Welcome to Industri Udvikling's website. In the following you will find various information about our company and our way of thinking. Please do not hesitate to contact us if you would like further details about any of the information set out below.
Gothersgade 175, 2nd floor
DK-1123 Copenhagen K, Denmark
Telephone: +45 3336 8999
If you would like to get in touch with specific employees at Industri Udvikling, please look under "Kontakt" in the main menu.
Under the heading "Downloads" under the "Om IU" menu, you can download a presentation brochure and annual reports for Industri Udvikling in Danish. You will also find an English version from 2014/15.
Mission / Investment criteria
Industri Udvikling was formed in 1994 with the object of setting up a private equity company that was to invest in small and medium-sized Danish manufacturing companies.
Industri Udvikling invests primarily in Danish manufacturing companies with sales from DKK 75 million up to DKK 500 million, with the aim of developing the companies over a number of years.
Industri Udvikling participates in the portfolio companies' development by exercising active co-ownership through Board of Directors meetings and regular contact with management.
Industri Udvikling is always a minority shareholder, initially.
Industri Udvikling's (initial) investment will typically be in the region of DKK 10-50 million, in return for which Industri Udvikling gains a 25-50% stake. Industri Udvikling may invest in partnership with other investors if the funds required exceed the range referred to above.
We look after companies with:
Industri Udvikling's typical cases are:
Change in ownership (Generation/MBO/MBI)
Part-sale before full exit together with IU
Industri Udvikling is not tied to specific industry sectors, but invests broadly within manufacturing companies. The portfolio features both companies with their own product(s) and companies that operate purely as subsuppliers. Industri Udvikling prefers each portfolio company to either have or be able to achieve a strong position in its sector.
Industri Udvikling invests exclusively in companies with Danish roots.
Form of investment
Industri Udvikling invests by contributing share capital and/or providing subordinated loans combined with a right to subscribe for shares. Industri Udvikling acts with an owner's rights, regardless of whether the investment is made in the form of a subordinated loan or share capital. In several cases subordinated loans are used as a supplement to share capital, either to reduce the amount to be contributed as share capital or to optimise the ownership structure.
Subordinated loans combined with a right to subscribe for shares are often a constructive and fruitful form of investment. Subordinated loans can act as leverage for the often difficult valuation discussion when subordinated loans are used as bridge for the subscription price for shares when it is tied to the actual future performance.
Industri Udvikling wants to be represented on the Board of Directors of its portfolio companies, also where the investment is made in the form of a subordinated loan rather than formal co-ownership.
The composition of the Board of Directors is tailored to the individual company. Industri Udvikling prefers the chairman of the Board of Directors to be an experienced person with a CEO background, combined with time to be the relevant sparring partner for the Executive Board. Industri Udvikling always participates directly in the Board of Directors' work.
Industri Udvikling's working method
Each year, Industri Udvikling receives many enquiries that present investment opportunities. Some are carefully prepared investment prospects, others are presented as ideas in the course of a telephone call.
Industri Udvikling visits between 40 and 60 companies a year. The company introduces itself, and its situation and potential are discussed. This forms the basis for a discussion as to whether the parties can find common ground for the further development of the company.
Industri Udvikling rarely carries out a formal due diligence prior to making an investment. Instead, Industri Udvikling undertakes a general review, assessment and discussion of the company, its history and its potential. Areas that are particularly important and/or involve particular risk are naturally subject to more in-depth research.
The contract documentation is prepared by lawyers. The assessment of the company and its potential is carried out in-house, as it is during this close dialogue that Industri Udvikling gets to know the company.
Industri Udvikling's investments
Since its establishment in 1994, Industri Udvikling has invested in a total of 139 companies. During this period, Industri Udvikling has been one of the principal investors within its segment. Also during this period, Industri Udvikling has established a well-functioning team with extensive knowledge within both the investments and the subsequent development of the companies.
Following divestments and losses, Industri Udvikling today has a portfolio of 22 companies. The portfolio value stood at DKK 836,3 million at 31 December 2020.
Legally, Industri Udvikling is organised into the entities Industri Udvikling II K/S, Industri Udvikling III K/S, Industri Udvikling IV K/S, and latest from August 1st 2019 Industri Udvikling V K/S. Industri Udvikling A/S is no longer part of Industri Udvikling and have changed name in 2020.
Setting the strategic goal and exits
A shared ambition and strategy is developed by management in collaboration with existing and new owners, including a plan for when to initiate a full sale of the commonly-owned company.
Usually, the plan is tentatively made in the early stages of discussions between Industri Udvikling and the current owner(s) concerning the potential investment and future strategic focus, and well before closing.
Generally, Industri Udvikling is looking to exit when the portfolio company has reached a new stage of its development or there is a need for other competencies to ensure the optimal future development of the company.
In most cases, exits are initiated either by unsolicited interest from potential buyers or, in some cases, through a structured process once the planned time for an exit is approaching.
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