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Earlier in the year we presented you with the results of the latest in a series of annual surveys aimed at gauging investor confidence in the Nordic venture capital and private equity markets.
To recap, representatives of 50 Nordic GPs were contacted and interviewed on a fully anonymous basis during the first quarter of 2016. It is also important to note that the survey specifically targeted senior decision makers: the vast majority of respondents were partner level or above in their respective organisations, with a good number of CEOs, Managing Partners and Chief Investment Officers included within the sample.
We caught up with David Aversten, Managing Parter of Delphi at the Nordic Private Equity Froum to get his analysis of the results and to find out where he sees the the market heading over the next 6-12 months.
unquote": David Aversten - What's the market feeling? And whats the outlook looking like in the Nordics for the rest of this year?
I think there's a positive market sentiment. If you look back to 2015, it was a little bit of a mixed bag. We can see from the market outlook from 2015 that there was a lot of public market IPOs for private equity backed companies, but lower deal flow. If we look at the market outlook from the 2016 survey its evident that at least 50% of the respondents feel as though there will be more deal flow in the Nordic region. So that's positive!
What did you think was the most interesting finding from the survey?
One of the interesting things [I saw], was that the sectors people are looking to invest [in] changes over the years. But this year we have seen a big shift towards technology being the most interesting sector. Its particularly interesting because there is a lot of Venture capital (VC) discussions and VC activity is back in the market.
Given the respondents believe there's going to be improved deal flow. Do you think the region is in a position to deliver these deals?
Currently I do, yes. There's a lot of startups springing up, and there has been for a long time. So there are a lot of companies becoming more mature and there is a lot of innovative power in the Scandinavian region. Another reason is we have quite stable economics and very stable private equity in play.
That's all very positive! What is worrying the private equity community in the Nordics?
Just looking at the survey, its evident that expectations for IR are coming down. Although at least the majority feels that the Nordic region is likely to outperform the rest of Europe.
We hoped you enjoyed the interview, if you want to read the full report you can download it here.