Summa Equity, a private markets firm created “to invest in companies that address some of our global challenges”, is in expansion mode. The Nordic firm, which is midway through investing its second fund, is about to open up its first offices outside its home region.
A German office will be up and running in Munich before the end of this year, managing partner Reynir Indahl told New Private Markets.
The firm currently has offices in Stockholm and Oslo, but draws on a network of “thematic experts” based around the world, according to Indahl. One of its thematic experts, technology veteran Birger Steen, is based in Germany and the firm is currently in the process of hiring a full investment team in the country.
The firm has made a total of 10 investments in Nordic-headquartered companies, and prior to 2021 had made only three international acquisitions: in Sengenics (Singapore), Logex (Netherlands) and Milarex (Poland). It had also made a number of bolt-on acquisitions outside of its home region.
This year, the company has accelerated its global expansion and has announced three deals in July. It invested in myneva in Germany, a software provider to the social care sector with a global client base. It has also announced two life sciences investments in the US: Axion BioSystems and G-CON.
A US office is being planned, Indahl said, and is likely to be operational during the lifetime of the current fund.
Close to half of the firm’s €650 million 2019 second fund will be deployed beyond the Nordics, Indahl told New Private Markets.
Despite the shift towards remote working – accelerated by the global pandemic – Indahl said the firm needs to be close to its investments. “We shouldn’t underestimate the importance of physical contact and building relationships with our portfolio companies,” he said.
Lower-mid-market firm Summa could be described as a “native” of private markets sustainability, having been established in 2016 to invest in UN SDG-aligned investments that fit within three broad themes: resource efficiency, changing demographics and tech-enabled businesses. In the firm’s most recent annual report, it trialled impact weighted accounting.