Earlier this year, the supervisory board of SpareBank 1 Nord-Norge decided to set up a foundation with the purpose of investing in northern Norwegian companies. From the beginning, the group has Samfunnsløftet, which supplies voluntary teams and associations with much-needed money. A corresponding boost is now being made for business in the north.
The new foundation has been named the Foundation for Northern Norway, and the first step in establishing the foundation has been to get a board in place. It is now clear who will lead the effort:
Joachim Høegh-Kohn (Chairman): Høegh-Krohn is manager and chairman of Turnstone Private Equity. He was previously CEO of Argentum and DNB Kapitalforvaltning, and has extensive experience from board work. Høegh-Krohn has a doctorate in economics.
Line Ellingsen (board member): Managing director of Ellingsen Seafood AS. Ellingsen is a fisheries and civil economist from Nord University, and has extensive board experience.
Håkon H. Jensen (board member): Managing partner in Bertel O. Steen kapital. Former director of Investinor. Jensen has extensive experience from board work, and has an MSc in Finance from the Norwegian School of Economics.
Christina P. Hagen (board member): Deputy manager/CFO at Klare Finans AS. Former financial manager at both Husbanken and Nordlandsbanken. Board member of the Energy Companies Joint Pension Fund. Hagen is an economist from Nord University.
Erlend Sundstrøm (board member): CEO Odd Berg AS. Former Investment director at Reiten & Co, and DNB NOR. Chairman of ECO Management. Sundstrøm is a civil economist from Nord University, and an authorized stockbroker from BI School of Economics
Caroline B. Kjeksli (deputy member): Associate partner in McKinsey.
Cilia Holmes Indahl (deputy member): Leads the EQT Foundation.
– I am incredibly satisfied with the board we have now put in place. These are very competent people, and also tick off parameters such as gender balance and geography, says SpareBank 1 Nord-Norges CEO Hanne Karoline Kræmer.
It is the board of SpareBank 1 Nord-Norge that has appointed the members of the Stiftelsen for Nord-Norge board. According to Kræmer, that will only happen this one time.
– At the next crossroads, there will be a separate control body that will decide how the board will be put together. That is not a task that we at SpareBank 1 Nord-Norge should have. The reason for this is the need for arm’s length distance between the group and this venture. But we must of course take responsibility for getting the structures in place in the first phase, so that the work can get started, says the CEO.
This is the purpose of the Foundation for Northern Norway
The foundation is to be an available source of capital for the general business in the region, and it is based on an index fund model. Both breadth and diversification that match the business population in Northern Norway will be emphasized. The main focus is on limited companies with a turnover of over NOK 10 million, and which have their business address and head office in Northern Norway.
The foundation must be a minority investor, and the holdings must be below the level of negative control (5-33 per cent). The investment horizon is perpetual, but you must be able to realize ownership positions together with other shareholders when desired.
The following quality requirements are used as a basis when it comes to the companies that can be invested in:
- Companies with a minimum of three years of history. The pre-commercial phase is thus not part of the investment universe.
- Booked and value-adjusted equity share must be over 10 per cent.
- The company must have positive EBITDA in total over the last three years, and an expectation of positive future EBITDA.
- You must have acceptable debt servicing ability.
- Profitability among the best three quartiles in its industry.
- ESG requirements will be made in line with what the laws and regulations specify.
- Audit requirements and requirements for shareholders’ agreements are also a requirement.
The foundation will have its head office in Tromsø. The board is now starting to hire employees to manage the venture.
