We created Summa Equity to invest to solve global challenges.

As the population and economy are growing,  and technology transforms society, we are  faced with increasing challenges. These  challenges, however, provide tremendous  opportunities as making the world more  future-proof requires us to adopt new and  innovative solutions. We at Summa seek to  invest in and develop companies that provide  these solutions. Through their products or  services, these companies aim to reduce  climate change, mitigate resource scarcity,  improve education, health and well-beingor provide sustainable energy sources

We created Summa Equity to invest to solve global challenges.

As the population and economy are growing,  and technology transforms society, we are  faced with increasing challenges. These  challenges, however, provide tremendous  opportunities as making the world more  future-proof requires us to adopt new and  innovative solutions. We at Summa seek to  invest in and develop companies that provide  these solutions. Through their products or  services, these companies aim to reduce  climate change, mitigate resource scarcity,  improve education, health and well-beingor provide sustainable energy sources

Summa Summarum

The name Summa Equity was not chosen  arbitrarily. “Summa” is Latin for “total”,  which is intended to signify “for all”  (inclusiveness) and what our thesis is “all  about”. “Equity” represents equality, justice  and fairness. To us, the name reflects our  attempt to create a “win-win”; value and  prosperity both for us and others. Summa  Summarum, Summa Equity means “Our way  of creating value and prosperity for all”.

Our logo is a sum-sign ( ∑ ) for total, but also  incorporates an equals-sign ( = ) for equality.

Screenshot 2020-04-17 at 10.23.21

PRIVATE EQUITY 4.0

Using ESG to create more value with less risk

The private equity industry is evolving. When the 1980s gave birth to the first wave of leveraged buyouts, PE firms created value primarily through financial engineering. This involved the use of high leverage in combination with large equity stakes to motivate managers charged mainly with taking costs out of mature businesses. Then, in the 1990s, PE 2.0 was focused heavily on increasing operating efficiencies, accomplished often by bringing in proven CEOs from successful public companies.

Starting in the 2000s, PE 3.0 saw the building of large financial institutions that continued to function as value-adding buyers, while responding to tough competition from both strategic and financial buyers by expanding into different asset classes and developing new areas of expertise

Today, in a movement that might be called Private Equity 4.0, a growing number of PE firms have been adding to their existing capabilities the effective management of “externalities” and environmental, social, and governance (ESG) factors. In this article, we focus on how one such firm—our firm, Summa Equity—has turned its ESG principles and practices into a core competence, a source of competitive advantage that has enabled the firm to distinguish itself from its competitors and, in so doing, to bring about significant increases in efficiency and long-run value.

Watch our Managing Partner present our approach below :

 

Summa Equity is developing fast

Summa Equity is developing fast, and it is encouraging to see  increased momentum among companies and investors to join us in solving the challenges that the world is facing. We  just closed our Fund II with SEK 6.5 billion (c. EUR 610 million)  to invest to solve global challenges. Although it has only been three years after the inception of the firm, and two years  since we closed Fund I with commitments of SEK 4.7 billion (c. EUR 440 million), there has been a significant development  in the investment community. It recognizes that companies  that incorporate solutions to ESG challenges, is no longer just a way to minimize risk, but is increasingly seen as a tool to create value. Companies will show stronger growth and  returns. In short, these companies will be more future-proof.

We are honored and proud that Summa has been recognized  as an innovator, most recently by winning the ESG Award at  the Private Equity Awards 2019, one of the oldest and most  respected tributes in our industry. Summa Equity won for placing ESG considerations at the core of our investment model. We wish to co-create a way of thinking with our  portfolio companies and together grow competence around  the Sustainable Development Goals, the associated business  opportunities and how to measure impact. We believe that  this will contribute to stronger long-term strategies, fuel  innovation and create a stronger sense of purpose.

SDG Aligned Companies

2019
+2
13
2018
11
2017
7

Within the Changing Demographics investment theme we have a few broader sub-themes such as healthcare, education and security, all with clear alignment to one or more of the UN SDGs. Healthcare is by far the largest one as healthcare expenditure typically represents 10%+ of GDP in advanced economies. It is also the sub-theme where Summa has our deepest expertise and current primary focus within the Changing Demographics theme.

Our investment strategy in healthcare is in itself centered around three universal challenges; cost, quality and unmet patient needs, where society’s failure to solve them leads to a development of an unsustainable global healthcare system. With the challenges as a starting point, we look for companies and market niches where solutions are developed that have the potential to move the system in a positive direction, in the Nordics and globally. We refer to this investment strategy as “The Future of Healthcare” where we have defined specific themes that represent solutions to the challenges, to focus our efforts – illustrated in the chart below. These themes cut across products and services. We believe that developing leading expertise along these themes will be key to Summa’s long-term success and ability to support our investments, and therefore we invest significant resources in building that competence base.

Projected industry growth

2020
+4
136
2019
118
SDG 15

Projected industry growth

2020
+4
136
2019
118

Thought leader and preferred digital partner to the educational sector

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Arthur Swanson

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Lin Education

Thought leader and preferred digital partner to the educational sector

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Infobric

Arthur Swanson

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