Strategy

Investment approach

Cevian typically acquires substantial minority ownership positions in European-listed companies that, according to Cevian’s analysis:

• have leading market positions,
• produce strong cashflows,
• benefit from robust long-term demand dynamics,

and are overlooked, misunderstood or out-of-favor with investors. These companies usually have sound operational performance, though Cevian sees substantial room for improvement and value creation. In Cevian’s experience, this value-creation potential is typically not reflected in companies’ share prices.

After acquiring an ownership stake, Cevian works with the boards and management teams of those companies to advance initiatives designed to increase their long-term competitiveness, profitability and sustainability. These normally focus on improving operations, corporate strategy, organizational structure, financial management, corporate governance and sustainability more broadly.

This work is designed to create real long-term value that benefits all shareholders and other stakeholders.

Cevian’s own team members have joined the boards and/or nominating committees of c. 75% of all disclosed portfolio companies since Cevian’s founding in 2002, reflecting Cevian’s constructive, hands-on and long-term approach.

Cevian manages a concentrated portfolio of ownership positions in c. 10-15 publicly-listed companies at a time. Cevian is commonly the largest or the second largest owner of its portfolio companies, and often remains invested in companies for 5+ years. Cevian’s optimal investment size is EUR 500m to EUR 1.5 billion per company, though larger investments are not excluded.