In 2018, Nordic Capital won Private Equity International’s Operational Excellence Award in the EMEA Large Cap Award category for the fourth time. The business credited for this success was Bambora, a payments powerhouse created by Nordic Capital in 2014, which exemplifies how we create value and how our sector teams use focused strategies and operational tools that facilitate truly transformational effects.
Executing on the Value Creation Plan
A key element of on-boarding of new portfolio companies is to agree on a structural plan for execution of the value creation plan. This is a standard Nordic Capital procedure to make sure the strategy is well anchored and to formalise the way the operations team will support the portfolio company during our ownership period. The Operations Team includes specialists in commercial excellence, pricing, cost efficiency, people and performance, digitalisation and procurement.
Throughout the execution of the value creation plan, the Operations Team supports the portfolio companies in a number of ways. Key areas of focus include Commercial Excellence resulting in sales growth improvement in the majority of portfolio companies and Post-Merger Implementation. In the case of the mergers of Itiviti & Ullink and Lindorff & Intrum, the Nordic Capital Operations Team took a project lead role to make sure the companies were fully prepared at the point of merger and supported the full roll-out of the integration.
In addition to dedicated work in each portfolio company, Ownership Excellence also encompasses initiatives that benefit the entire portfolio, such as the procurement initiative, NCPO.
Considerable work has also gone into cross-portfolio digitalisation, which includes an important sub-work stream for IT near-shoring project that makes first class resources available to portfolio companies at world-class costs. For example, several of the Tech & Payment companies are involved in setting up an “NC Development/Tech centre” that will source skilled tech developers within the European Union.
Our Sector Heads has many years of PE experience developing portfolio companies and it is this depth of experience that is a clear contributor to Nordic Capital’s ability to source, manage and position companies for optimal exits.
Each sector team maintains a “Playbook” that formalises the way Nordic Capital approaches and manages its investments in core sectors and enables us to keep ahead of the market. Their overriding mission is to maintain a world class approach to investment, ownership and exit, and to be the partner of choice for management teams in growth-focused selected sub-sectors.
Building on Nordic Capital’s extensive experience and know-how in the various sectors, the playbooks seek to document what world-class looks like. They enable us to systemise our sector knowledge, for example, identifying strengths and weaknesses and areas where ownership initiatives should be focused to best create value. They include approx. 20 areas for evaluating potential investments during the sourcing phase (where to play, likes and dislikes) and outline optimal ways to drive the ownership agenda during the holding period, including best practice for exit preparation.
The sector teams also work closely with portfolio company management, functional experts from our in-house operations team, as well as advisors and, where applicable, operating Chairmen to achieve the goals set up for the individual company.