Nordic Investment Partners
Welcome to Nordic Investment Partners
About Nordic Investment Partners
Nordic Investment Partners was founded in 2017 by Ole Søeberg. Ole has a broad and long experience in global equity markets since early 1980's. He has been in investment banking, Investor Relations in large corporates and Asset Management and in various leadership roles.
Nordic Investment Partners functions as a family office. However, being a long term investor there's time for other activities and the following advisory services are offered
Advisory and consultancy is provided within
- For investment funds and family offices; investment inspiration and asset allocation for wealth preservation and growth in liquid (listed) assets
- A new focused equity fund is under construction (see Investment Focus section for more)
- Advisory board member in AI Alpha Labs - AI driven investment selection and inspiration
- Advisory board in Bristlecone Pacific - investing in the longevity ecosystem
- Specifically in 2022; capital raising for plant based high-end protein production facilities in Europe and USA
- IR: Shareholder issues such as disclosure improvements, strategy clarification aimed towards specific investor segments. How to handle activism, ESG reporting and other issues BoD and daily mangement face on a regular basis
On this website you find
- Investment roadmap and quarterly updates
- Nordic Value Investor Conference - a conference for investment entusiast sharing investment ideas. More on Nordic Value section on this site
- Feel free to reach out via the contact box below
Monthly observation
What is the cost of capital when there's limited capital?
12 march 2023
Business start-ups and investors focusing on the early stage of a company's life have had a fantastic period over the past 10-15 years.
Driven and motivated by the succes of large US tech companies dominating the overall stock market performance in 2010's, thousands of new businesses and early investors emerged during the period.
In March 2020 when the world suddenly came to a halt due to Covid-19 pandemic, the policy makers responded with unprecedented liquidity and financial support. The liquidity boost provided overwhelming capital flows for lots of new companies. In the Nordic region the various 'growth exchanges' such as First North saw a tsunami of new companies and willing retail investors fuelling the party.
Fast forward to 2023 and fighting too high inflation is the modus operandi for central bankers. Money supply is declining, policy rates are at decades high and the period of easy money is over.
Silicon Valley Bank, a California banks with focus on start-ups and tech growth, has rolled over and it looks like a symptom for the end of easy money. Its failure raises the question that lot's of growth companies with negative cash flow need an answer to; how to finance continued growth and get to the point where the business is generating positive cash flow?
If a business has high likeliness of positive cash flow and self-funding in 2025 a bridgeloan or smaller equity issuance can solve the problem. But if you're not likely to see positive cash flow before 2030 then you face a number of issues; cost cutting, large and diluting issuance of new shares or very expensive loans with transfer of key assets in case you cant service the debt. This goes for many biotechs, e-commerce platforms and other high growth early stage companies-
The cost of capital hence moves very high compared to what you're used to (free money). The new paradigm will surprise some and if they can't get willing capital it could easily lead to loss of control of the business the started.
Contact
Nordic Investment Partners is owned by Ole Søeberg. More on LinkedIn
info@nordic-investment-partners.com
Fell free to reach out via the boxes below: