Interview - Fredrik Näslund - Partner, Chief Investment Process Officer, Head of Technology & Payments - Nordic Capital

In this interview, Fredrik Näslund of Nordic Capital the future of private equity and the transformations that are reshaping the industry after several years of volatility. In his view, private equity is not at the end of a cycle, but is entering a more rational phase following the excesses of 2020 to 2022. The private ownership model remains particularly well-suited to small and medium-sized companies, as it allows for quick decision-making, long-term investment, and independence from quarterly results.Nordic Capital the importance of asset quality. Solid companies, resilient to economic cycles and geopolitical shocks, will continue to attract strategic buyers. Conversely, strategies relying solely on leverage or the assembly of disparate assets are less suited to an environment where capital once again has a cost. The interview also highlights the growing role of sector expertise. For Nordic Capital, specialization in a few sectors such as healthcare, technology, and software remains a key driver of performance. This approach enables better sourcing of opportunities, support for portfolio companies, and successful exits. Artificial intelligence is presented as a new driver of performance, primarily through improved internal efficiency within companies, particularly in R&D, reporting, human resources, and go-to-market strategies. Ultimately, agent-based AI could also create new products and generate additional revenue for end customers.Finally, Fredrik Näslund believes that private equity will continue to open up to private investors, even if this shift will require education on illiquidity and the long-term horizon. The best managers are likely to remain those who combine specialization, operational capability, investment discipline, and execution quality.