Investor, the Swedish investment group, has written down the value of its private equity portfolio by SKr2.8bn (E303m) over the course of 2001. In 2000, Investor had ended the year with a downward adjustment of SKr1.2bn.
The group’s net asset value dropped SKr2.7bn to a total of SKr12.4bn for the year. It booked Skr524m of gains, falling dramatically short of the Skr3bn it generated in 2000. New investments decreased by Skr2.5bn for the year.
The firm cited falling public market valuations and a number of its portfolio companies not performing according to plan as the reasons for the drop, but also pointed to the importance of maintaining a long-term outlook on the new investment portfolio. It also said it expected to pick up its pace of investment and find exit opportunities in 2002.
Net asset value for the whole group fell from Skr144bn in 2000 to Skr118bn in 2001. This drop was attributed to the decline in value of its quoted stocks, in particular Ericsson and ABB.