About 2/3 of the group`s capital is dedicated to be employed within the area Direct Active
Investments (DAI). Direct means investments made directly into the companies (not via funds or/
and other intermediaries) and active means that Ferncliff are represented on the board, often with
the chairman and several board-members and our people work closely with the management on a more
or less daily basis.
The investments within this business line are few, only 5-7 investments at the same time. To succeed,
focus is key to our strategy and our model is to work very closely with management and get involved
in day to day decisions regarding M&A activity, financing issues and preparing the companies for IPO.
Ferncliff focus on investments in three areas - where our partners have a world leading technology,
world market access, a good management and skilled labour:
Energy and suppliers to the oil & energy industry:
S.D. Standard Drilling Limited >>
Nordic Construction Limited >>
Strata Marine & Offshore AS >>
Spectrum ASA >>
Raw-material and suppliers to the raw-material industry:
None at the moment
Other traditional industries:
Namdal Skoger AS >>
As the above list indicates we work with industries where there is a leading industrial cluster in
Norway. This makes it easier to be part of a rich deal-flow, recruit competent and complementary
board members, management and key employees.
Our micro strategy as owners in a company typically follows three strategies (and we often apply
two or three at the same time):
Buy a smaller/medium sized company with an attractive position in a niche and “buy and build”
something bigger and thereby create a more attractive company. By attractive we mean a better
company for employees, for customers (larger offering, more financial professional) and more
attractive in the financial market (exit via IPO or trade sale).
Restructure the business by dividing a “failed” company into smaller units. After the company is
divided into more manageable units, we often apply strategy 1, to grow the business but within a niche.
Build a new entrance in a traditional industry. The diversification from the competitors is not technology
(we do not like to invest in new technology, we simply do not like the “game”) but more often
a diversification by different/modern execution and covering a niche in the market.
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