Portfolio Construction

A systematic approach to building a diversified venture capital portfolio through disciplined allocation and ongoing position management.

Target fund composition

We aim to build a portfolio of 15 to 25 underlying venture capital funds at steady state. This range provides sufficient diversification to reduce single-manager risk while maintaining meaningful position sizes in our highest-conviction relationships.

Each fund commitment is sized based on our conviction level, the manager's capacity constraints, and overall portfolio balance. We do not employ equal-weighting. Position sizes reflect differentiated views on expected outcomes.

Stage distribution

Our portfolio includes exposure across the venture stage spectrum:

  • Seed and early-stage funds targeting initial commercialization
  • Series A and growth-stage funds focused on scaling proven models
  • Multi-stage funds with flexible deployment mandates

We do not target fixed allocations by stage. Instead, we allow distribution to reflect the opportunity set and manager quality in each segment. Over time, we expect a portfolio weighted toward early-stage strategies given the regional ecosystem characteristics.

Vintage pacing

We commit capital on a systematic annual schedule to build exposure across multiple vintage years. This pacing discipline mitigates the impact of any single market environment on overall fund performance.

Our commitment cadence balances new manager relationships with follow-on commitments to existing partnerships. As the portfolio matures, follow-on allocations to proven managers increase as a proportion of total deployment.

We reserve capacity in each vintage for opportunistic commitments outside the standard pacing schedule when exceptional managers or circumstances emerge.

Reinvestment approach

We evaluate re-up decisions with the same rigor applied to initial commitments. Historical partnership does not guarantee future allocation. Each successive fund generation is assessed on its own merits.

Factors influencing reinvestment decisions include:

  • Track record development since initial commitment
  • Team stability and organizational evolution
  • Fund size changes and capacity discipline
  • Continued competitive positioning in sourcing and value creation
  • Alignment of economics and incentive structures

Strong performance in prior funds increases the likelihood of continued partnership but does not determine allocation size or commitment certainty.

Exposure management

We monitor portfolio exposure across multiple dimensions:

  • Geographic concentration within the Nordic and Baltic region
  • Sector clustering when multiple managers target similar industries
  • Overlap in underlying portfolio companies across fund managers
  • Correlation between manager strategies and market cycles

Position limits prevent over-concentration in any single manager relationship. These limits apply at both the initial commitment level and on a look-through basis as funds deploy capital and valuations evolve.

We maintain transparency into underlying portfolio company exposure through regular reporting and manager communication. This visibility informs both new commitment decisions and ongoing portfolio management.