Balanced and well-diversified portfolio of holdings
Based on the portfolio company level, AP6’s total portfolio is well diversified with respect to industry exposure. As for an average for European private equity, four overarching sectors are dominant in AP6’s portfolio: Healthcare, Industry, IT and Consumer discretionary. As the portfolio has been changed over the years, a previous overexposure to real estate has been replaced by a satisfying sector spread. Based on the underlying portfolio companies’ headquarters, the geographical spread has also changed in recent years. The portfolio has been deliberately internationalized, with an increasing proportion of European companies and an initial exposure to the US. The Nordic region is still home to more than half of the portfolio companies. The high proportion is explained by a very strong Nordic fund portfolio, but also because AP6 is being regarded as a particularly attractive co-investor for direct investments in its home market. The buyout segment (mature companies) accounts for 88 per cent of the capital employed, and venture (early-stage companies) for the remaining 12 per cent.
The illustration below shows the composition of AP6’s portfolio as of 2018-12-31.