London-based buyout firm Vision Capital has fifteen investments remaining in its Vision Capital Partners VII fund, following its partial exit from Nordax Group, Vision Capital CEO Julian Mash told Private Equity International. The IPO of the majority of its 80 percent stake in the Stockholm-based banking group represents its second exit from that fund.
Vision Capital acquired the Stockholm-based banking group for €105 million in 2010. The company was valued at around €540 million upon listing on Nasdaq Stockholm on 17 June.
Vision retains a 36.1 percent stake in the group. “It is the right time for Nordax to become a public company, but that doesn’t change our confidence in the business,” Mash said of the decision to retain a stake. VCP VII, a €680 million vehicle, began investing in 2009, according to PEI data. Mash noted that “the pace of exit is appropriate”.
The minimum lock-in for the remaining Nordax stake is one year. Mash described it as “material investment,” commenting that the IPO did not represent an exit from Scandinavia or financial services.
In total, the firm has made eight realisations in the past 12 months, of which two have been through IPOs. In May, Vision listed Barbados-based hotel chain Elegant Hotels Group on the London AIM market following a placement with institutional investors, as previously reported by Private Equity International. That investment was made through VCP IV, and Vision has retained a minority stake.
When asked whether IPOs were Vision Capital’s preferred exit route, Mash said: “Our view on exits is it’s what makes sense for the business, us and the shareholders.” He added that the IPO window has not always been open and the majority of the firm’s exits have been through trade sales.