PRIVATE EQUITY FUNDS IN NORWAY

Activity report

2019(Seed – Venture – Buyout)

ABOUT THE ACTIVITY REPORT 2019

2

Norwegian private equity funds

The Activity Report 2019 is developed for the Norwegian Venture Capital & Private Equity Association (NVCA) by Menon

Economics and PEREP Analytics during the spring 2020. The figures are collected quarterly and directly from the private equity

firm.

Foreign private equity funds

with investments in Norway

Foreign private equity funds with

advisory teams located in Norway

The survey covers activities in

Investments and divestments at cost in portfolio companies located in

Norway

Investments and divestments

at cost in portfolio companies

located in Norway and abroad

Fundraising activity in

Norwegian private equity

firms

This report gives an overview over all PE-activity related to Norway

NVCA uses a different definition of private equity firms than Invest Europe.

This definition differs from the Invest Europe definition, which defines a private equity firm on the basis of where the advisory team responsible for

the investment and divestment is located.

In addition all investments and divestments from the early stage funds backed with 50/50 public funding are categorized as seed activity.

The advantage of the NVCA definition is that the investment and divestment activity is compatible with the fundraising statistics. In addition, the

NVCA definition is in line with what is commonly perceived as the Norwegian private equity industry.

Due to the discrepancy in definition the Invest Europe and NVCA statistics are not completely compatible.

ABOUT THE ACTIVITY REPORT 2019

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 3

Two examples of how the NVCA’s definition applies to the statistics:

1. Investments made from the Swedish office of a Norwegian headquartered PE firm would be defined as

Norwegian

2. Investments made from the Norwegian office of a Swedish headquartered PE firm would be regarded

as an investment made by a foreign private equity fund.

NVCA defines a «Norwegian

private equity firm» as a firm with

headquarters located in Norway.

Industry statistics

The focus of Norwegian funds made a shift towards Norwegian companies in 2019. Investments in Norwegian companies comprised 66 percent of the amount invested, and 82 percent of the number of investments.

Norwegian PE funds invested a total of NOK 8.3 bn. in 2019, a reduction of 900 mill. from 2018. The reduction was due to reduced investment activity in foreign companies. The number of investments in foreign companies more than halved from 90 in 2018 to 42 in 2019. Investments in Norwegian portfolio companies increased by NOK 200 mill., reflecting an increasing number of investments in Norwegian companies. The number of investments made by Norwegian funds have been stable for the last six year in the interval of 227 to 263 per year.

Seed investments increased marginally to NOK 284 mill., increasing for the fourth straight year. Only in 2008 has the amount invested in the seed segment been higher. Norwegian funds’ venture investments fell to NOK 1.3 bn. in 2019, after three years of stable investment levels over 2 bn. This reflects the low number of investments in this segment. Only 89 investments were made by Norwegian venture funds, the lowest level since the coordinated European market tracking started in 2007. The level of buyout investments have been stable for the last three year, and the amount invested increased moderately by 200 mill. to NOK 6.7 bn. in 2019

MAIN OBSERVATIONS 2019

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 4

Market statistics

Norwegian and foreign PE funds invested a record breaking amount of NOK 32.8 bn. in Norwegian companies in 2019. The level is significantly higher than the previous top year of 2014, levelling 19.7 bn. The main driver behind the high level of investments is five large cap buyout investments, of which four were made by foreign funds. As a result of large investments from foreign funds, foreign investments comprised 83 percent of total capital investments in Norwegian companies. Norwegian funds invested NOK 5.4 bn. domestically, a marginal increase from 2018. The level of investments from Norwegian funds in Norwegian companies have been stable in the interval of NOK 5.2 to 5.7 bn. the past three years.

Venture investments in Norwegian companies increased from NOK 0.9 bn. in 2018 to 1.3 bn. in 2019, the highest level since 2007. Equivalently, the number of venture investments increased by 85 percent. Despite the large increase in the amount invested in the buyout segment, the number of investments fell to 51 in 2019, eight fever than the year before. Exit activity in Norwegian portfolio companies increased in 2019. 43 divestments were completed, the highest number in the last four years.

Norwegian ICT companies remains attractive candidates for private equity funds, with a markedly increase in both the number of investments and amount invested. The amount invested in the petroleum sector doubled from previous top levels, while the number of investments is steadily decreasing over time. Fever and larger investments reflect that the petroleum sector has become a more mature industry with an increasing focus on consolidation and streamlining.

MAIN OBSERVATIONS 2019

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 5

FUNDRAISING IN 2019 – NORWEGIAN PRIVATE EQUITY FUNDS

6

Seed880 mill. NOK(90 mill. EUR)

Venture130 mill. NOK (13 mill. EUR)

Buyout6 450 mill. NOK (655 mill. EUR)

Sarsia Seed Fond II

Snö Ventures

Viking Venture 17

Hadean Capital I

Explore Equity Fund I

Verdane Capital X

Total fundraising 2019 – NOK 7 450 mill. (756 mill. EUR )

Over time, Northzone’s activity has shifted from their Oslo offices to other locations. From 2019 onwards, their Oslo office will not be regarded as their headquarters. As a result, their fundraising and investments outside of Norway will not be included in the statistics.

Overall:

• Norwegian PE firms invested 8 300 mill. NOK (EUR 840 mill.) in Norwegian and foreign portfolio companies- 5 400 mill. NOK (EUR 550 mill.) in Norwegian enterprises

- 2 900 mill. NOK (EUR 289 mill.) in foreign enterprises

• Seed: - 280 mill. NOK (EUR 29 mill.) invested. Up from 260 mill. NOK (EUR 27 mill.) in 2018.

• Venture:- 1 280 mill. NOK (EUR 130 mill.) invested. Down from 2 410 mill. NOK (EUR 251 mill.) in 2018.

• Buyout: - 6 710 mill. NOK (EUR 681 mill.) invested. Up from 6 490 mill. NOK (EUR 676 mill.) in 2018.

INVESTMENTS (INITIAL AND FOLLOW UP) BY NORWEGIAN PE FIRMS 2019 (INDUSTRY STATISTICS)

7

Overall:

• 32 800 mill. NOK (EUR 3 333 mill.) invested in Norwegian enterprises by both Norwegian and foreign PE firms- Norwegian PE firms invested 5 400 mill. NOK (EUR 550 mill.)

- Foreign PE firms invested 27 400 mill. NOK (EUR 2 783 mill.)

• Seed: - 280 mill. NOK (EUR 28 mill.) invested. Up from 250 mill. NOK (EUR 25 mill.) in 2018.

• Venture: - 1 270 mill. NOK (EUR 129 mill.) invested. Up from 870 mill. NOK (EUR 88 mill.) in 2018.

• Buyout: - 31 280 mill. NOK (EUR 3 176 mill.) invested. Up from 17 360 mill. NOK (EUR 1 762 mill.) in 2018.

INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN COMPANIES BY NORWEGIAN AND FOREIGN PE FIRMS 2019 (MARKET STATISTICS)

8

• Divestments in Norwegian and foreign enterprises by Norwegian PE firms- 32 divestments by Norwegian PE firms. The same level as 2018.

- 7 divestments within the seed stage. Up from 5 in 2018.

- 7 divestments within the venture stage. Down from 13 in 2018.

- 18 divestments within the buyout stage. Up from 14 in 2018.

- 14 out of 32 divestments were sales to trade buyers.

• Divestments in Norwegian enterprises by Norwegian and foreign PE firms- 43 divestments in Norwegian enterprises. Up from 28 in 2018.

- 7 divestments within the seed stage. Up from 2 in 2018.

- 10 divestments within the venture stage. Up from 2 in 2018.

- 26 divestments within the buyout stage. Up from 24 in 2018.

- 12 out of 43 divestments were sales to trade buyers.

DIVESTMENTS (EXITS) 2019

9

Appendix

Graphs and charts:

Fundraising

Investments

Divestments

FUNDRAISING

1 2

COMMITTED CAPITAL PER YEAR FROM 2001-2019

920 890

201120052001 20062002

14 000

201520042003 20172007 2009 2010 2012

4 650

201420132008 2018 2019

1 480

5 270

1 460

15 260

5 240

3 9804 830

4 020

21 990

11 340

2 010

6 010

15 040

1 250

7 450

2016

Figure 1: New committed capital per year from 2001-2019 (million NOK)

INVESTMENTS

Norwegian PE firms’ investments in Norwegian and foreign enterprises

(Industry statistics)

INDUSTRY STATISTICS: NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AN D FOLLOW UP)

IN NORWEGIAN AND FOREIGN COMPANIES

1 5

960

3 4802 810

2008

3 010

1 530

3 9703 440

4 6705 720

2007

1 740

1 080

20102009 2016

4 640

1 790

3 7302 530

6 030

2011

1 380

2 850

2012

2 420

2013

3 850

20192014

6 8604 200

6 030

2015

3 310

3 490

2017

9 160

3 920

5 240

2018

5 420

5 520

6 200

5 180

3 890

4 860

6 390

8 840

12 060

9 030

8 270

Norwegian company

Foreign company

Figure 2: Total amount invested by Norwegian PE firms (million NOK)

INDUSTRY STATISTICS: NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AN D FOLLOW UP) IN NORWEGIAN AND FOREIGN COMPANIES

1 6

251

196

255282 288 283

222186

146182 174

151190

87

117

9273

106

47

79

53

81

81 8995

42

20132010

330

2014

239

2007 2008 2009 2011 2012 2015 2016 2017 2018 2019

301

338347

313

355

394

227

263 263246

232

Foreign company

Norwegian company

Figure 3: Number of investments by Norwegian PE firms

1 7

Figure 4: Amount invested by phase (million NOK)

NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AND FOLLOW UP) BY PHASE

990

850

2 220

270

2 410

2012

3 630 3 210

1 6202 290

8 840

3 490

2 200

2008

9 290

20102007

1 550

410

1 200

2 430

260

6 190

2009

1 120

3 660

250

5 380

280

2011

3 580

170

2013

160

5 560

1 150

2 650

160

20182014

7 150

210

1 510

180

2015

120

2016

6 610

260

2017

6 490 6 710

2019

1 280

280

5 170

3 890

6 390

5 530

4 870

6 870

12 060

9 020 9 160

8 270

Seed

Venture

Buyout

1 8

Figure 5: Number of investments by phase

NORWEGIAN PE FIRMS’ INVESTMENTS (INITIAL AND FOLLOW UP)

BY PHASE

41 43 47 48 56 52 57 54 60 65 72 58 47

217

171193 185

209

163 141

104 96

140 118113

89

80

99

107 122

129

115

103

81 71

5873

75

96

201920092007 20122008 2010 20132011 2014 2015 2016 2017 2018

Seed

Venture

Buyout

1 9

Figure 6: Buyout - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

480450

820

970

900

440

2 760

1 320

3 150

3 630

2007 2008 2010

1 610

2009

2 690

20192011

1 150

2012

2 430

2 060

2 950

3 320

20182013

1 670

3 890

2014

4 210

2015

3 000

6 290

2016

2 990

1 270

2017

5 220

6 270

Initial

Follow up

2 0

Figure 7: Number of initial and follow up buyout investments

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

32

2319 20 19 19

22

3023 25 26

4135

920 28 28

3733

3524 37

40

46 17

12

201420102009 20132007 20122008 2011 2015 2016 2017 2018 2019

Follow up

Initial

2 1

Figure 8: Venture - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

620 580

920

330 420310

540410

840

950

930

620

700

660700

540

610

930

810

440

20162011 201320122008

1 120

1 350

2007 2009 2010

1 150

2014

1 100

2015

1 720

1 020

1 180

2017

1 600

990

2018 2019

2 300

1 550

1 200

1 620

850

1 510

2 650

2 200

2 410

1 280

Follow up

Initial

2 2

Figure 9: Number of initial and follow up venture investments

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

101

36 4153

30 2919 26 20

47 40 42 49

116

135

152 132 179

134

122

7876

93

78 7140

201320112007 201920102008 2009 2012 2014 2015 2016 2017 2018

Follow up

Initial

2 3

Figure 10: Seed - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

240

190

80 8040 30 30

7090

6090

170 170

40

220

180 170 240

140 13090

90

60

130

90120

290

201820122007 2010 20142009

410

2008

250

2011 2013 2015 20192016 2017

260280

260280

170160 160

180

120

220

Follow up

Initial

2 4

Figure 11: Number of initial and follow up seed investments

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

64

37

2132

13 9 10 915 15

22

44

58

1662

86

90116

10693

72 5643

51

31

38

2008 20142007 2009 20132010 20182011 2012 2015 2016 20192017

Follow up

Initial

2 5

Figure 12 a): Norwegian PE firms investments by sector and phase in 2019 (million NOK)

INVESTMENTS (INITIAL AND FOLLOW UP) BY SECTOR AND PHASE BY NORWEGIAN PE FIRMS

3300

1730

480 560290 250 160 20

450

270 1010

40

Petroleum

140

3060

10

0

Business

related

services

and industry

services

Business

related

products

and industry

products

IT

40 30

70

Fishery and

aquaculture

90

Life science

3390

0

Retail

/consumer

services and

products

0

630

Financial

services

150

0

0

Other energy

sources

0 110 0

Cleantech

00

Construction

250290

0

303090

Chemicals

and

materials

0 0

50

1080

1740

370230

0

Venture

Seed

Buyout

2 6

Figure 12 b): Number of investments by sector and phase in 2019 (million NOK)

NUMBER OF INVESTMENTS BY SECTOR AND PHASE BY NORWEGIAN PE FIRMS

10 6 7 6 4

31

18 811

45

1714

7

21

ConstructionLife science

9

1

4 31

IT Petroleum Business

related

products

and industry

products

4 42

Other energy

sources

34

Cleantech

10

23

Business

related

services

and industry

services

00

12

3

Chemicals

and

materials

5 0

Retail

/consumer

services and

products

1 0

Fishery and

aquaculture

12

Financial

services

5 0

5

1

80

38

32

117

31

Seed

Venture

Buyout

Investments in Norwegian enterprises by Norwegian

and foreign PE firms(Market statistics)

2 8

Figure 13: Total amount invested in Norwegian companies (million NOK)

MARKET STATISTICS: INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN COMPANIES

27 410

2016

16 730

2008

19 740

4 650

2 810

13 220

3 970

2011

4 670

9 490

2007

6 950

12 980

3 440

3 460

19 620

2009 2018

9 000

9 320

4 640

2010

3 730

14 130

5 180

3 4802 530

3 900

2012

9 250

2013

3 010

32 830

2014 2015

3 590

6 030 5 720

2017

5 240

14 380

5 420

2019

10 390

6 270

12 730

7 710 7 380

9 620

18 700

Foreign PE firm

Norwegian PE firm

2 9

Figure 14: Total number of investments in Norwegian companies

MARKET STATISTICS: INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN COMPANIES

251

196

255282 288 283

222186

146182 174

151

190

29

46

50

43 3782

62

58

56

4784

55

70

20082007 2009 2013 20182010 2011 2012 2014

229

2015 2016 2017 2019

284280

242

305

325 325

365

244

202

258

206

260

Foreign PE firm

Norwegian PE firm

3 0

Figure 15: Amount invested in Norwegian companies by phase (million NOK)

INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN ENTERPRISES BY PHASE

250290

260

250

240 170

150

140

140

90

180250

280

1 180

2007

1 080

9 010

5 030

98012 660

2009

11 310

2010

6 730

740

2017

6 410

810

820

1 920

31 280

2012

410

870

20162013

18 790

860

2015

7 140

13 540

450

8 690

2019

1 270

20142011

17 650 18 500

20182008

830

Buyout

Seed

Venture

3 1

Figure 16: Number of investments in Norwegian companies by phase

INVESTMENTS (INITIAL AND FOLLOW UP) IN NORWEGIAN ENTERPRISES BY PHASE

41 53 61 57 62

10182

66 53 64 69 59 51

162

99

137 146 139

149

101100

82

110121

61113

77

90

107122 124

115

101

78

67

55

68

86

96

2007 2008 2009 2010 2011 20132012 2014 2015 2016 2017 2018 2019

Seed

Venture

Buyout

3 2

Figure 17: Buyout - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

3 580

3 260

10 450

2007

8 690

9 740

590

9 010

2 370

6 560

3 560

2008

7 150

2014

5 450

22 560

1 450

2009

13 530

5 350

1 570

2010

1 200

2019

5 530

2011

960

1 110

2012

5 300

2013

17 830

10 270

16 130

2015

8 720

3 340

18 500

2016

2 210

7 210

11 310

2017 2018

5 030

10 440

6 410

12 660

17 65018 790

31 280

6 730

Follow up

Initial

3 3

Figure 18: Number of initial and follow up buyout investments

INITIAL AND FOLLOW UP BUYOUT INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

3226

17 21 25 26 2937

20 23 26

36 36

927 44 36

37

75

5329

33

4143 23

15

2007 201920152013201220102008 2009 2011 2014 2016 2017 2018

Follow up

Initial

3 4

Figure 19: Venture - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

720580

760

250 240110

300 320 340

590

830

810

360

390

420

490 570

300

510

360

520 520

280

430

2013

1 110

2007 201120092008 2010 2012

440

2014

860

80

2015 2016

1 260

20192017 2018

810

1 920

1 080

870

970

1 180

740

410

810 840

Follow up

Initial

3 5

Figure 20: Number of initial and follow up venture investments

INITIAL AND FOLLOW UP VENTURE INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

86

31 29

50

20 2614 15

8

28 27 26

71

76

68

108

96

119123

87 85

74

8294

35

42

2014

61

139

2007

146

20112008 2009 2010

82

20132012 2015 2016 2017 2018 2019

162

99

137

149

101 100

110

121113

Follow up

Initial

3 6

Figure 21: Seed - initial and follow up investments (million NOK)

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

210

11090 80

30 4020

50 6030

60

170 170

40

180

180170

210

140

13090 80

60

130

80110

2010 20132007 2008 2009 2011 2012

180

2014 2015

140

2016 2017 2018 2019

240

270

250

290280

250

150140

90

190

250Follow up

Initial

3 7

Figure 22: Number of initial and follow up seed investments

INITIAL AND FOLLOW UP SEED INVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS

35

2232

10 9 9 612 12 17

56 59

55 85

90

114106

92

72 5543

51

30

37

2010 2013 20152008 2009 20122011 2014 2016 2017 2018 2019

Follow up

Initial

3 8

INVESTMENTS IN NORWEGIAN ENTERPRISES BY SECTOR AND PHASE IN 2019 (MILLION NOK)

Buyout Venture Seed Total

Follow-up Initial Total Follow-up Initial Total Follow-up Initial Total

Business related products and industry products 530 530 0 40 40 20 0 30 590

Business related services and industry services 30 3850 3890 0 0 0 10 10 3890

Chemicals and materials 30 0 30 0 0 0 30

Cleantech 10 80 90 10 10 10 110

Construction 10 80 90 20 20 110

Financial services 610 800 1410 1410

Fishery and aquaculture 10 10 0 0 10

IT 7730 9020 16750 220 560 790 60 90 140 17680

Life science 100 100 150 70 210 10 20 30 350

Other energy sources 80 50 130 20 20 10 10 160

Petroleum 7730 7730 10 40 50 0 30 40 7810

Retail /consumer services and products 250 350 610 0 0 0 0 0 0 600

Total 8720 22510 31250 440 810 1250 100 170 270 32750

3 9

NUMBER OF INVESTMENTS IN NORWEGIAN ENTERPRISES BY SECTOR AND PHASE IN 2019

Buyout Venture Seed Total

Follow-up Initial Total Follow-up Initial Total Follow-up Initial Total

Business related products and industry products 2 2 3 8 11 5 2 7 20

Business related services and industry services 1 6 7 1 1 1 1 2 10

Chemicals and materials 6 1 7 2 1 3 10

Cleantech 2 1 3 2 2 4 7

Construction 2 2 4 3 3 7

Financial services 1 1 2 2

Fishery and aquaculture 1 1 1 1 2

IT 7 12 19 17 22 39 18 27 45 103

Life science 1 1 5 30 35 6 11 17 53

Other energy sources 2 3 5 2 2 2 2 9

Petroleum 3 3 4 4 8 2 12 14 25

Retail /consumer services and products 1 5 6 1 1 2 1 1 2 10

Total 15 35 50 42 70 112 37 59 96 258

Figure 23: Initial and follow up investments in the IT sector

IT

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 4 0

930 950 590

0

10

20

30

40

50

60

70

80

90

100

110

120

10 000

18 000

0

2 000

14 000

4 000

6 000

8 000

12 000

16 000

20142010

6 170

2007

17 680

1 680

20182008 20152009 2011

4 620

2012 2013 2016 2017 2019

2 640

1 650

2 730

6 120

10 480 10 130

Million NOK, l.a.

Number, r.a.

PETROLEUM

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 4 1

480 500 300

910

0

5

10

15

20

25

30

35

40

45

50

55

60

500

0

1 000

4 500

3 000

1 500

2 000

2 500

6 500

8 000

4 000

5 000

5 500

7 000

3 500

6 000

7 500

2 620

3 210

2007

2 6403 010

20162009

1 190

2010 2011 2012 2013 2014 2015 2017 2018 2019

1 790

2 510

3 720

7 810

2008

Million NOK, l.a.

Number, r.a.

Figure 24: Initial and follow up investments in petroleum

BUSINESS RELATED SERVICES

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 4 2

370 470

180

860

320

620

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

3 500

3 000

1 500

0

500

2 500

1 000

2 000

4 000

1 610

201020092007 2008 2011 2012

1 400

2013 2014 2015 2016

1 550

2017 2018

1 100

2019

1 780

2 830

3 900

Million NOK, l.a.

Number, r.a.

Figure 25: Initial and follow up investments in business related services

Figure 26: Initial and follow up investments in cleantech

CLEANTECH

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 4 3

570

360430

530 530

120

200 200

120 100

0

5

10

15

20

25

30

35

40

45

50

55

100

1 100

0

1 200

400

300

200

1 300

1 500

600

500

1 400

700

1 000

800

900

20172009 2018201020082007 2011 2012 2013 2014 2015 2016 2019

1 440

1 210

1 480

Million NOK, l.a.

Number, r.a.

Buyout investments by segment (market statistics)

Figure 32: Buyout – investments in Norwegian entreprises by segment (million NOK)

BUYOUT INVESTMENTS BY SEGMENT

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 4 5

510

1 3002 880

2008

1 9001 630

2 130

2007

2 580

4 040

2 530

2 870

2017

2 280

2019

3 920

2012

2 360

16 010

3 340

2013

6 870

2009

3 8002 910

2010

2 6203 390

2011

2 350

2015

3 900

9 7702 040

2016

3 390

12 310

2014

2 550

6 5502 820 2 950

3 220

2 310

2018

1 900

Small cap

Medium cap

Large cap

• Small cap: Transaction value less than 500 million NOK

• Mid cap: Transaction value between 500 and 1 500 million NOK

• Large cap: Transaction value larger than 1 500 million NOK

• When looking at the different buyout segments we look exclusively at initial investments in Norwegian enterprises.

Figure 33: Buyout – number of investments in Norwegian entreprises by segment

BUYOUT INVESTMENTS BY SEGMENT

0 5 / 0 5 / 2 0 2 0M E N O N E C O N O M I C S 4 6

3 3 42

75

2 3 253

23

16

21 24

22

3

3

20

4 3

4

28

17

29

15

21

31

2720

2013

1

21

1

20092007 201420102008

26

1

2011

25

20172012 2015

36

2016

1

2018 2019

32

26

17

29

37

23

26

36

Small cap

Medium cap

Large cap

DIVESTMENTS

Norwegian PE firms’ divestments

in Norwegian and foreign enterprises

(Industry statistics)

4 9

Figure 27: Number of divestments by phase

NUMBER OF DIVESTMENTS IN NORWEGIAN AND FOREIGN ENTERPRISES (EXCL. WRITE OFFS) BY NORWEGIAN PE FIRMS

20

7 48

15 1623

27 29

7

2214

18

55

25

17

21

3528

25

26 21

23

14

13 7

6

5

7

13

11

4

11 4 7

45 7

2007 2011 2014 20182009 20122008 2010 2013 2015 2016

3

2017 2019

81

57

37

28

42

61

48

5957

34

39

32 32

Seed

Venture

Buyout

Figure 28: Number of industrial sales by phase

5 0

NUMBER OF INDUSTRIAL SALES OF NORWEGIAN AND FOREIGN ENTERPRISES BY NORWEGIAN PE FIRMS

52 3 2

6

1216 16

21

4

10

3

10

32

11 9 11

2517

1412

12

13

8

3

2

3 3

3 52

4

2

3

20112007 2008 2012

1

2009

1

20172010 2013

0

2014 2015 2016

1

2018

1

2019

Seed

Venture

Buyout

5 1

Figure 29: Number of divestments in by phase and divestment method

TYPE OF DIVESTMENT METHOD BY NORWEGIAN PE FIRMS - NUMBER OF DIVESTMENTS

10

4

21 1

1

3

1

1

3

2

2

0

Sale to private

individual/ family office

Sale to trade buyers Sale to another

private equity firm

Sale of quoted

equity post flotation

Management/Owner buy-back

14

9

5

2

10

0

Buyout

Seed

Venture

Divestments in Norwegian enterprises by Norwegian and

foreign PE firms(Market statistics)

5 3

Figure 30: Number of divestments in Norwegian enterprises by phase

NUMBER OF DIVESTMENTS IN NORWEGIAN ENTERPRISES BY NORWEGIAN AND FOREIGN PE FIRMS (EXCL. WRITE OFFS)

34

84

1013

18

37 36

24

13

3124 26

34

1112

17

2521

17 17

12

9

610

4

57

13

114

11

4

18

4

7

20182011 20132012

65

20172007 2008

28

23

2009 2010 2014

57

2015 2016

3

22

43

26

2019

72

24

40

49

43

54

40

Seed

Venture

Buyout

5 4

Figure 31: Number of divestments in Norwegian enterprises by phase and divestment method

TYPE OF DIVESTMENT - NUMBER OF NORWEGIAN COMPANIES DIVESTED

98

2

5

1

1

6

1

1

1

2

3

2

OtherSale to another

private equity firm

17

Sale to trade buyers Sale to private

individual/ family office

12

Management/Owner

buy-back

IPO - First divestment

following flotation

5

2

Seed

Buyout

Venture