FSN Capital has announced the successful closing of the Compass Fund, with total commitments of over €400 million backing a thematic investment strategy.
The Compass Fund is a small-cap fund which invests within future-oriented themes that seek to address society’s key challenges over the coming decade, including Green Transition and Knowledge Economy.
The new strategy is an integrated part of the FSN platform, developed over 25 years and six flagship mid-cap funds. The latest flagship fund, FSN Capital VI, closed in 2021 at €1.8 billion. The Compass Fund leverages the same advisor team and processes, tailoring the investment approach and value creation model for smaller-sized companies. Portfolio companies benefit from the FSN funds’ Executive Advisor network of experienced industrial leaders, as well as the FSN Execution Framework (FEF) and FSN Capital’s* team of 20 operating professionals, specialized in areas including Digital, ESG, and Finance.
The Compass Fund is considered an Article 8+ fund under the EU Sustainable Finance Disclosure Regulation (SFDR). The fund draws on FSN Capital’s industry-leading ESG platform, including established processes for governance, decarbonization, and ESG measurement and reporting. The Compass Fund also introduces new innovations, such as a proprietary impact assessment framework used in the investment screening process, developed with Bridgespan Social Impact.
The Fund is supported by two dedicated partners at FSN Capital, Erik Nelson and Justin Kent. The Compass Fund is approximately 30% invested and will continue to invest primarily in the Nordics and DACH, typically with equity tickets between €20-60 million. To date, the Fund has made four platform investments:
- – Solcellespesialisten, Norway’s largest supplier and installer of solar energy systems
- – Firesafe, the market leader in the Nordics for fire safety services
- – Epista Life Science, an IT Services and consulting firm supporting the Life Sciences industry with digitalization and compliance
- – Seriline, a Swedish provider of Identity and Access Management (IAM) solutions needed for secure access control
Justin Kent, partner at FSN Capital dedicated to the Compass Fund, said: “This is an opportunity to invest in companies that will play an important role as society tackles some of the most pressing challenges we face—unlocking significant commercial opportunities in doing so.”
Erik Nelson, partner at FSN Capital dedicated to the Compass Fund, said: “The Compass Fund has partnered with four businesses to date, led by purpose-driven founders and entrepreneurs. We’ve seen the value that the Compass Fund can bring to these businesses to help them reach full potential, whether it’s to build a platform to scale further, support with M&A, or set science-based targets.”
Robin Muerer and Ulrik Smith, Co-Managing Partners at FSN Capital, said: “The Compass Fund is a natural step for FSN. The small-cap thematic strategy complements FSN’s mid-cap flagship strategy, reopening a highly attractive part of the market where FSN’s repeatable value creation model, ESG leadership, and ethos make us a valued partner for growing businesses.”
Morten Welo, Partner, COO and Head of Investor Relations at FSN Capital, said: “FSN is grateful for the trust and support from leading investors around the world. The Compass Fund leverages the structural capital built over the last 25 years and marks another step on the FSN funds’ journey as leader in responsible private equity ownership.”
The Compass Fund’s diverse investor base includes leading institutional investors and family offices, including endowments, pensions, insurance companies, and funds of funds in the Americas, Europe, and Asia. More than half of commitments came from North America, with approximately 30% from the Nordics and DACH.
The Compass Fund was advised by Campbell Lutyens as placement agent and Kirkland & Ellis as legal counsel, supported by Carey Olsen.
*FSN Capital Partners acts as investment advisor to the Compass Fund.
About FSN Capital
Established in 1999, FSN Capital Partners is a leading Northern European private equity firm and investment advisor to the FSN Capital Funds. FSN Capital has a team of more than 90 professionals across Oslo, Stockholm, Copenhagen, and Munich. Our ethos, “We are decent people making a decent return in a decent way” defines our core values.
The FSN Capital Funds have more than €4 billion under management and make control investments in growth-oriented Northern European companies, to support further growth and to transform companies into more sustainable, competitive, international, and profitable entities. The FSN Funds are committed to being responsible investors and having a positive environmental and social impact across its portfolio while achieving market-leading returns. The FSN Funds are supported by 14 executive advisors with extensive industry experience.
Learn more about FSN on our website: www.fsncapital.com
