|Key People||Jacob Wallenberg, Chairman; Borje Ekholm, President and CEO|
In 2006 the firm had a market value of $16 billion, making it one of the most capitalized companies in Sweden. The company operates under the concept of generating long-term attractive returns through owning and developing companies. Investor AB focuses growing companies still in the development stage by funding strategic initiatives and capturing investment opportunities by use of their cash flows. Investors realize returns through dividends paid out to shareholders on capital gains. The firm holds shares in predominantly European industrial companies.
Investor AB was established when new legislation made it considerably more difficult for Swedish banks to own stocks in industrial companies on along-term basis. The shareholdings of Stockholm's Enskilda Bank were then transferred to the industrial holding company investor.
After being listed on the Stockholm Stock Exchange in 1917, Jacob Wallenberg was elected chairman of the company. In 1992 the company merged with Providentia in what was perhaps the largest move since the firm's inception.
The firm utilizes the investing strategies of significant ownership - holding a large enough stake in a company to impact key decisions on companies' boards aimed at long term growth; investing in high-quality companies, and keeping the flexibility to act, with a leverage target of 5% tp 10% the firm has available cash resources which grant it the ability to be maneuverable.