NAXS Q2 2025 presentation: NAV declines 4.8% quarterly, maintains 1.8% annual growth

Introduction & Market Context

NAXS Nordic Access Buyout Fund AB (NASDAQ:NAXS) released its Q2 2025 presentation on August 5, 2025, revealing a quarterly decline in net asset value (NAV) amid challenging market conditions. The investment company, which focuses on the Nordic private equity market, reported a 4.8% decrease in NAV during the quarter, though it maintained a 1.8% increase over the trailing 12-month period.

The company’s stock closed at 57.8 SEK on the presentation date, representing a 1.04% decline for the day, but showing improvement from the 54.60 SEK closing price reported at the end of Q2 (June 30, 2025). NAXS continues to trade at a significant discount to its NAV, potentially representing a value opportunity for investors.

Quarterly Performance Highlights

NAXS reported an equity (NAV) of 812 MSEK, equivalent to 73.32 SEK per share, as of Q2 2025. While the NAV decreased by 4.8% during the quarter (including dividend paid), the company maintained a positive 1.8% growth over the 12-month period.

As shown in the following chart tracking NAV development over the past four years, NAXS has experienced fluctuations but maintained relative stability compared to market volatility:

The company’s private equity fund investments and other direct investments totaled 591 MSEK, representing 73% of equity. NAXS maintained a strong liquidity position with net cash of 220 MSEK, accounting for 22% of equity. The significant cash position provides flexibility for future investments while serving as a buffer against market volatility.

The key financial metrics for the quarter are summarized below:

A notable aspect of NAXS’s valuation is the 25% discount to NAV as of June 30, 2025, with shares trading at 54.60 SEK compared to the 73.32 SEK NAV per share. This discount has narrowed slightly based on the August 5 closing price of 57.8 SEK.

Portfolio Composition and Strategy

NAXS maintains a diversified portfolio approach, with investments spread across 12 active private equity funds managed by 7 different managers. This diversification provides exposure to large, mid, and small-cap segments of the Nordic market.

The company’s portfolio encompasses 63 active portfolio companies as of Q2 2025. Since inception, NAXS has acquired interests in 193 portfolio companies, with 129 fully exited, generating an average internal rate of return (IRR) of 17%.

The following slide illustrates the company’s diversified exposure and highlights its direct investment portfolio:

The fund portfolio, representing approximately 73% of NAV, includes investments in prominent private equity funds such as Apax (HN:IBC) Europe VII LP, Nordic Capital Fund X LP, and JAB Consumer Fund. These investments provide NAXS with exposure to a wide range of sectors and geographies, primarily focused on the Nordic region.

In addition to fund investments, NAXS maintains a direct investment portfolio representing approximately 8% of NAV. These investments include both listed companies such as Krispy Kreme (NASDAQ:DNUT) and unlisted entities like Jacktel AS.

The company’s portfolio includes several recognizable consumer brands that provide tangible examples of NAXS’s investment strategy. As illustrated below, these brands include Krispy Kreme, Pret Natural Food, Espresso House, and others:

NAV Development and Dividend Policy

NAXS has demonstrated a commitment to shareholder returns through its dividend policy, which targets distribution of 50-75% of profit after tax. For the current period, the company approved a dividend of SEK 4.25 per share, representing 5.8% of NAV and yielding 8.4% based on the share price.

The NAV development chart reveals a pattern of growth from Q2 2021 (65.66 SEK) to a peak in Q2 2023 (86.95 SEK), followed by a decline to the current level of 73.32 SEK in Q2 2025. Despite recent declines, the NAV remains above 2021 levels, demonstrating long-term resilience.

The company’s investment policy maintains flexibility while focusing on the Nordic private equity market. Up to 40% of NAV can be invested in any securities, providing the management team with latitude to pursue opportunistic investments outside the core private equity fund strategy.

Forward-Looking Statements

While NAXS faces near-term challenges reflected in the quarterly NAV decline, the company’s diversified portfolio and significant cash position provide stability. The 25% discount to NAV suggests potential upside if the gap narrows through either NAV growth or share price appreciation.

The company’s track record of successful exits (129 companies with an average IRR of 17%) demonstrates the effectiveness of its investment approach over time. Media coverage highlighted in the presentation indicates continued portfolio activity, including acquisitions and exits that may impact future performance.

As NAXS navigates the current market environment, investors will be watching for signs of stabilization in NAV and potential narrowing of the discount to book value. The company’s dividend policy continues to provide an attractive yield while the management team works to enhance long-term shareholder value through active portfolio management.

Full presentation:

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