How Pamica helps entrepreneurs grow

In 2014, Pamica’s founders saw a change in the venture capital market. Interest in private equity grew, and traditional players with billions in funds started searching for increasingly large potential investments. Smaller companies were getting less attention and thus finding it harder to find investors. A need arose for a market player targeting smaller, entrepreneurial companies around the country.  

  
Jan-Olof Svensson and his partners contacted Catella, a listed company that works with wealth management, among other things. Catella's client base consisted largely of former entrepreneurs with an interest in investing in unlisted companies – which is difficult for individuals. Together, they formed Pamica.  
  
“With experienced entrepreneurs as investors, we buy and develop companies together. Many of the companies that come to us are often in some kind of ownership discussion. This could involve buying out a partner, purchasing a company, or hiring a CEO. Often, the entrepreneur wants to be involved in developing the company, but needs support. And that’s where we come in,” says Jan-Olof Svensson, founder and partner at Pamica.  

  
Pamica's concept is to develop acquired companies alongside the entrepreneur by further developing and managing their concept, knowledge and vision for the company. Thus, it was decided early on to only allow experienced entrepreneurs to co-invest. Pamica then leverages the expertise of its strong ownership network, which now includes 180 people. This can range from industry-specific knowledge to sales expertise.  
  
“We don't just promote growth; we want to develop great companies. Together with the entrepreneur, we build a board of investors from our active ownership network. Everyone wants to get back as much as possible on their investment, of course, but our common goal is always to build value-creating structures and companies that are sold to someone who manages them well,” continues Jan-Olof Svensson.  
  
To be able to act quickly with acquisitions and then develop the companies, Pamica needs a committed financial partner with solid insight into the operations.  
  
“Capital is expensive. It’s important to find a good balance between equity and borrowed capital, and borrowed capital is very important for us. Norion Bank is responsive and acts quickly. They spend a lot of time getting to know our business, which makes it easy to have an ongoing dialog and to find solutions that suit both of us. Norion Bank doesn’t just give us access to liquidity, but to knowledge as well,” says Jan-Olof Svensson.  

The relationship between Norion Bank and Pamica began in 2018, in conjunction with the investment in Sappa, one of Sweden's biggest telecom companies. Norion Bank became the main financier and has since been an active financial advisor in a number of add-on acquisitions carried out by Sappa.  
  
“We’re a niche player in a changing and consolidating market. Our strategy is acquisition-driven, and Norion Bank is always informed; they ask the right questions and follow up. They also respond quickly and get back with a decision swiftly. Alternatively, they offer feedback on what is necessary to reach a decision. We value that dialog and speed,” explains Hasse Svensson, CEO of Sappa.  

Sappa highlights the value of an engaged owner combined with an engaged bank contact. Pamica’s recipe for success is not only to have great people on the board, but also to recognize the benefits of having a stable, long-term financial partner that helps maximize the benefits of every company.  
  
“For us, people are as important for how we build our companies as they are for our banking relationships. The biggest advantage and ability of Norion Bank is that they get close to the entire company, not just the board. They understand our companies’ operations and how we work. They understand how people work,” says Jan-Olof Svensson.