Comtax

In 2000, two Swedish private individuals agreed to acquire Comtax, a Swedish software company that develops and markets an international tax optimization program aimed at multinational companies. The company had a unique product with high cost savings potential for clients, and the new shareholders believed that increased investments in marketing and product development could yield significant returns. Proventus backed the new shareholders through a package of convertible loan and equity. The down-side protection of the investment is provided by the shareholders’ agreement stipulating inter alia Proventus’ board representation.

Proventus has in the past few years moved to meet what we believe to be an important, unfilled need among mid-sized European companies that are in expansion or restructuring, but are unable to acquire bank financing and unwilling to dilute current ownership to fund such initiatives. In August 2009, Proventus laid the ground for Proventus Capital Partners, a co-investment vehicle through which Proventus invests its own and external funds in public corporate bonds, leveraged loans and private corporate loans to mid-sized companies in need for growth and restructuring capital. We see this as a major investment opportunity, targeting capital needs that cannot currently be financed because of restrictive loan policies of banks and others. We think there is a significant need for a more active market of this kind and aim to take part in developing it.