Back to Investments Overview



November 2003

July 2010

3.8x / 29% IRR

Financial services

Stockholm, Sweden


Consumer loan company

< back to portfolio overview

Business at time of investment

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.

Investment rationale

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.

Value creation

  • Built out management team: Chairman, Head of Treasury, Head of Credit and Country Managers
  • Arranged stable financing: Completed the first ever asset-backed securitization in the Scandinavian region. Protective financing agreements ensured the business remained fully operational and highly profitable throughout the debt crisis of 2008-09.
  • Organic growth: Originated more than 75,000 accounts using advanced statistical models for customer acquisition and underwriting
  • Geographic expansion: Started up business in Norway, Finland and Denmark.

Company at exit

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.