DENMARK Trends and Developments Contributed by: Dan Moalem, Jakob Skafte-Pedersen, Poul Guo and Thomas Enevoldsen, Moalem Weitemeyer
Moalem Weitemeyer Amaliegade 3–5 DK-1256 Copenhagen Denmark
Tel: +45 7070 1505 Fax: +45 7070 1506 Email: jakob.skafte-pedersen@moalemweitemeyer.com Web: moalemweitemeyer.com/home
The Latest in Private Equity in Denmark in 2025 Introduction Private equity in Denmark remains subdued, with limited transaction activity and widespread hesita - tion. Despite expectations of renewed momentum in 2024, market sentiment has softened further due to continued geopolitical instability, tariff uncertainty, and volatile macroeconomic indicators. Even with structural strengths such as legal predict - ability and a digitally capable workforce, dealmaking is often paused or fails to initiate. Fund managers, under pressure to deploy capital but faced with lim - ited exit options, are increasingly utilising continuation vehicles. While sector-specific activity persists in areas like software, healthcare and infrastructure, overall market volume remains below the historical norm. Macro landscape The broader macroeconomic environment in Denmark remained relatively stable through 2024. However, this stability has not translated into a corresponding level of private equity activity. Despite low unemployment and sound public finances, market participants con - tinue to face significant uncertainty. Ongoing geopo - litical tensions, trade-related frictions including tariff developments, and evolving global supply chain con - figurations have made it difficult for investors to com - mit capital and make long-term investment decisions. Over the past 18 to 24 months, Danish private equity activity has remained subdued. Several M&A process - es have been paused, abandoned, or never launched
at all. Traditional transaction volumes are lower than in prior years, and the appetite for risk among financial sponsors has decreased accordingly. Continuation vehicles and other secondary structures are increas - ingly used as alternatives to full exits, reflecting the broader hesitancy in the market. The structural characteristics of the Danish economy contribute to a relatively predictable environment for private equity activity. These include: • an educated population with widespread digital literacy and strong English proficiency; • a stable regulatory and political environment, with consistent legislative development; • a corporate income tax rate of 22%; • a mature financial sector with reliable access to debt and banking infrastructure; and • a “flexicurity” labour market model, allowing companies to efficiently adjust workforce size and composition. These features provide a framework that supports transaction predictability and facilitates execution planning, particularly with long-term capital and inter - Over the past 12 to 18 months, private equity activity in Denmark has primarily been focused in the follow - ing areas. • Technology and software remain a core focus for private equity investors. Danish tech assets are often characterised by strong engineering talent, national scaling investment strategies. Deal activity, structure and sector focus
161 CHAMBERS.COM
Powered by FlippingBook