New exit: DESENIO

Funds of Funds Experts
Lower Mid-Market Experts

We are pleased to inform you that our Northern European growth equity manager, has sold half of its holding in Desenio Group AB after the company listed its shares on the Nasdaq First North Growth Market.

The GP signed an agreement to acquire 59% of Desenio’s ownership in December 2016. The GP has made substantial improvements to the company since acquisition, leading to impressive revenue growth from SEK 100m in 2016 to over SEK 1.3bn in revenues in 2020. Much of this growth can be attributed to international expansion- with revenues outside the Nordics accounting for over 76% today relative to 7% on entry. The value of Desenio Group in connection with the IPO implies an estimated value of 23.0x gross MoC and 202% gross IRR.

As a result, Qualitas Funds I will receive an initial distribution greater than 3.5 million EUR from our GP to be distributed to investors during the following weeks. This distribution is equivalent to 6-7 % of the size of the fund. Nevertheless, the Fund will retain over 24% ownership in Desenio.

Desenio is a Swedish leader in the fast-growing digital DTC (direct-to-consumer) market for affordable wall art. Desenio’s data-driven creative process enables the company to offer a unique range of self-produced designs that combine a high trend factor with global commercial appeal. In 2020, more than 75% of sales were generated outside the Nordic region.

Since the acquisition of Desenio, The GP has supported the company and has contributed to the growth journey with many successful initiatives:

– Enabled the acquisition of Poster Store, strategically expanding operations across Europe, North America, and Asia.

– Successfully expanded international operations; now shipping to over 35 countries, up from 7 at entry.

– Strengthened the breadth and diversity of the management team through recruitment of new COO, CMO, CFO and HR manager.

– Upgraded warehouse facilities and achieved economies of scale to fulfil growth of demand which came with Covid-19.

– Introduced comprehensive Climate Accounting Report to measure and monitor emissions generated.