Evaluation process

Altor evaluates the attractiveness of an investment opportunity by studying three key areas:

Industry attractiveness — we review product substitution trends, the structure of customer and supplier base, the barriers to entry, and the industry's competitive landscape.
Market position – we map the relative size of different market segments, the company’s market share across these segments and its change over time. This helps us identify strengths and weaknesses, and potential for improvement.
Value creation potential – we seek to identify value creation potential from accelerating revenue growth and increasing cost and capital effectiveness.

Potential investment opportunities are discussed by the Altor team on a weekly basis. A dedicated Investment Committee consisting of the Partners of Altor Equity Partners decides whether to commit significant resources to complete a detailed evaluation of an opportunity after which a final investment descision can be made by the Fund.

Summary of investment criteria

Preferred situations:

An opportunity to capitalize on Altor's experience with complex transactions and opportunity to drive changes for substantial revenue growth, margin expansion or improved capital management.

Geographic focus:

Nordic region

Company profile and size:

Buyouts and growth capital in companies with revenues typically of EUR 50 million - EUR 500 million. Ability to selectively invest also in public companies and distressed debt.

Size of typically investment:

EUR 25 million - EUR 150 million equity investment, but selectively up to EUR 400 million.

Ownership period:

Normally 5 - 7 years, with flexibility beyond 10 years.

Evaluation process