Private Equity funds in Norway 2023Activity Report 2023

Norwegian PE firms raised NOK 29.5 billion in 2023, a decrease of 26 percent from the fundraising level in 2022. Despite the decrease, the fundraising level of 2023 was high in a historical perspective, growing by almost 70 percent from 2020. In the period between 2007 and 2020, fundraising in Norwegian PE firms has never exceeded NOK 18 billion.

Investment activity by Norwegian PE firms declined in 2023, with a total amount invested of NOK 13.3 billion. However, this is still well above the historical average in the period prior to 2021. The number of investments also dropped significantly in 2023 and was at its lowest level since 2007.

Norwegian portfolio companies attracted investments of NOK 16.3 billion from Norwegian and foreign PE firms in 2023. This is the lowest amount attracted since 2016.

In the Norwegian market, companies within the transportation sector attracted the most capital of all sectors, at NOK 3.3 billion, making up more than 20 percent of the total amount invested in Norwegian portfolio companies. NOK 2.9 billion was invested in both the ICT and the cleantech sector, making those two sectors the two sectors attracting the second most capital in 2023. In fourth place is business related products, receiving investments of over NOK 2.1 billion.

The number of exits decreased further in 2023, with 22 exits by Norwegian PE firms. The number of exits has decreased every year since 2019. The decrease in 2023 comes from a drop in divestments in the buyout and venture phase, while the number of divestments has increased in the seed phase companies. However, the value of all exits in 2023 was higher than in 2022, increasing by 19 percent from the previous year. Sale to trade buyers remains the preferred divestment strategy.