Hawk Infinity: the world’s fastest-growing HoldCo you have never heard of

Disclaimer: Unless noted otherwise, views and analysis expressed here are the author's own and based on public sources. The article is intended for informational and entertainment purposes only. This is not financial advice. Please consult a professional for investment decisions.

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Utter the phrase “Norwegian software HoldCo”, and what comes to mind? I bet Visma - the $3B ARR behemoth that we covered last year.

No doubt, Visma is the software M&A powerhouse in Europe. It has skilfully expanded beyond the Nordic heartland first to Benelux and now to Iberia, whilst remaining laser-focused on accounting, payroll and HR solutions.

However, Visma has been around for 20 years and it is backed by Hg, a deep-pocketed private equity firm. 

Judging by the feedback on last month’s Röko article (TL;DR: 6 years to get $600M+ revenue, 10x return for the early investors), you guys love nothing more than a scrappy challenger.   

Rejoice: I have a few in the pipeline. As we count down to the next Software Summit in London on 6 May (signup link), it’s time for another incredible Nordic aggregator. One that seemingly came out of nowhere. One that, after 25 acquisitions completed last year, has crossed $100M in EBITDA, and is poised to double that figure in a year’s time (note: through the article, we are using illustrative NOK:USD FX of 10:1).

Meet Hawk Infinity: a Norwegian serial acquirer that grew from a single asset to a $100M in EBITDA. In under a decade and with limited dilution along the way. Today, software businesses represent 80%+ of Hawk’s NAV / earnings, concentrated largely within the flagship Hawk Infinity Software (HIS) unit.

HIS is the focus of this article due to its size and public profile - a consequence of having listed bonds. HIS growth trajectory looks like this: 

Read on to learn:

1. Hawk’s investment philosophy - and how it differs from other HoldCos 

2. Who’s behind Hawk Infinity? How did it all begin?

3. HIS 5-step playbook for growing from $3M to $200M+ in revenue

4. What does HIS’s capital stack look like in the absence of a sponsor

If you looking to build your own HoldCo - or to network with fellow serial acquirers, join us in London on 6 May for the Software Serial Acquirers Summit. Get your ticket here - we are down to the last 10!  Here’s a shoutout to our longtime supporter, Sourcescrub:

1. Hawk’s investment philosophy - and how it differs from other HoldCos

The world is awash with decentralised software HoldCos. Most appear to follow Constellation’s tried-and-tested playbook, which we detailed in this article. Inflating maintenance prices. Cranking up Professional Services (which run on 50%+ margins). And, of course, slashing costs. 

Not Hawk - which is at pains to emphasise its founder-friendly ownership and operating models. No significant changes or transformation post-closing. No cost-cutting or forced integrations. But no departing founders either. As Joakim Karlsen - a Hawk partner and the Hawk Infinity Software CEO, told me:  

2. Who's behind Hawk Infinity? How did it all begin? 

Hawk Infinity’s sprawling portfolio is best explained as an industry agnostic HoldCo weighted towards software and digital solutions. To quote Joakim Karlsen once again, Hawk is “an investment vehicle that prefers asset-light, cash flowing businesses with loyal customers”.  

Then again, who doesn’t? 

A review of Hawk’s non-software holdings reveals “a world leader in life extension and repair of electrical cables” (Fire Security - see below); a digital health provider (Nettlegevakt); and a food packaging company (Maskinpakking).  

Hawk’s TopCo is called Hawk Infinity AS and is controlled by the former equity analyst Johan Michelsen and his wife Marianne. Directly and indirectly, the Michelsens hold a 30%+ stake. Hawk’s first incarnation, in 2008, was a family office. In 2016, the Michelsens opened up to a small number of Norwegian investors, including Gasmann Invest - the investment vehicle of the Brotts, a Norwegian family with a background in property development. 

The fresh capital was deployed across a variety of asset classes, including public markets; venture; and private equity. Hawk’s first control deal - a cloud storage provider called Jotta - dates back from 2016. Jotta turned out to be a highly lucrative investment…but let’s not get ahead of ourselves. 

By 2020, the combination of cash proceeds from the exited non-control investments and Jotta’s increased leverage capacity fuelled Hawk’s transformation into a modern-day Visma or Constellation Software. Hawk’s approach to capital scarcity is instructive. In a strategy that lends itself to raising a lot of money from institutional investors from the get-go (think Everfield or Arcadea), Hawk took the gradualistic approach that allowed it to retain control.   

Mr. Michelsen (age 51, pictured below right) remains actively involved with HIS as well as other Hawk Infinity portfolio companies. He recruited HIS CEO Joakim Karlsen (age 38, pictured below left) from an investment bank as the first outside hire. The HQ team has since grown to 20. 

The bankers’ sell-side nous is evident from the manner in which HIS communicates its financials:

Hang on - Hawk didn't exist back in 2011, did it?

You are right: these are pro forma figures. HIS’s actual results are much lower, reflecting the blistering pace of M&A: 

Some of our readers may take issue with this creative approach as it consolidates all of HIS current businesses, irrespective of the year acquired. Perhaps. But you know what? Your IR better be convincing if you plan on piling on 4+ turns of senior debt (NOK 2.2B / $200M+ at YE2024) without a deep-pocketed PE standing by. 

And to be fair, HIS’s underlying performance has been strong, as evidenced from a 22% like-for-like growth in 2024; and c.100% cash conversion (operating cash flow / EBITDA) in 2023 and 2024.   

3. HIS 5-step playbook for growing from $3M to $200M+ in revenue

Step 1: Jotta, Deal #1. The Hawk spreads its wings!

A Norwegian press article from 2021 eloquently describes HIS beginnings: “In 2016, [Johan Mikelsen] bought the growth machine Jotta on a bargain sale, and is now sitting on a huge profit”. 

Well, sort of. Here are the facts. 

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