Jan Johan Kuhl, Managing Partner at Polaris Private Equity, on the attractiveness of the Nordics as a market and operational value
In a recent ION Influencers fireside chat hosted by Giovanni Amodeo, Jan Johan Kuhl, Managing Partner at Polaris Private Equity, shared his extensive experience and insights into the Nordic private equity market. The discussion covered a range of topics, highlighting the unique attributes and future prospects of the region.
Background and Overview of Polaris Private Equity: Jan Johan Kuhl began by outlining his professional journey, which spans over 17 years at Polaris and includes significant experience in private equity-owned businesses and strategic roles. He provided an overview of Polaris Private Equity, emphasizing its focus on the lower mid-market in the Nordics, particularly Denmark and Sweden. Polaris operates through three main funds: Polaris Private Equity, Polaris Flexible Capital, and Polaris Public Equity, each targeting different investment opportunities within the same geographic and sectoral focus.
Attractiveness of the Nordic Market: Kuhl elaborated on the attractiveness of the Nordic market, citing its consistent delivery of high returns, robust economic frameworks, and high levels of talent and innovation. He noted that the Nordics rank highly in global competitiveness and talent indexes, making it a favorable environment for investment. The region’s resilience and adaptability were highlighted as key factors that appeal to investors, despite global economic uncertainties.
Investment Strategies and Market Dynamics: The conversation delved into Polaris’s investment strategies, particularly its focus on the lower mid-market. Kuhl explained the structural arbitrage between lower mid-market and true mid-market companies, emphasizing the opportunities for growth and value creation in founder-backed businesses. He also discussed the competitive landscape, noting that while competition exists, it has not intensified significantly in recent years.
Talent and Organizational Culture: Kuhl stressed the importance of talent and organizational culture at Polaris. He described the firm’s rigorous recruitment process and the emphasis on finding individuals who are not only academically strong but also possess the right personality traits. He highlighted Polaris’s extensive intern program as a key talent pipeline. Looking ahead, Kuhl predicted that future talent would need to be more digitally adept while maintaining the core values of persistence and adaptability.
Synergies and Future Strategies: The discussion also touched on the synergies between Polaris’s different funds and the potential for future strategies. Kuhl highlighted the benefits of cross-fertilization of deal flow and knowledge sharing between the funds. While there are no immediate plans for new strategies, he acknowledged that opportunities might arise in the future.
Market Outlook and Future Prospects: Looking ahead, Kuhl expressed optimism about the Nordic market, anticipating a steady flow of platform deals and add-ons. He noted that while macroeconomic uncertainties persist, the market remains vibrant with ample opportunities. Kuhl also discussed the potential for increased exits and the role of public markets in providing liquidity.
Conclusion: The fireside chat with Jan Johan Kuhl provided valuable insights into the Nordic private equity market and Polaris’s strategic approach. With a strong focus on talent, innovation, and market resilience, Polaris Private Equity is well-positioned to continue delivering value in the dynamic Nordic market.
Key timestamps:
00:09.20 Introduction to the Fireside Chat
00:40.59 Background
01:24.14 Overview of Polaris
03:11.93 Attractiveness of the Nordic Market
05:10.89 Investor Perspectives on the Nordics
09:57.32 Polaris Excellence Model Explained
12:05.08 Future Talent Pool in Private Equity
15:24.57 Interaction Between Investment Strategies
19:05.38 Future Strategies and Market Trends
19:41.84 Market Consolidation Insights
21:09.49 Platform Deals vs. Buy and Build
21:51.16 Navigating Macro Uncertainty
23:23.11 Trends in Secondaries and Continuation Vehicles
23:56.19 Closing Remarks