva Bil, tutions, many of which remain with the group career in the corporate world. Working also in and the Danish/Swedish ice-cream group to date. North America in the early 80’s, he witnessed Hjem-Is. The IK 1994 Fund’s first investment was first-hand the growth and strength of private Over the next few years, several more the acquisition of KCI Konecranes, a landmark equity ownership as he competed with buy-out investments were made across the Nordic transaction for Finnish private equity. The com- funds for investments. He identified a gap of region, mainly buyouts from larger industrial pany was successfully exited through a listing active ownership in the Nordic market, where groups and co-operatives. on the Helsinki Stock Exchange two years later. at the time conglomerates were much the norm. On 19 May 1993, in the midst of Sweden’s The IK 1994 Fund continued to make invest- Capital and industrial support were lacking for financial crises, Industri Kapital (IK) became ments in the Nordics and in 1995, it expanded their so called “corporate orphans” as inde- an independent entity, when the team’s into the Benelux region, with the acquisition pendent companies, as well as for family owned partner bought SAC’s assets and Enskilda of Amas, a Netherlands-based specialist in air companies and others faced with issues, such Ventures’ Nordic activities from SEB. At that and sea freight-forwarding and related services. as succession planning or restructuring needs. point, SAC was renamed the Industri Kapital IK’s international expertise appealed to local In the footsteps of Swedish entrepreneurs 1989 Fund. companies and in 1996, the group completed its from Alfred Nobel to the Wallenberg’s, Savén IK moved to its current head office at first Belgian deal, fish processor Pieters. pioneered the creation of strong and successful Brettenham House in London and local In 1996 the IK 1994 Fund acquired Nobia, private equity firms in the region. investment advisory offices were opened in the building products division of pulp and Stockholm and Oslo. paper group Stora Enso. This was the first time 1989-1993 SAC/The IK 1989 Fund The first exits were also completed IK Funds had bought a loss-making business Creating an industry that year, through the divestitures of Liber, with significant restructuring needs. Through The SAC fund first closed in 1989 with approxi­ Graphium and Liva Bil. strategic and operational efforts, Nobia became The story of IK

one of the group’s most successful investments, the size and complexity of transactions also 2007-2012 The IK 2007 Fund ultimately listing on the Stockholm Stock undertaken by IK in addition to its traditional European focus and leadership transition ­Exchange in 2002. mid-market focus. The strong performance of the IK 2004 Fund led At that time, IK established a special to over subscription of the sixth fund, IK 2007, 1997-1999 The IK 1997 Fund in-house team to provide operational and which closed with commitments of €1.7 billion. A step-change in growth strategic advice for the group and its portfolio The following year, Industri Kapital became By the late 1990s, IK had gained recognition companies. Known as the Strategy, Operations IK Investment Partners. The change of name across Europe and the US and the third fund, and Business controls team (SOBC), it has reflected a new phase in the group’s develop- the IK 1997 Fund closed with commitments of provided invaluable support over the years, ment, consolidating its pan-European footprint €750 million. and continues to do so. and broad investment agenda, and highlighting Industri Kapital had made around 25 The IK 2000 Fund also made the group’s the successful transition of ownership to a new ­different investments by then and capital from first investment in France, through the generation. the IK 1994 Fund had been returned in full, acquisition of Laho Equipement, followed by In 2010, Christopher Masek and Detlef through the exits of Konecranes and Swedish the public-to-private acquisition of Groupe ­Dinsel became Managing Partners, with mail-order company Ellos. Fives-Lille. ­responsibility for the Executive Committee IK opened a local investment advisory office In 2002, IK provided three out of the and the Investment Advisory Committee in in 1997, and in 1998 the group made four private equity-backed IPOs in Sweden, ­respectively. Björn Savén became non-­executive its first investment in Germany. listing Alfa Laval, Nobia and Intrum Justitia. Chairman. Oriflame followed in 2003. The Fund was active all through the finan- 2000-2003 The IK 2000 Fund cial crises, making investments across Northern Rapid development and expansion 2004-2006 The IK 2004 Fund Europe and achieving several successful exits. The new millennium signaled further growth Developing in breadth and depth in appetite for private equity investing and in IK closed the fifth fund, the IK 2004 Fund, 2013 The IK VII Fund 2000 IK closed its fourth fund, the IK 2000 with €825 million in commitments. Onwards for the long-term Fund, with €2.1 billion in commitments. The fund acquired businesses across the IK closed its seventh fund, IK VII Fund, in One of the most notable investments was the Nordic region, Benelux, the DACH region and 2013, with €1.4 billion in commitments. NOK 10 billion public-to-private acquisition of France and in 2006 opened a local advisory The new fund attracted interest from Norwegian explosives and chemicals con- office in . ­investors across the globe, including Asia. glomerate Dyno Industrier, which underwent A number of attractive investments Looking to the future, IK is determined to significant operational re-engineering once it and successful exits, including Prevesta carry on doing what it does best – investing in had been acquired. and ­Magotteaux , were completed and the mid-sized companies, growing them, improving Similar-sized investments included Alfa ­partnership within IK was broadened from performance and creating sustainable value for Laval and Perstorp. These deals highlighted four to over ten partners. all stakeholders.