Although we might not necessarily be better or smarter investors than our private equity peers, we do have a different agenda. Unrestricted by any mid-term exit requirements, our ambition is to invest in companies that can offer a long-term value potential. Being a family-owned business with a long history in entrepreneurship, we know what it takes to build successful businesses.
We are looking to team up with strong management teams that see the benefit of a growth oriented, long-term and active owner with financial capabilities. Our Investment Approach is just as much a partnership approach with the overriding goal to always focus on what is in the best interest of our companies.
Read more about some of our success stories below:
For investment proposals, please contact any of JCE’s staff or email us at investment(a)jcegroup.se
The below investment criteria should be seen as a guidance of what we are looking for, not as an absolute requirement. We are always prepared to investigate good investment opportunities.
Investments in unlisted companies
Enterprise value of 25 - 750 MSEK
Active ownership potential
Ambition to be the largest shareholder, preferably majority
No specific industry preferences
JCE’s core competence is to be an active owner and our aim is to team up with outstanding management teams
Scandinavia, Northern Europe
Other regions on a case-by-case basis
All development phases considered, but preferably:
Market leading position(s)
Strong management team
International growth potential
Equity investments in listed companies
Equity investment of 10 – 500 MSEK
Active ownership potential
Board representation, election committee, etc.
Ambition to be the largest or one of the largest shareholders
Usually >10% ownership
Investment criteria otherwise in line with JCE Industries
Equities, bonds, funds, alternative investments, discretionary managed funds, etc.
Investments of 1-100 MSEK
Mainly listed / liquid securities
Main purpose to serve as a liquidity buffer and a supplementary source of income
Usually no active ownership
JCE Real Estate & Others
Selective and opportunistic real estate investments, currently mainly concentrated to timberland investments in Southeast US
South American investments primarily managed by JCE Chile
Our Partnership Approach
At JCE, we have a long-term perspective on value creation, which is reflected in everything we do. We believe in local decision making, but recognize the value of support to help our subsidiaries develop into global companies.
Partnership model – JCE Industries
Our Partnership model for JCE Industries is based on a strong partnership between a company’s management and JCE; strategically, operationally and not the least through aligned interests. We are always aiming at creating an environment of transparency and efficiency and with alignment of interest and a clear division of responsibilities, all in the best interest of our companies.
JCE exercise our active ownership through Board representation and informal co-operation with management. On a case-by-case basis, we provide our companies with hands-on support primarily in matters of recruitment/strengthening of management team, certain operational and strategic initiatives, financing issues and M&A related issues.
The boards of our companies are expected to address issues related to strategy, capital structure, risk and profitability, among other things. This includes approval and follow-up on the implementation of the strategy plan developed by management and JCE.
We expect the management in our companies to take full responsibility for operational and day-to-day issues. Our unlisted holdings are always operated with independent P&L and balance sheet responsibility. This includes, among other things, financing on own merits free from any parent company guarantees.
Partnership model – JCE Investments
Listed companies are by definition relatively independent and there are strict rules and regulations when it comes to corporate governance related issues. Our ambition is to achieve influence on the development of our listed strategic holdings by being the largest or one of the largest shareholders in each such holding.
However, to have a positive influence on the development of any company, insight is also required. Our ambition is to gain this through a recurring dialogue with company management, company visits and own research. Based on this, our ambition is always to develop an own action plan for each listed strategic holding, over time implemented through participation on the Board of Directors, Election Committee, and at Shareholders’ meetings.
As a base case, our ambition is to have one or two JCE representative(s) on the board of each listed strategic holding as well as being represented in the Election Committee.
Our Value Creation Approach
Proactive and opportunistic deal sourcing
We focus on proactive deal sourcing in all acquisitions and divestments and consider this a necessity to achieve superior returns in today’s increasingly competitive investment environment.
We focus on organic growth. However, we are always prepared to capture acquisition opportunities when they present themselves and interested in possibilities for international expansion. For us, profitable growth is always an absolute requirement.
We focus on operational efficiency improvements as well as economies-of-scale. We also believe that improved “quality of earnings” is of importance, as reduced earnings volatility results in lower overall risk. Similarly, we see activities to increase break-even levels to be of significant importance.
We focus on working capital management, but avoid factoring and similar measures that do not contribute to long-term value creation. We provide our strategic holdings with the right capital expenditure budget to capture profitable growth and rationalization opportunities. We aim to find the optimal capital structure for each of our companies in order to reduce the weighted average cost of capital.
We focus on strategic positioning. Sales growth, profitability and capital efficiency can never be achieved at the expense of the strategic development of a company. During our ownership we are looking to augment and strengthen the strategic position of the company, through e.g. focus on the core business, investments in organisation, R&D, marketing etc. We are not just looking for short term gains, we are looking to build the strong companies of tomorrow.
JCE Group AB
P.O. Box 53230
SE-400 16 Göteborg, Sweden
Visiting address Högåsplatsen 3
SE-412 56 Göteborg, Sweden