Investment Strategy

Proventus pursues a dual strategy outside Proventus Capital Partners.

One leg is what may be described as hedge-fund strategies. This is an opportunistic activity based on an international outlook and essentially macro-oriented, looking for fundamental mis-pricings in capital markets. Such strategies include taking currency and stock market index positions, potentially speculating in upturns or downturns in the capital markets and against what we may view as unsustainable market situations.

The other leg of the dual strategy, which is more search- and project-oriented, is to invest in individual businesses/assets/companies, broadly described as special situations. This activity has a more Swedish/Nordic focus, but is not limited to the Nordic region. Such projects are normally more long-term and target relatively less liquid assets than the hedge-fund strategies and comprise the phases of origination, valuation, investing, ownership management, and divesting.

Special situations

Proventus is in a process of gradually diversifying assets and risk and has significant liquid assets to invest in special situations, alone or together with partners, should attractive opportunities arise. Proventus has an opportunistic and selective approach, with flexibility across both asset/business and financing categories.

Investment criterias

  • Profitable and established businesses with development potential and strong market position and competitive advantage
  • Scope includes a wide variety of industries, including real estate (business/products/technology should be possible for us to understand and value; not merely a “lottery ticket”)
  • Cautious attitude to risk (risk should be sufficiently compensated for); generally lower-risk positions in medium-risk environments
  • Development phase may vary from relatively early-phase to more mature businesses
  • Refinancing of existing capital and providing/facilitating ownership change or new capital to fund expansion projects
  • Investments in the target’s capital structure may vary between private loans, bonds, shares and hybrid securities (listed or unlisted)
  • Liquidity-conscious attitude but with flexible investment horizon (may vary considerably between projects)
  • Ownership level and degree of control may vary; large minority positions where Proventus is one of a few large investors are normally favored
  • Non-competition with Proventus Capital Partners to be observed

Proventus has a positive and flexible attitude to co-investments and partnerships, which may include industry specialists, entrepreneurs, family offices and other industrial and relatively long-term financial investors. We thus encourage and welcome ideas and potential deal proposals by both principals and intermediaries in line with the strategy and criteria outlined above.