Investor

"After Ruben’s death, several dramatic events occurred. The first was the purchase of Alfa Laval. The deal was linked to liquidity problems for the Wallenberg sphere. In the late 1980s and early 1990s, the group was heavily pressured by attacks from “raiders” such as Sven-Olof Johansson. It was clear to the strategists within the sphere that the construction of shareholdings divided between two separate holding companies, Investor and Providentia, was insufficient protection against attacks. Throughout history, the Wallenberg group had protected itself against hostile takeovers through differential voting shares. However, this was no longer enough. An investor who could mobilize large amounts of capital could theoretically wrest control from the Wallenberg family. The case with Sven-Olof Johansson had been worrying, a newcomer, with the help of borrowed capital, had managed to acquire a “corner position” in Saab-Scania, pushed the stock value sharply upward, and challenged the family’s control."

"Bertil Hagman hastily went to London to discuss the matter with Hans and Gad. After the meeting, they agreed that Tetra Pak would make a bid. Through Jacob Palmstierna, who was about to join Tetra Pak’s board, a signal was sent to Investor’s CEO, Claes Dahlbäck, that Tetra was interested in Alfa Laval. But for Tetra Pak, the contact with Investor was not sufficient, there was another major owner in Alfa Laval, namely the financier Fredrik Lundberg. Tetra Pak was not only interested in buying a part but desired complete control over the company."

"The strategists’ conclusion was to buy as many shares as possible on the market and then concentrate all power in a single company, Investor. But to implement such an operation required capital and more capital than the Wallenbergs had available. The only solution was to sell another part of the empire."

"But EQT’s best deal so far, one of the best ever made in Europe according to Conni Jonsson, was German Tognum. It yielded a profit equivalent to more than forty times the invested capital. Tognum built diesel engines, but the previous owner, Daimler-Chrysler, had let the subsidiary idle for a while. EQT made sure to use the expertise available in Tognum to broaden sales. They invested in a new generation of engines, targeted new markets, for example engines for large boats and ships, and thus increased both profit and sales. So how did EQT, a rather young and unknown company, manage to get to the negotiating table? The seller, the newly merged automotive group Daimler-Chrysler, mainly wanted to avoid the business ending up with their worst competitor, the truck manufacturer MAN. The bidder Carlyle was not a suitable buyer either, since Tognum had business with Cuba, a red flag for American companies. Instead, it became the little EQT. But they weren’t completely unknown, after all, Investor was a major shareholder in Daimler’s competitor Scania. It became an important deal not only because it was profitable, but because it marked an entry into the German market. Now, people there knew who the EQT people were when they called and wanted to do business."

"One evening, the founders sat together with a couple of brand consultants to brainstorm over a few beers about a name for the company. Thomas von Koch noticed that the new radio channel “Energy” is spelled NRJ, so it was apparent that “equity,” which is what they were involved in, would become EQT. The first fund raised 3.2 billion, with Investor and AEA each contributing 15 percent, and the rest of the capital coming from, among others, the AP funds. “We envisioned developing an industrial model of private equity, and that we could leverage the Wallenberg network. We didn’t have any more long-term plan than that,” says Conni Jonsson."

"But EQT’s best deal so far, one of the best ever made in Europe according to Conni Jonsson, was German Tognum. It yielded a profit equivalent to more than forty times the invested capital. Tognum built diesel engines, but the previous owner, Daimler-Chrysler, had let the subsidiary idle for a while. EQT made sure to use the expertise available in Tognum to broaden sales. They invested in a new generation of engines, targeted new markets, for example engines for large boats and ships, and thus increased both profit and sales. So how did EQT, a rather young and unknown company, manage to get to the negotiating table? The seller, the newly merged automotive group Daimler-Chrysler, mainly wanted to avoid the business ending up with their worst competitor, the truck manufacturer MAN. The bidder Carlyle was not a suitable buyer either, since Tognum had business with Cuba, a red flag for American companies. Instead, it became the little EQT. But they weren’t completely unknown, after all, Investor was a major shareholder in Daimler’s competitor Scania. It became an important deal not only because it was profitable, but because it marked an entry into the German market. Now, people there knew who the EQT people were when they called and wanted to do business."