Financing the Entrepreneurial Business Analysis 2022

Running head: FINANCING THE ENTREPRENEURIAL BUSINESS
Financing the Entrepreneurial Business
Name of the Student:
Name of the University:
Authors Note:

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Analysis of the 3 PE houses and selection of a suitable fund that fits Pandora (B):
Pandora (B) is in the midst of phenomenal growth with its revenues growing leaps and bound
with each passing year. It is not in need of any cash investment at this point however, to continue
the phenomenal growth of business in the future it needs to cater to different markets and to
achieve that, access to skills and expertise is necessary. Thus, while selecting a suitable PE fund
the emphasis shall be more on ease of access to skills and expertise than anything else.
Established in 1989 Nordic Capital mainly operates in Nordic region with its main business
operations include investment in companies in the region and private equity investment in
Nordic region. Nordic capital has 20 investment professions and believes in responsible
investment with committed approach to long term success of business and creation of value
(Oberli, 2018).
Axcel is another private equity firm based in Nordic with its focus firmly on mid-market
companies. The firm founded in 1994 has a broad base of Danish and international investors.
The firm mainly invest in leading companies in industrial, business services, Consumer & Retail,
IT & technology sectors. It is the largest Danish PE fund with its committed capital rising to
DKK 3.0 billion in 2005.
Triton Partners was established in 1997 with its investment market spread to different parts of
the world including Austria, Belgium, Denmark, Germany, Finland, Luxemburg, Italy, Spain,
Sweden, the Netherlands, Switzerland and Norway. The firm has a committed capital of DKK
16.0 billion however, it has no prior investments in fashion or luxury industry.
Taking into consideration above it is clear that despite huge committed capital in the kitty of
Triton Partner, the fund is not the suitable choice for Pandora as the former has zero experience

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of investment in fashion and luxury industry. Axcel also seems not the suitable match for
Pandora as the committed capital of the firm itself is merely DKK 3.0 billion and further the firm
mainly invest in Denmark and Sweden which will not be beneficial for the expansion strategy of
Pandora. On the other hand Nordic Capital seems to be the most suitable PE fund for Pandora
with committed capital of DKK 27.0 billion and 20 investment professionals with maximum
amount of experience in investment including prior and present experience of investment in
fashion business. Thus, the ease of access to skills and expertise necessary to maintain
phenomenal growth of Pandora thus, Nordic Capital best fits Pandora (Ferran, 2018).
Five key reasons for selection of a particular fund over and above other two funds:
Following are the five reasons for selecting Nordic Capital PE fund for Pandora:
I. Highest amount of experience out of all three PE funds.
II. The fund has 20 investment professionals and 7 partners by far highest out of the
three funds.
III. The firm is the only fund to have prior experience of investment in fashion business
with its current investment in Swedish fashion business.
IV. The fund has highest amount of committed capital with DKK 27.0 billion out of three
PE funds.
V. The committed approach of the fund to investment responsibly to promote long term
success of business and creating value for business (Loos, 2018).
Proposed deal structure:
The proposed deal structure with certain assumptions (given at the end of the table) is given
below: