The first half of 2010 has been a good one across the Nordic region. Already this month it has been announced that two new funds have been raised – by HitecVision and Polaris – in both instances the largest funds these firms have raised. Investor interest in private equity in the Nordics has held up well, with both funds attracting new LPs from a more international investor base across Europe and the US. This follows on the heels of the successful fundraising efforts of a number of Nordic funds in 2009, a time when most international funds found fundraising much harder going.
We’ve seen th
ese successes reflected in the recruitment in the region over the first half of this year with a strong pick-up after a relatively quiet 2009. A number of funds started to recruit towards the end of Q1 and are continuing in Q2, often recruiting for multiple hires.
This reflects trends in the UK and elsewhere. Much of the hiring is for associates as funds bring new talent into the firm, having perhaps not recruited in 2009 or even in 2008. There is concern that a talent gap may result if the investment managers of the future are not identified now.
Another key trend for this year is the demand for Finns, Danes and Norwegians. We’re regularly asked by clients, those of Swedish origin in particular, to help diversify their language base with the recruitment of star candidates with native fluency in Danish, Norwegian and Finnish. Our experience confirms their impression that strong Swedish candidates are easier to identify and there are some super candidates in the investment banks and consultancies. But their Nordic brethren from their neighbouring countries are harder to find. There are simply fewer of them, especially in the investment banks.
Recruiting them is even trickier for funds based in Stockholm. Whilst some Nordic candidates will relocate to the Swedish capital, for many, their first choice is to remain in London or relocate to the capital of their own home country. This creates a limited pool of candidates for many funds looking to hire a star Dane, Finn or Norwegian. So if you find one – snap them up!
Finally, funds are typically keen to find candidates with international experience, ideally from London or New York – transaction experience from the global financial centres remains highly valued.
Looking from the candidate perspective, the capital raised and available to deploy, coupled with the recent increase in investment activity, has led us to see a noticeable increase in interest in moving back to the region from London. Many see it as an opportunity to gain real transaction exposure, which they haven’t seen in 2008/9 and might still not see in the quieter London market. However, a word of warning, whilst the opportunity to invest is attractive, the recent increase in banking salaries in London means these candidates will think long and hard before moving out of the banking sector for private equity no matter how attractive a move back home may be.
David Richardson - PER
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