In 2014, the founders of Pamica detected a change in the risk capital market. Interest in private equity grew and traditional actors with funds worth billions started to look for even bigger investment opportunities. Smaller businesses were overlooked and found it harder to attract investors. There was a need for a market participant focused on smaller, entrepreneur-run companies around the country.

Partners for entrepreneurs

Jan-Olof Svensson and his partners got in contact with Catella, a listed company working in asset management, whose customer base was mainly comprised of previous entrepreneurs interested in investing in unlisted companies – something that’s difficult for individuals to do. Together they created Pamica.

“With experienced entrepreneurs investing, we buy into and grow companies together. Many companies that come to us are in some form of discussion over ownership. It could involve a partner wanting to be bought out, a company that needs to be bought up, or the need to hire a CEO. Entrepreneurs often want to help grow the company, but they need support. That’s where we come in,” says Jan-Olof Svensson, founder of and partner in Pamica.

Networks contribute to expertise

The concept behind Pamica is to grow the companies in its portfolio together with entrepreneurs by further developing and managing their ideas, knowledge and visions. And so, a decision was made early on that only experienced entrepreneurs could co-invest. Pamica then leverages the skills within its strong ownership network which currently totals 180 people. This can involve everything from industry specific knowledge to sales expertise.

“We don’t just assure growth; we want to create good companies. We put together a board of directors comprised of investors from our ownership network alongside the entrepreneurs. Obviously, everyone wants to get back as much as possible from their investment, but our common aim is to build value creating structures and companies that can be sold on to someone who will manage it well,” continues Jan-Olof.

In order to be able to act quickly in acquisitions and then help the companies evolve, Pamica needs an engaged financial partner with good insight into the business.

“Capital is expensive. It’s important to strike the right balance between equity and borrowed capital, and borrowed capital is particularly important for us. Collector is bound by the same regulations as big banks and has the same credit processes. They’re also attentive and act quickly. They spend a good amount of time getting themselves acquainted with our company, making it easy to maintain ongoing dialogue and find solutions that work for both partners. With Collector, we don’t just get access to liquidity, but also knowledge,” says Jan-Olof.

Collector – a well-informed partner that gives feedback quickly

The relationship between Collector and Pamica began in 2018 in conjunction with an investment in Sappa, one of Sweden’s largest telecom companies. Collector was the main financial backer and has since been an active financial advisor for a number of additional acquisitions made by Sappa.

“We’re niche actors in a changing and consolidating market. Our strategy is driven by acquisitions, and Collector is always well informed, asks the right questions and follows things up. They’re also quick to respond and come back quickly with a decision. Or they’ll get back to us with feedback on what’s needed in order to be able to reach a decision. This speed and dialogue are what we value,” explains Hasse Svensson, CEO of Sappa.

Involved with all aspects of the company

Sappa illustrates the value of an engaged owner combined with engaged banking contacts. Pamica’s recipe for success is not just getting the right people on the board, but also understanding the advantages of having a stable and long-term financial partner that contributes to maximising the synergies in each company.

“People are just as important for how we build our companies as they are for our banking relationships. Collector’s greatest asset and skill is that they get involved with the entire company, not just the board. They understand our company’s businesses and the way we work. They get to know how people work,” concludes Jan-Olof.

 

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