In partnership with the companies, long-term values are created mainly through sales growth and profitability improvements. How this is done in practice differs from company to company. As an active owner, we can help recruit key people and supply the capital that enables the companies to invest in product development, improved customer offerings and inroads in new markets. We can also offer a far-reaching network that can share best practices and new ideas. It might even entail making add-on acquisitions that provide revenue and cost synergies, or investments in new production technology to improve effectiveness and productivity. We always aim to offer management and the board new perspectives, particularly in sustainability issues where we work in a structured way with clear targets and continuous follow-up.
Occasionally, initiatives that re-define entire sectors are taken. One such example is Inwido, which was listed in 2014 – and in which we sold our final shares during the autumn of 2015. During our holding period, 30-something window and door manufacturers were acquired and integrated into a well-functioning group. Today, Inwido is Europe’s largest manufacturer of windows and doors. Large-scale and transformative changes are not always needed to create great value. Steadily improving profitability and raising sales growth by a few percentage points can generate major effects, as in the case of Nordic Cinema Group, where an overhaul of the Nordic cinema industry resulted in continuous improvements. Our single greatest contribution to creating value is however to establish the company’s strategies together with management and the board, and to be clear in our demands to ensure that they are implemented and produce the desired results. This is how the investment idea behind the acquisition is realised. ArcusGruppen is a good example of a well-executed strategy where the company has evolved from a Norwegian chemicals and spirits company to the leading supplier of wine and spirits in the Nordic region.