Aeternum’s Journey Towards a Potential IPO on the Stockholm Stock Exchange
Since its inception, Aeternum has had a clear goal in mind: to be listed on the stock exchange. In an exclusive interview with Afv, Vegard Søraunet, the CEO of Aeternum, revealed that their sights are set on the Stockholm Stock Exchange, possibly as early as next year.
“We currently have a capital base of only two billion, which is insufficient for an IPO. We have stated that we aim to reach 3-4 billion. If we achieve that and the timing is right, then we can push the button,” Søraunet explained.
Over the past four years, Aeternum has seen the value of its positions increase by around 50%.
“We had a great 2021, a tough 2022, but then we bounced back in both 2023 and 2024. When we started, we told all our clients that we needed five years to prove ourselves,” the CEO shared.
Søraunet, with his extensive experience, previously spent 15 years at Odin managing global funds and emerging markets before focusing on Sweden and the Nordic region in the last decade. It was during this time that he became familiar with Swedish investment companies, laying the groundwork for his role as CEO and fund manager at Aeternum.
Disrupting the Fund Industry
Aeternum was founded in 2021, stemming from the management of shipping magnate John Fredriksen’s wealth. Following a public dispute in the fall of 2023, Søraunet took control of Aeternum. Today, the foundation of the company’s capital comes from around 45 Swedish families.
“I believe investment companies are gradually disrupting the fund industry more each year. Why should people buy an expensive equity fund for one and a half percent when they can own a publicly traded investment company at a lower cost?” Søraunet pondered.
While admiring established investment companies like Latour, Bure, and Creades, Søraunet noted a key distinction for Aeternum.
“They have emerged through a founding father figure. We, on the other hand, started with a pool of money that allowed us to freely acquire stakes in the 20 companies we currently hold shares in,” the Norwegian observed.
Differentiating Factors and Unique Holdings
One of Aeternum’s significant holdings is Skistar, representing 22% of the company’s net asset value. The fund initiated its position in Skistar in 2021 and now owns over 19% of the company.
Søraunet highlighted Skistar’s market dominance in Sweden and Norway, along with hidden property and land values within the company. He estimated these values to be around 4-5 billion kronor, a substantial portion of Skistar’s total market capitalization of 13 billion kronor.
“We see potential for significant returns from the land, especially when it is developed in conjunction with the ski resort. By strategically owning the land where new lifts are built, a ‘ski in, ski out’ experience can be created,” Søraunet explained.
Challenging Misconceptions and Identifying Opportunities
Søraunet challenged common misconceptions about Skistar’s business, emphasizing its resilience and attractiveness to investors beyond the cyclical nature often associated with ski resorts.
Additionally, he discussed the evolving demographic trends in ski destinations, illustrating how changing consumer preferences can lead to counter-cyclical effects that attract diverse customer groups during economic fluctuations.
Exploring Innovative Investments
Among Aeternum’s less-known investments is Profoto, a Swedish lighting company that went public in mid-2021 but struggled with a 50% decline in its stock price. Despite recent challenges, Søraunet likened Profoto to the “Apple of lighting for photographers,” citing its product innovation and expansion into the film industry as key growth drivers.
Led by long-time CEO Anders Hedebark, who owns nearly 40% of the company, Profoto’s strategic moves into Hollywood and product diversification signal a potential turnaround for the company.
Embracing Change and Diversification
Looking ahead, Søraunet expressed interest in small-cap stocks, noting their long-term growth potential despite recent market downturns. He emphasized the importance of diversification and flexibility in Aeternum’s investment strategy, aiming to capitalize on both listed and unlisted opportunities while outperforming industry peers.
As Aeternum continues to navigate the complexities of the financial markets, Søraunet remains committed to delivering value for investors and challenging traditional investment norms. With a unique approach and a diverse portfolio of holdings, Aeternum is poised for further growth and success in the evolving investment landscape.