M&A activity is in full swing

With a single platform and 20 add-on acquisitions this year, 2025 marked an important phase of development. Add-ons enable us to expand our products, services, and technologies, enter new geographies, and strengthen management teams. They are also a cornerstone of our green growth strategy—enabling both the expansion of our capabilities and a greater footprint in the sectors we have already entered. As a result, many of our Fund II and Fund III portfolio companies have undergone a transformation—a clear indication of the added value our leadership brings.

While our M&A activities are intended to generate financial returns, they are equally focused on building more resilient businesses that can navigate climate change and other external pressures while making a positive contribution to a changing world. Each add-on is like a LEGO piece; different in size, maturity, and sustainability experience, but together forming a stronger whole. Over time, our role is to align these companies with the rest of the group, thereby improving overall performance.

During the year, we also completed one new platform investment for Fund III: 3Button Group. This marks our first foray into industrial automation, a strategically important sector given the growing demand for efficient, sustainable production and the gradual return of manufacturing to Europe.

Measure, measure, measure

Despite some global pushback against ESG—particularly in the U.S.—we do not see a move away from taking responsibility, but rather a shift as the market enters a more mature phase. Today, investors are less interested in sustainability “for its own sake” and more focused on measurable impact. Our role is to lead the way in gathering and calculating clearer, more tangible data so that our portfolio companies can stay on track in their journey toward offering increasingly sustainable solutions.

Our new Natural Capital Framework (see pages 20–21) is designed to address this shift. By translating environmental damage or efficiency into financial terms—whether as a cost or a benefit—we can better understand, compare, and communicate the value created. While metrics such as tons of CO₂ reduced, kilowatt-hours saved, or tons of landfill avoided can feel abstract, everyone understands what a krona or a euro means. This approach creates a unified language for strategy, customer dialogue, and exit preparation.

Our presence in Europe—particularly in the Nordic region—also strengthens our position. This region is increasingly viewed as a leader in sustainability efforts, and we have observed growing interest from U.S. investors who remain committed to supporting the green transition and are seeking opportunities beyond their own market.

Staying on track for the future

The entire Alder has made 2025 a year to be proud of. We were thrilled to welcome two new Investment Analysts and two new Investment Managers, further strengthening our capabilities and expanding the team’s expertise.

Alder 2026 with greater expertise, upgraded tools, and a more mature portfolio. We are seeing consistent growth across our portfolio companies and are eager to see the Natural Capital Framework translate into even greater traction for customer propositions, operational priorities, and exit narratives. For us, investing in impact-led innovation has never been about following trends, but about doing the right thing backed by science. So, regardless of how global attention ebbs and flows, doing the right thing will remain firmly at the core of our investment decisions and strategy.

“We needed a way for each business to assess the value of their solutions and translate environmental impacts into a more common, relatable language,” explains Eva Normell, Sustainability Officer at Alder. “The natural capital concept allows you to translate both positive and negative effects into a financial value. When you monetize it, suddenly our companies, investors, and customers can understand what it means. Even though price isn’t the most important factor, it helps people understand the outcomes and gives everyone a common language, which we can use to track and compare progress.”

We have developed a framework for translating quantified environmental impact (e.g., avoided CO₂e, reduced waste, and improved resource efficiency) into financial value using transparent assumptions.

Portfolio level

Every investment must ensure that at least 50% of the sales are linked to green activities, with a goal to increase the sales of green activities by 100%, actively driving more capital towards sustainable initiatives.

Spring 2025 began with a platform investment in 3Button Group AB (3BG), in which we became the majority owner. This innovative Jönköping-based company is a leading provider of industrial automation solutions. They combine robotics, mechanics, and control systems to deliver solutions that automate and improve manufacturing processes. 3BG enables more efficient manufacturing, reduced waste through optimized production, improved end-product quality, and energy savings. Since our investment in March, they have already added one new subsidiary, bringing the Group to five companies, each with niche but complementary offerings.