NOVEMBER 01 2024
Technology and payments are undergoing rapid shifts, creating attractive investment opportunities, says Nordic Capital’s Mohit Agnihotri and Fredrik Näslund, in a keynote interview with Private Equity International.
Innovation cycles are shortening how companies develop cloud-based software and AI tools for new and often quite specific applications. At the same time, incumbent businesses are having to move fast to keep up with more agile newer market entrants and ever-increasing regulatory demands for record keeping and reporting.
Nowhere is this more apparent than in highly regulated industries, such as financial services or healthcare, where legacy systems have historically slowed the pace of progress, and in payments, which continue to evolve rapidly, according to Fredrik Näslund, Head of Technology & Payments, and Mohit Agnihotri, Partner, focusing on technology investments at Nordic Capital.
The technology sector is vast and continuously expanding, requiring a strategic focus on segments with the greatest growth potential. Nordic Capital prioritises growth investments in mission-critical markets, such as vertical software and payments, where underlying secular growth is robust, and end-market cyclicality is less pronounced. Key trends driving these opportunities include the integration of payments with software, accelerating workflow automation, and increasing regulatory demands for precise record-keeping and reporting.
Read the full interview in the enclosed pdf.
