PRIVATE INVESTMENT HOUSE
Specializing in Private Equity & Commercial Real Estate Investment
Norrsken is a specialist private investment house, a multi-family office focused on delivering to its members' real value in the markets we operate. Norrsken invests together with institutional investors in private equity and commercial real estate across jurisdictions with a primary focus on Europe including CIS countries, Africa and the Middle East. On commercial real estate, we focus on multifamily, hospitality and alternative real estate through joint venture partnerships including local operators. Norrsken believes in partnering with local experienced operators to achieve a competitive advantage in the marketplace. At Norrsken we recognise that real estate is a local business. This offers the opportunity to create value from the unique attributes of buildings and the needs of those that use them. Our strategy seeks to target the middle market, transitional assets that require an infusion of capital and operational expertise to enhance value. Our investment objective is to create a core-like real estate by acquiring the raw materials of broken or mismanaged assets below replacement cost and aggressively executing value-add strategies to create cash flow durability. We believe this strategy of focusing on the cost basis for assets facing limited appetite from capital sources and actively executing a business plan to produce an asset that will be in high demand will deliver the best possible risk-adjusted return.
Our second key area of interest is private equity which forms a significant part of Norrsken investments and our members enjoy an exclusive and wide-ranging deal-flow of companies with compelling growth prospects, whether they are immediately ahead or may be achievable after addressing various operating or financial challenges. Once engaged, we work together with management to design a strategy, capital structure and incentives that will encourage strong performance. We typically invest in private companies due to advantages in our ability to fully dialogue with management and sellers and because we are able to plan for and execute long-term improvement strategies after closing a transaction. In addition, at Norrsken we utilise our expertise and wide network to identify special situations for companies that present unusual operating and strategic challenges. Our business analysis skills and a broad network of resources make us well-suited to assist a company to achieve its potential. Such challenges and opportunities might include, for example, Companies experiencing stress from financial or operating issues, growth capital for new initiatives, international expansion, minority investments and joint ventures with strategic operating partners.
Norrsken investments are guided by the objectives of our members and since inception Norrsken follows the principle of aligning interests with our partners. We have benefited significantly from this over the years and have embedded this approach in our strategy. Namely we are investors and only select opportunities we would invest in ourselves. That means actively managing and identifying aspects of each of investments where returns can be enhanced, protected and the risk profile of the asset minimised. Our believe is together we are stronger, together we can make a significant difference by taking an individualised and tailored approach to each investment to maximise returns.
We think success is not merely buying or selling but identifying opportunities and creating real value. You have to connect the dots between opportunities and execution, between market, capital and assets, between equity partners, vendors and service providers. You need a holistic approach together with a meticulous approach to due diligence, inexhaustible reserves of patience and the ability to take swift and decisive action at the key moments. Investing is the business of constant interaction, understanding and addressing the needs, concerns and ambitions of all stakeholders and demands good communication, deep insight, empathy and firm conviction. We prefer a hands-on approach coupled with the bravery to take inspired decisions when it matters.
In real estate and private equity, there are many theories, a multitude of models, a wealth of analysis and a myriad of opinions. But finding value is not simply about the numbers. Spreadsheets, calculators and pie charts complete only part of the puzzle and the trick is to not succumb to ‘analysis paralysis’. It is important that judgements are honed by understanding not just the figures but the overall picture to deliver real value. In the end, as Mahatma Gandhi once said: “The future depends on what you do today”. To us winning means you have to be ready today for those opportunities that allow you to win tomorrow.
Norrsken is the Swedish name for the effect known as the aurora borealis (or the northern lights), named after the Roman goddess of dawn, Aurora, and the Greek name for the north wind, Boreas, by the Italian astronomer Galileo Galilei in 1619. Norrsken was formed as a special vehicle for entrepreneurial Scandinavian families interested in identifying opportunities and building valuable portfolios outside Scandinavia. Norrsken focuses on commercial real estate and private equity opportunities with a clear value proposition. Since its inception, Norrsken has served the interests of its members and the interests of our international institutional investor partners. As an investor, our success is firmly rooted in aligning our firm’s interests with those of our members, partners and joint venture partnerships, as well as our commitment to capturing the right opportunities in an ever-changing global market.