Swedish Growth Fund is a Swedish fund focusing on investments in innovative companies with strong growth potential. With roots in Lundberg, Malmö and Copenhagen region is the right fund located in Scandinavia – in the middle of a region that houses a large number of life science and IT companies with good support structures, not least by Lund University.
However, there is a critical shortage, in terms of the lack of a structure that can help the companies in question on when the public “early financing” is no longer available. Sometimes the companies choose to be listed on the market instead, which can be a difficult transition for the company that have focused on research and growth. It often occurs a situation where the continued funding of the business is in a critical stage. The Fund’s mission is that in a structured and accurate way identify and invest in companies which have a need for capital in preparation for a larger capitalization/listing within 6-18 months, primarily those in Sweden well-established and growing small cap markets.
What gives Swedish Growth Fund is uniquely positioned methodology to minimize investment risk. When investing in companies that intend to within 6-18 months apply for listing it normally occurs a timing window where the investment risk is reduced. Further explained, this as a possible listing often planned before the current company is entering a new phase of growth – which, for example, could mean that the company after the listing, plan to initiate further studies, or to expand into new markets. During this period, decreases investment risk thereby partly because the company declared its intention to be noted, as well as the next phase of development has not yet begun. That means investors have a good picture of how the company will be valued in a note. After the target company for the investment is well noted, the Fund’s primary mission ended and the fund will then – under controlled conditions – sell its holdings in the target company that are listed. This is normally occurs within 3-9 months from the time of listing.
The fund will be a strong support to target companies and not only help with financing but also with advice and access to the Fund’s network, such as competences to the board and management. The Fund intends to have a stake in the company in question, all the way from preparation for capitalization/note by note, and a time after the listing. The fund has a strong, competent and committed board of directors and investment committee and we are confident that our combined experience will be of benefit in the market segment.
The fund aims to carry out repetitive short-term investments with limited holdings in each investment, which should go hand in hand with the Fund’s mission to support young growth companies in a financial critical stage. By helping companies to listing, the Fund intends to reduce the financial risk for the target companies with a sustained positive return for the Fund.