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AROS KAPITAL

Meticulous, cautious – but
open to new business

Many companies still have a major need for financing, but
opportunities have diminished as the environment has become more
unstable, interest rates are higher and the level of caution is greater.

Aros Kapital conducted a review of its offering in 2023 in order to
remain a partner for growth and development.

For Aros Kapital, 2023 was markedly an investment year. The construction projects have been delayed or rendered much more
change management program initiated in 2022 when Erik expensive. As interest rates have risen, many condominiums have been
Berfenhag took over as CEO sharpened the focus on internal converted into rental apartments. Overall, this has led to a need for
business management and enhanced control functions. At the same extensions and increased limits on development finance credit lines.
time, the company has consolidated and diversified its offering to
better meet customer needs. Despite greater uncertainty in the market, Aros Kapital cooperates with the Swedish National Board of Housing,
the company is positive about the future. Building and Planning, which offers guarantees to banks that finance
the construction of affordable rental housing in typical small, growing
FOCUS ON COMPLIANCE AND EFFICIENCY cities. During the year, the company helped finance new housing in
Borås, Norrköping, Uppsala and Skara.
As a credit market company, Aros Kapital conducts its operations
under the supervision of Finansinspektionen, the Swedish Financial GUARANTEEING GROWTH AND DEVELOPMENT
Supervisory Authority. At the end of 2023, the company received the
authority’s decision on the audit conducted for the 2018–2021 financial Greater uncertainty reduced the risk appetite of many lenders in
years. The decision involved imposing a penalty that was considered 2023. Established banks remained cautious in their lending behavior
sufficient in view of the extensive program of measures implemented and focused on their large customers. This opened up the market to
by the company since 2022. The Board was both expanded and smaller, agile alternatives.
renewed, and a new management team was appointed to implement a
comprehensive change management program. The organization was “We can see huge potential for growth, as we’re small compared to
strengthened in all areas and major investments were made to secure the big banks,” says Erik Berfenhag. “We have an important role to play
processes and procedures in areas such as granting credit, anti-money in business and society. There will be a greater need for different types
laundering and internal governance and control. of financing, other than from the major banks, to guarantee continued
growth and development.”
“The company’s internal culture is currently business-oriented with
a focus on compliance and risk management,” says Erik Berfenhag. Today, Aros Kapital has around 100 employees and operations
“Being a good partner for companies means we need to be able to in Sweden, Norway and the UK. All markets grew in 2023 and sales
manage business risks. The investments we made during the year have amounted to approximately SEK 763 million. Going forward, Aros
made us more professional and efficient in our business.” Kapital will continue to grow in all markets, albeit not at the same pace
as in recent years. Erik Berfenhag remains positive about the future:
SUSTAINABLE LENDING FOR JOBS AND HOUSING
“We mustn’t forget our customers, and we can see that many
Today, Aros Kapital’s business is mainly based on corporate loans and companies are struggling with the new higher interest rates. This
real estate financing. The company offers SMEs different types of loans means we need to be meticulous and cautious, but we also need to
to expand, invest, reorganize or address temporary difficulties. Small show that we are open to business.”
businesses are offered EU-supported loans on favourable terms, with
lower personal guarantee requirements and more favourable interest Erik Berfenhag, CEO
rates. The loans are often a prerequisite for continuing business
operations.

“Our focus is on sustainable lending,” says Erik Berfenhag. “We
provide loans to SMEs where needed, to create jobs or to buy new
machinery, but we don’t over-finance.”

Developments in the real estate market in recent years have
accelerated the need to clarify the company’s real estate offering. Aros
Kapital currently offers real estate financing for acquisitions or for real
estate development, such as the construction of new commercial or
residential properties. Many real estate developers have found that

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