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Share 2016-09-23 17:29 RATOS B 40.16 SEK

Investment strategy

Ratos's focus and goal as an active owner is to contribute to the long-term and sustainable operational development of its companies.

Investment strategy

Ratos invests mainly in unlisted medium-sized Nordic companies with clear development potential. The enterprises should have an established business model through which Ratos and the companies can together identify and then realise a potential.

Holding and investment interval
Normally, Ratos is the largest owner in the companies, but we can also have a minority holding. However, our constant ambition is to be a committed owner that takes part in and can influence the companies’ development. We gladly co-invest with entrepreneurs and other owners, and we have a minimum holding of 20%. We normally invest a minimum of SEK 250m and a maximum of SEK 5bn in equity. Ratos does not invest in the early phases of companies’ life cycles.

Geographic focus
Ratos invests in enterprises that are headquartered in the Nordic region. No geographic limits exist for add-on acquisitions to our companies.

Sector independent
Ratos develops companies through active ownership. Independent of sector, we lend the innovativeness, experience, expertise, contacts and capital needed to realise the potential of our companies.

Selection process
Ratos focuses on self-generated transactions. Our investment organisation identifies and analyses companies with potential for development that suit Ratos’s portfolio of companies. We also take part in processes driven by investment banks and other advisors.

Exit strategy
Ratos does not have any limits to its holding period. The companies’ return potential and Ratos’s ability to contribute to their development is continuously assessed. Ratos can retain its holding as long as value is created in the company that exceeds the return target, which is often for a five-to-ten-year period.