Target Company Overview

Mandatum Asset Management's (MAM) Growth Equity II fund has announced an investment in Epical, a leading data consulting company in the Nordic region. Epical aims to establish itself as the most trusted and innovative data consultancy in Northern Europe. With expertise in data management, utilization, and protection, Epical stands as a key player in the data consulting market.

Founded in Sweden, Epical operates ten offices across Sweden and Finland, serving over 400 clients spanning various sectors, including both private and public entities. In 2024, the company's revenue reached EUR 46 million and it employs approximately 400 digital experts. This investment will further enhance Epical's service offerings and fuel its growth aspirations.

Industry Overview in the Nordic Region

The data consulting industry in the Nordic countries is experiencing significant growth, spurred by increasing demand for data-driven business solutions across various sectors. Companies are increasingly recognizing the value of data and the necessity of expert consultancy to harness it effectively. This trend is particularly pronounced in industries such as finance, healthcare, and technology, where data plays a pivotal role in driving innovation and operational efficiency.

As organizations seek to navigate the complexities of data management and analytics, the expertise of specialized firms like Epical becomes crucial. The growing emphasis on data privacy and compliance with regulations adds another layer of complexity, requiring businesses to engage consultants who are well-versed in both technology and legal frameworks.

The competitive landscape in the Nordic data consulting market is characterized by a blend of established players and emerging startups. Firms that can offer scalable solutions while maintaining a focus on customer relationships are likely to excel in this evolving environment. Additionally, the increasing incorporation of artificial intelligence and machine learning into data consulting services presents new opportunities for growth and innovation.

Rationale Behind the Deal

This EUR 22.5 million investment is a significant step in Epical’s growth trajectory, enabling the firm to accelerate its development in the Nordic market. The participation of Mandatum Asset Management, alongside current sole owner KPY, is expected to strengthen Epical’s position as a market leader and an appealing employer in the data consulting sector. The influx of capital will support the enhancement of existing services and facilitate the exploration of potential acquisitions to further expand Epical's reach and capabilities.

Investor Information

Mandatum Asset Management operates a Growth Equity strategy focused on scaling Finnish and Nordic growth companies. Their approach involves active ownership, providing expertise, networks, and flexible growth capital to businesses with proven business models and ambitious leadership. Mandatum has engaged with various successful companies, demonstrating a strong track record in fostering growth and internationalization.

As a prominent player in the Nordic investment landscape, Mandatum's Growth Equity II fund is dedicated to developing its portfolio companies to facilitate growth and expansion. By offering minority capital solutions, Mandatum helps companies access the financing they need while providing liquidity options for owners. Their strategic focus positions them well to capitalize on the burgeoning demand for data consulting services.

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From an investment perspective, the partnership between Mandatum Asset Management and Epical is highly promising. The Nordic data consulting market is ripe with potential, and Epical's established reputation as a leading firm provides a solid foundation for growth. The strategic support from Mandatum, particularly in terms of operational expertise and access to networks, could prove invaluable as Epical pursues ambitious growth goals.

The continued emphasis on data-driven decision-making across industries underlines the relevance of Epical's services. With a team of skilled professionals and a committed leadership structure, Epical is well-positioned to capitalize on the growing demand for data consulting. Furthermore, the endorsement from Mandatum serves as a strong validation of Epical's business model and future prospects.

Overall, the investment is expected to bolster Epical's competitive stance in the industry, enabling the company to enhance its service offerings and expand its market presence. The collaborative approach between Mandatum and KPY, alongside the robust demand for data consultancy, suggests that this investment could yield significant returns in the medium to long term.

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