Nordic Private Equity Market Update Q1'25

Quarterly insights: Navigating the Nordic private equity landscape

Explore the Quarterly Nordic Private Equity Market update, where we capture the essence of the Nordic Private Equity market's evolution over the past quarter. This report provides analysis of market trends, transactions, and insights. Benefit from ��㣨Leyu��'s nuanced perspectives and strategic insights, designed to help you navigate the region's private equity landscape with clarity and assurance.

Comments on the Nordic PE market development

LTM buyout deal volume increased for the first time since Q3/��23, while LTM VC deal volume continued to decline.

VC deal volume reached its lowest quarterly level during the reporting period (Q4/��21-Q4/��24).

Buyout deal activity increased substantially in NO, reaching the second-highest quarterly volume during the reporting period. SE buyout deal volume increased 18% on a QoQ basis after a slow Q3/��24. FI and DK buyout deal volume decreased, with DK reaching its lowest quarterly volume during the reporting period.

Buyout deal volume increased in all key sectors. The Tech sector experienced the most significant increases as deal volume grew by 27 deals / 35% compared to Q3/��24.

PE fundraising was active in Q4/��24, as five buyout funds, with a combined value of ~��3.3bn, and two VC funds, with a combined value of ~��240m were closed. Six new buyout and three new VC funds were opened in the Nordics during Q4/��24.

Implications on the outlook for PEs

Muted IPO market continues

The IPO window remains largely shut across the Nordics due to persistent market volatility and elevated interest rates, limiting exit opportunities and encouraging longer asset hold times.
Buyout activity shows divergence

Buyout activity trends are uneven across the Nordics. DK shows resilience with increased deal activity, while the other countries face headwinds.
Fundraising environment remains challenging

LPs continue to exercise caution amid a global capital overhang and stretched allocation limits.
Shift toward resilient and stable sectors

Investors are gravitating toward sectors with more stable cash flows and lower economic sensitivity, while interest in more cyclical or discretionary segments remains subdued amid ongoing macro uncertainty.