NORWAY Trends and Developments Contributed by: Peter Hammerich, Sebastian Seeger and Didrik Krohg, BAHR
has so far only presented a draft bill for its imple - mentation; and • the revisions to the Alternative Investment Fund Manager (AIFM) Directive (AIFMD 2.0), which are still awaiting a draft bill in Norway – making it unlikely that the transposition deadline in the EU (16 April 2026) will be met in Norway. For 2025, further delays in the legislative process will be caused by the upcoming election of the Norwegian Parliament on 8 September. However, legislation can also be fast-tracked, as shown recently with the adop - tion of the Digital Operational Resilience Act (DORA), which entered into force on 1 July 2025 – only six months later than in the EU. In practice, this means that private equity managers should be on the lookout so as not to miss any fast-tracked or delayed regula - tion in Norway. Opportunities presented by AIFMD 2.0 AIFMD 2.0 stands to transform Norway’s private lend - ing environment by creating a dedicated regulatory framework for loan-originating alternative investment funds. This will open up an entirely new market insofar as investment funds are effectively banned from direct lending in Norway due to a banking monopoly, and where the ban is upheld more strongly in Norway than in most EEA jurisdictions. This development is especially relevant for private equity sponsors looking to diversify deal structures or offer direct lending solutions as part of an integrated investment platform. Essentially, it would grant private equity managers full market access to originate loans, placing them on an equal footing with established Norwegian banks and unlocking fresh opportunities for growth in the Norwegian credit market. Advantageous Conditions for Foreign Investors Continuing depreciation of the Norwegian Krone, especially against the Euro and US dollar, has cre - ated advantageous conditions for foreign investors. A study commissioned by the state-owned private equity manager Argentum shows that the proportion of non-Nordic investors in the Nordics reached an all- time high of 36% in 2024. The Nordic private equity market also hit new records in 2024, with EUR20.8 billion invested across 134 companies – 56% of which
targeted Norway – largely propelled by the Adevinta acquisition, one of the region’s biggest recent trans - actions. From a sector perspective, information and commu - nications technology (ICT) remained the top sector in 2024, with 48 deals. The industrial and consumer sectors (ranked second and third) declined in invest - ment count, while healthcare and life sciences and infrastructure saw significant upticks. Nordic buyout funds collectively raised EUR14.6 billion in 2024, over twice the previous year’s total. Although 2025 totals may be more modest, fundraising remains strong by historical comparison. More Complex “Hybrid Products” Norway continuous to experience a trend towards more complex “hybrid products”, meaning a combi - nation of different strategies. Examples include: • co-investment at the portfolio level alongside tradi - tional fund investments; and • primary plus secondary investments with the same manager (so-called stapled secondary transaction). Such hybrid products require greater attention to structuring, drafting and negotiations to balance the interests of sponsors and investors. However, they also offer opportunities to combine the benefits of dif - ferent strategies for investments, tailored to changing market conditions. Continuation funds have also gained momentum, offering managers an opportunity to extend the tradi - tional lifetime to realise the full value of certain invest - ments while investors can (partially) exit their fund investment or reinvest in the continuation fund. The authors have already seen more continuation funds – notably with Equip Capital and FSN Capital launching their first continuation vehicles in 2024 – and expect that an increasing amount of fund managers, including smaller ones, will capitalise on the economic benefits
of this structuring option. Oil, Gas and Sustainability
The petroleum sector underpins much of Norway’s economic output and has historically attracted a num - ber of private equity sponsors, including HitecVision,
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