2 May, 2022


Sourcing − Business generation from a partner perspective dominates when making co-investments. Most of the funds where AP6 has committed capital are with established partners. Long-term relationships and close dialog make it possible for AP6 to, at an early stage, identify its partners’ needs and interests, which creates opportunities for AP6 to participate in co-investments. Business generation also occurs from a company perspective. AP6 has dedicated resources in the form of specialist expertise with many years of experience who monitor and analyze the market in order to identify attractive companies. In parallel with this, status checks with potential fund partners also occurs on an ongoing basis. Long-term relationships and consensus on value creation where ESG is included characterize co-investments that AP6 chooses to implement.

Selection − The company is assessed from a vintage perspective by comparing it to prior co-investments, the assessed holding period and when exit will likely occur. The partner for the co-investment is also compared to other partners that AP6 has co-invested with. Impact on the AP6 portfolio is assessed by looking at how the transaction would affect both geographic and sector diversification. An analysis of the company’s risk and return profile and sustainability is performed.

Evaluation − The market where the company is active, along with its offering, is also analyzed. To gain a more in-depth understanding of the company, AP6 looks at such things as customer concentration, competitors, design of the business model and its financial performance. Within the sustainability assessment of the company, formalized reporting structures as well as operational measures are always evaluated. An important part relates to the company’s plans to develop its sustainability approach, both in terms of future projects and level of ambition. Evaluating potential co-investments are often time-critical. AP6 has developed well-functioning routines/decision processes, with dedicated resources.