Investment strategy and corporate life cycle
Ferd Capital invests in both venture companies and mature companies. For venture companies, we normally expect that the company has completed the start-up phase and has demonstrated that it can operate profitably. In relation to the traditional presentation of the corporate life cycle, our investments will be in the areas shown on the right in the diagram below.
Size and type of investment
Ferd Capital plays an active ownership role in its portfolio companies. In view of this, we will expect our investment to give us the formal right to influence the company's development. We therefore principally invest in equity capital (shares).
We also attach importance to being one of the leading owners of our companies. This means that we hold a significant proportion of the shares or voting capital in each company. In situations where our ownership interest does not give us full control in our own right in a privately owned company, we will often have shareholder agreements that govern our collaboration with other leading owners in order to give Ferd a satisfactory degree of influence.
Ferd Capital also looks for a total return that is attractive in relation to the size of its investment, taking into account the resources needed to evaluate and actively participate in the investment. We therefore expect to invest in portfolio companies where our investment will be between NOK 100 million and NOK 1,000 million.
Characteristics of portfolio companies
Ferd Capital invests in a wide range of industries and sectors, but avoids companies where value creation is principally driven by factors outside the company's control (for example raw material prices).
We also recognise that physical proximity is often important in order to help us to understand the challenges a company faces and to build a good collaborative relationship with the management team. We therefore prefer to invest in companies that have their head office in Norway or one of the other Scandinavian countries, or that have a close relationship in some other way with these countries.