3 March 2004
Palamon Capital Partners, L.P. agrees to invest €27 million in Nordax Finans AB

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Palamon Capital Partners announced today that it has invested €13 million (SEK120 million) in Stockholm-based Nordax Finans AB, completing the first phase of its agreement to invest a total of €27 million (SEK250 million). Nordax, a newly created entity, will offer medium-term unsecured loans to consumers, initially in Sweden, but with the intention of expanding throughout the Nordic region. The investment follows the formal granting of an operating licence to the company by the Swedish regulator, Finansinspektionen. The management team are investing alongside Palamon and will hold 20% of the company’s equity.

The general-purpose consumer credit market in Sweden, although relatively immature, is estimated to be around €10 billion in size, of which a little over half is accounted for by personal loans. Within this market, demand for medium-term, unsecured loans is growing strongly, at around 17% per annum.

The management team, led by Peter Brannerydh, consists of five individuals who have collectively built and run the two leading unsecured consumer loan businesses in the region. Christian A. Beck, a highly experienced entrepreneur who has built a number of businesses in Scandinavia, has joined the team as Chairman.

Andrew Hawkins, a partner at Palamon, commented: “This is a very exciting opportunity for Palamon, and in line with our investment strategy. The team we are backing is exceptional and we are confident of creating a leading force in Nordic consumer finance in partnership with them.” Erik Ferm, also a Palamon partner, added: “This marks our second, substantial investment in Scandinavia, and is indicative of our commitment to the region and our ability to transact there. As a pan-European investor, we are attracted by the combination of fundamentally strong Scandinavian economies and relatively immature consumer credit markets.”

Peter Brannerydh of Nordax expressed his enthusiasm for working with Palamon: “Palamon’s rapid decision-making process, financial strength and impressive knowledge of the consumer finance industry made partnering with them the obvious choice. Additionally, their willingness to commit to funding us through all development stages is unusual and will ensure financial stability and clarity as we build our business.”

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