eEquity, a growth investor in Nordic Internet companies has held the first closing of its latest fund, eEquity III, at EUR60 million, supported by existing and new European Institutional investors
eEquity III will build on the investment strategy implemented in eEquity II, providing growth capital to proven, fast growing and profitable Nordic Internet companies active within the internet retail and services sectors.
eEquity works actively with its portfolio companies to support them in becoming Nordic market leaders by accelerating growth organically and via selective add-on acquisitions. The firm's approach to value creation was most recently demonstrated by the exit of WhiteAway which generated returns in excess of 4.5 times invested capital without leverage. Value creation was achieved through launch across the Nordics, increased product assortment, private label and two add on acquisitions leading to an increase in revenues from DKK 150 million to more than one billion at exit after 3.5 years. IRR amounted to 76 per cent.
The portfolio in eEquity II has experienced an average annual growth rate of 60 per cent since date of investment until today. Royal Design (home decoration) has in three years gone from SEK 90 million to approximately five-times sales under profitability by expansion to more markets, increased product assortment and favourable add on acquisitions of Cervera franchise stores and Rum 21. Footway (shoes) has in four years gone from SEK3 million to approximately SEK280 million by building a strong consumer brand, increased product assortment and favorable add on acquisitions of Heppo, Brandos and RunForrest. Footway is also profitable.
Patrik Hedelin (pictured), Partner at eEquity, says: “We are very proud of reaching the first close of eEquity III with the support of both existing and new investors. Given our sector focus on online business models in general and internet retailing in particular it has proven very valuable for the entrepreneurs to access the comprehensive competence and expertise within eEquity and our group of companies. The closing of eEquity III provides us with a solid platform to further capitalize on our strong proprietary deal flow and enables us to continue delivering strong returns to our investors.”
Legal advisors to eEquity were O´Melveny & Myers LLP in London and Cederquist in Stockholm.
