The Dutch private equity market faced a challenging economic and geopolitical environment in 2024, resulting in a slowdown of deal activity. Together with a volatile market, these uncertainties contributed to a cautious investment climate with buyers and sellers both adopting a wait-and-see approach. The lower volume of deals put valuations under pressure and returns became less predictable. Even so, investors continue to seek opportunities in resilient sectors offering strong growth potential.
Despite the economic headwinds, NPM continued to build on its strategic ambitions and remain competitive. These ambitions include (1) strengthening its unique market proposition with a flexible, long-term investment horizon; (2) growing its portfolio in line with clearly defined investment themes; (3) reinforcing operational involvement to support participations with specialized experience such as ESG; and (4) improving its ability to support the international expansion of participations.
NPM successfully executed its strategy over the course of the year. Their unique and differentiating profile played an essential role in the face of challenging markets, combining the ability to provide ample capital in a flexible manner with a long-term view on realizing value. Four defined themes continued to guide the company’s approach to investment: Healthy Life & Learning, Digital & Technology, Sustainable Future, and Feeding the World. These themes were ably supported by a growing network of dedicated advisors offering deep expertise in the relevant areas.
Further internationalization remained a top priority and the Group made significant progress towards establishing a strong presence in the Belgian market. In addition to the acquisition of Tech Tribes, an IT services company, and Jeco Energies, a provider of industrial electrical installations, NPM also developed a strong near-term pipeline. Belgian operations have now matured and been fully integrated into the overall structure, driving greater efficiencies.
NPM also expanded into Germany, building a local team and starting to look for opportunities in the German market. Conclusion, an existing NPM participation, acquired Diva-e as an add on. Around half of all NPM portfolio companies already have a strong presence in the country, either through customer sales or local offices/subsidiaries. Several are now actively seeking to expand their activities there.
The Group expanded its operational involvement by taking a growing interest in the finance and ESG aspects of portfolio companies. A number of participations were successfully refinanced, generating substantial cost benefits. ESG initiatives were embedded across the portfolio to ensure NPM achieves the most positive impact possible. And multiple value creation plans were successfully rolled out to support a more focused execution.
IFRS and CSRD requirements have made a significant impact on operations. In response, NPM is continually bolstering its team to prepare for the challenges that lie ahead.
As well as acquiring Tech Tribes and Jeco Energies, NPM successfully expanded its portfolio by strengthening current participations. Diva-e was added to Conclusion, WSiP to Infinitas, and Agrocare merged with Combivliet. The Group also divested Zorgwerk and received the repayment of shares and related dividends from SuitSupply.
Looking ahead to 2025, market circumstances are expected to improve slightly as the relatively high amount of available capital, combined with stable inflation and interest rates, result in an increase of deal activity. With a robust pipeline of opportunities, NPM looks well-positioned to continue investing and growing its portfolio.
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