Direct investments in the forestry sector

Mandate

Of the capital that Investinor manages as part of its direct investment mandate, NOK 500 million is earmarked for the forestry-related sector. Earmarked capital is subject to the same investment criteria as all other capital managed by Investinor. We refer to our direct investment mandate.

The term ‘forestry-related sector’ encompasses all aspects of the industrial forestry value chain, including all activities linked to the forests themselves, as well as those linking forest-related activities to forestry-related industries such as timber processing, timber mechanics, biochemistry/energy/materials and advanced timber processing.

The mandate covers the seed, venture, expansion and mature industry phases. To address the seed and venture phases, we have established an investment company called Shelterwood, which is co-owned by Investinor and a group of forestry companies (Norsk Skoginvest, Norske Skog, Borregaard and Skogbrand), and administered by Investinor.

Assessment criteria

• The company has its business in a forestry-related sector
• The company is in the seed, venture, expansion and or mature phase
• The company has major market potential and a competent team offering a progressive technology and/or business model
• The company can demonstrate a realistic scenario for further funding and disposal (exit strategy)
• The company has the willingness and ability to take its corporate social (ESG) responsibilities seriously.
• The current owners must be ready to accommodate new, proactive owners
• Investinor focuses primarily on companies that contribute to Norwegian wealth creation.
• Investinor will typically invest amounts of between NOK 10 and 80 million.

Process

We request that you send your investor presentation to Investinor at post@investinor.no.

1. If your company meets the criteria, we will invite you to a telephone or videoconference call during which you will make your initial investor presentation.
2. If, after the first call, Investinor wishes to continue with the process, your company will be invited to a more detailed review of your business and your co-investors.
3. If your company progresses further, a thorough review (due diligence process) will be carried out. On the basis of an overall assessment, Investinor will then judge which companies will continue to the decision stage.
4. This process is handled by Investinor, which takes the final decision regarding investment in your company.

Investinor – what we do

Investinor aims to be a reliable and attractive long-term investor offering capital investment, expertise and networks. We intend to achieve commercial returns on our direct investments. By means of direct investment, Investinor aims to contribute towards growth in the businesses of tomorrow.

Together with our expert co-investors, Investinor shall take responsibility for the selection and active monitoring of our investment objects. A shareholders’ agreement under commercial terms shall be drawn up. Investinor shall ensure that an agreed development plan is drawn up for the company, and that effective reporting and investment monitoring procedures are put in place.  Investinor places significant emphasis on ensuring that both the company and its co-investors have the ability and willingness to discharge their social (ESG) responsibilities seriously and to exercise good business practice.

Investinor shall receive quarterly reports from the portfolio company and its co-investor(s). Investinor shall appoint a Board member or an observer onto the Board of the portfolio company, or a member of its nominating committee. Ownership meetings with co-investors shall be held as and when required. Investinor will conduct a continuous evaluation of whether we can contribute with more than just capital, for example via the Board or by means of more active monitoring of its companies.