Cervantes Capital

Overview

Cervantes Capital is a Swedish private equity firm specializing in investments in small and medium-sized companies listed on Nordic stock exchanges. The firm aims to be the preferred owner of choice for these companies, providing long-term capital and liquidity to support their growth and development. Cervantes Capital focuses on businesses with proven models, strong returns on invested capital, and attractive growth opportunities. The firm is known for its active ownership approach, offering hands-on support to portfolio companies when needed. Founded in January 2021 in Stockholm, Sweden, Cervantes Capital was established to address the need for long-term capital and fundamental equity research in the listed Nordic SME space. The firm's managing partners, David Zaudy and Simon Cornell, bring extensive experience in financial research, portfolio management, and corporate finance. The majority shareholder is the Rosello Company, owned by Martin Lorentzon, co-founder and largest shareholder of Spotify Technology S.A. Cervantes Capital operates with a firm belief in the 'people first principle,' emphasizing the importance of highly aligned management teams and boards of directors with a strong sense of shareholder value. The firm's core values include long-term and independent thinking, attention to detail, and a humble and curious approach to their work. As of December 2023, Cervantes Capital managed approximately SEK 1.5 billion across 15 investments, with plans to accept capital from external investors. The firm's portfolio includes companies such as Kjell & Company and Sand Clinic, primarily focusing on the Swedish market. Cervantes Capital's investment philosophy is centered on a long-term, value-oriented, and active ownership approach in the Nordic public equity markets. The firm conducts its own research, focusing on company fundamentals, and seeks to create value through active engagement with portfolio companies. This strategy aims to achieve excess investment returns by taking a long-term view on value creation, distinguishing Cervantes Capital from the general short-term focus of many investment banks and market participants.