Building better businesses
Altor is a family of investment funds focused on investing in and developing medium sized companies. We want to create enduring value and make a real difference as a valuable partner for owners and managers in building world class companies.
We work together with an advisory team with extensive international experience in fields such as private equity, consulting, investment banking and various industrial sectors.
An investment fund with a longer horizon
Altor is a family of investment funds focused on developing medium sized companies to their full potential. Altor has a track-record of consistently generating very strong returns.
We want to create enduring value and make a real difference as a valuable partner for founders and management in building world class companies. Altor has invested in ~70 companies since inception, with numerous add-on acquisitions. The horizon on our investments is longer than many other funds. Our strong belief in sustainability aligns very well with this long horizon.
Growing great companies – the people behind it
To support the companies and its management we have investment teams with extensive experience from similar sector investments at Altor. All Altor hires have solid international experience in fields such as consulting, investment banking and a range of industrial sectors. The strength and depth of our team allows us to move quickly and boldly into new attractive opportunities that occur.
We make significant investment in the resources and expertise to drive strategic and operational transformation in these companies. Further, we have a wide network of seasoned senior advisors with significant operating experience, who can support as Board members or as advisors to help drive lasting impact in the companies. These advisors have backgrounds from some of the most reputable companies in our markets, with skills ranging from the industrial sector to our new Tech Advisory Board.
We also have a set of operational specialists in fields such as Business Transformation, Procurement, Sustainability, Talent/Leadership and Communications to support the businesses, in order to grow truly great companies.
Our investment strategy since inception, in 2003, is selective, flexible and contrarian. It is based on identifying and realizing sustainable performance improvements, many times in complex situations with numerous value creation levers, such as revenue growth, margin expansion and capital efficiency. We invest long-term in companies where we see a potential for the company to double the operating profit in a five-year perspective.
A trademark of Altor has been to partner up with previous owners, as we believe bridging their experience is very valuable. A continued partnership also enables the incumbent owner to participate in the upside of a continued value creation. Further, Altor has a wide experience of strategic partnerships with financial investors and corporates providing sector insights and expertise.
We have been given a flexible mandate from our investors which allows us to selectively invest in public companies and also in growth cases through minority shareholdings and partnerships. In these investments, we have been able to successfully apply our governance model of a very active ownership model.
How we work
Our success is built on a highly rigorous approach utilizing deep insights about the portfolio company and the industry it operates in.
Altor evaluates an investment opportunity based on industry attractiveness, the company’s market position and its value creation potential. Throughout the years, the investment professionals have gained deep insights and significant experience within several specific sectors, such as, industrial, business services, consumer/retail, tech, healthcare and financial services. This sector expertise enables us to identify similar business opportunities, both in sourcing new investments and as an owner.
Immediately after completing an investment, we appoint external Board members with appropriate backgrounds and experiences that match our high ambitions. Together with the management team we develop the strategic agenda and the operating targets benchmarked against companies that are best in class, worldwide.
A detailed roadmap is developed during an intense period where facts are collected to establish a common perspective on competitive position, current performance and future initiatives. We are allies in building a truly world class business.
We have seen great companies owned by Altor having large remaining value creation potential after a number of years. To capture this, we have a longer hold than many other funds, our three latest funds have a 15-year horizon.
The funds and its investors
Leading European and US institutional investors have committed a total of EUR 8.3 billion to Altor in five funds.
The Altor funds have secured strong support from leading international institutional investors who share Altor’s long-term perspective on value creation. They include high quality Nordic institutions, US university endowments, pension funds, charitable foundations and other leading international institutions.
More than 70% of the committed capital comes from investors outside the Nordic countries and DACH.
Altor Fund Manager AB, is the main operating entity for Altor Fund IV and Altor Fund V, which has its legal domicile in Sweden and is regulated as an authorized manager of alternative investment funds under the Alternative Investment Fund Managers Directive. Altor Equity Partners is the investment advisor to the three first funds, which are domiciled in Jersey.
Altor 2003 Fund GP Limited, Altor Fund II GP Limited and Altor Fund III GP Limited have a Board consisting of Chairman Hans Henrik Klouman, members are Heidi Birtwistle, John Boothman and Brendan McMahon. In Altor Fund Manager AB, Hans Henrik Klouman is Chairman and Board members are Cecilia Lager, Eivind Kolding and Christian Salamon.
The investment advisors operate out of offices in Copenhagen, Helsinki, Oslo, Stockholm and Zurich, consisting of roughly 40 dedicated investment professionals.
Naturally, Altor also has a number of policies as part of its Governance Model. Among those, some worth noting are policies for:
- Internal Code of Conduct
- Risk management
- Internal audit
- Conflicts of interest
- AML och CTF
- Personal account dealings and market abuse