3.8x / 29% IRR
Consumer loan company
Nordax was a start-up with a five-man management team with strong experience in the financial sector. Palamon was introduced by a boutique intermediary with an understanding of the Firm’s credit thesis.
As part of Palamon’s ongoing work on its consumer credit thesis, the Nordic region was identified as one offering significant development potential. The relative immaturity of the market enabled providers of credit to build a substantial customer base at reasonable cost and with good lending spreads. Moreover, social and structural factors have typically resulted in low levels of credit losses. Palamon identified a highly seasoned team, considered by many to be one of the region’s most experienced, and backed it to build Nordax into a leading Nordic consumer loans business which could ultimately represent an attractive acquisition candidate for domestic and especially, foreign financial institutions.
Nordax has been built from a start-up to the leading independent consumer loan company in the Nordic region, with €600 million of receivables.
In April in 2010, Nordax was sold to Vision Capital for €105 million, generating a 3.8x return on invested capital and a 29% IRR.
“The intimate collaboration between Palamon and the Nordax management team has been imperative for building Nordax in less than five years from a concept on a PowerPoint slide to a pan-Nordic consumer finance business with over €600 million in receivables. Palamon has been a perfect majority partner: supporting, challenging, guiding and assisting us in all major business decisions, while still retaining a strong respect for our autonomy.”
Morten Falch, CEO of Nordax Finans Stockholm, Sweden