Swedish pension fund AMF, bank SEB and foundation-backed asset manager FAM have launched an SEK3.5bn investment company to back Swedish businesses struggling to make it through the coronavirus crisis.
Sindre Invest will look to support medium-sized Swedish companies that were successful before the crisis, and that are expected to be so again once the economy has returned to a more normal situation.
It expects to invest mainly in unlisted private and family-owned companies that do not have access to the stock market, targeting companies with at least 250 employees and annual sales of more than SEK300m.
Sindre will acquire minority positions, with the express goal that the existing owners will be able to buy out Sindre’s ownership stake after the crisis.
Investments will have a term of three to five years, and Sindre will operate for a total of ten years, a statement from the trio said.
AMF will invest SEK2bn in Sindre and SEB SEK1bn, of which SEB Pension & Försäkring will provide SEK100m.
FAM and the three largest Wallenberg Foundations will together invest SEK500m, of which FAM will provide SEK400m.
Jan Amethier, who is leaving SEB to serve as CEO of the new, standalone company, said, “The situation we are encountering is that many companies are trying to get through this with the help of government support programmes and debt relief.
“This will work for a period of time, but our assessment is that many companies will need more venture capital to survive and weather the crisis. The aim of Sindre is to form a bridge from now to a better future.”
AMF chief exec Johan Sidenmaek added, “I am very happy that we together with like-minded partners can gear up in an impactful way and broaden our work with investing in vital Swedish companies that are in need of capital to make it through the economic crisis we are currently in.
“We believe it is good for our savers, good for the companies, and also good for Sweden as a whole.”
Copyright © 2020 AltAssets
