Ferd Capital plays an active ownership role in its portfolio companies. In view of this, we will expect our investment to give us the formal right to influence the company's development.
We also attach importance to being one of the leading owners of our companies. This means that we hold a significant proportion of the shares or voting capital in each company. In situations where our ownership interest does not give us full control in our own right in a privately owned company, we will often have shareholder agreements that govern our collaboration with other leading owners in order to give Ferd a satisfactory degree of influence.
In the investment phase, we focus on developing a sound plan for value creation where we identify and quantify our objectives for the investment and how these can be achieved. In our experience, close and open dialogue with the company's management at the evaluation stage provides the best basis for ensuring that the transaction will be successful not only for Ferd and for any other investors that we are working with, but also for the company and for the seller.
We use the value creation plan to articulate our ownership agenda for long-term value creation, and the plan identifies the basis for our interaction with the company during the period of ownership.
In addition to ensuring that the company has the right board of directors and executive management to implement our ownership agenda, we also play an active role in adding value to the company through:
- Establishing incentive arrangements for the company’s senior management that are targeted at creating shareholder value.
- Participating in specific projects, for example:
- as part of the company's strategic process
- in connection with financing and capital structure
- in connection with acquisitions/mergers
- other specific operational projects.
- Carrying out regular strategic analysis to ensure that we have a good understanding of the company's challenges and opportunities.
- Carrying out improvement projects or turn-around processes when we see this as necessary.
- Facilitating access to the rest of Ferd’s extensive network, both within Ferd, in other Ferd-owned businesses and externally.
- Taking the senior role in exit processes to ensure successful implementation with the best possible outcome.
Ferd Capital also invests in listed companies. Through sizeable minority ownership stakes in selected companies, we seek to support value creation by being a visible and long-term shareholder.
The investment process is founded on Ferd Capital’s fundamentals analysis for the company, our value creation plan and our ownership agenda. The objective is to achieve a strong absolute return over the long term.
Ferd Capital’s investments in listed companies are principally strategic and long-term, but we also take into account the markets in which we operate on a continual basis. We combine thorough assessment of company-specific risk factors with our evaluation of how the financial markets are pricing a company and the expectations implicit in this.
The way in which we seek to execute our ownership agenda in listed companies varies significantly from company to company. In some cases, we will seek a place on a company’s board of directors or to take on other active roles, while in other cases we will primarily exercise our ownership through a company’s general assembly.
Ferd Special Investments is the most flexible of Ferd’s investment mandates. The mandate is intended to make use of Ferd’s competitive advantages by investing in special situations, individual companies or markets where the relationship between the return expected and the underlying level of risk is assessed to be attractive. Ferd Special Investments is not subject to any restrictions in respect of sectors or geographies, but the majority of investments will nonetheless belong to sectors and/or regions that we know well.
Ferd Special Investments can invest in all types of capital instrument and across the entire corporate capital structure, by preference in collaboration with other investors.
As a general rule, the investments in the Ferd Special Investments portfolio are financial, with ownership carried out through dialogue with a company’s board of directors and management team or through partners that play the role of an active owner in relation to the company in question.
An investment made under the Special Investments mandate may over time develop into an investment that is part of Ferd Capital’s private or listed company mandates.