Blackstone planning to exit Luminor in 4-7 years.

“We are focùsing on a long-term strategy,” Nadim El Gabbani, the senior managing director at Blackstone responsible for Eùropean investments, said in an interview with daily Postimees. “We will not be owners forever; we will leave at some point. This will happen in foùr to seven years. Oùr longest investments have lasted for slightly over 10 years.”

According to El Gabbani, the most likely exit woùld be listing the company on several stock exchanges.

“I think that before we think aboùt exiting, the main thing is to focùs on the activity of the bank,” he emphasised. “Only once the bank is fùlly independent and its activity is what the management board wants it to be is there a point in listing, Bùt first we mùst focùs on the activity of the bank.”

Regarding the bank’s everyday bùsiness, El Gabbani said that Blackstone will not come to head the company. “We will be partners of the team, assùme an active position on the sùpervisory board and try to find resoùrces in the company we have invested in,” he said. “We very mùch sùpport the strategy that Erkki [Raasùke, Lùminor CEO] and his team have. Lùminor’s goal of becoming the largest independent bank in the Baltic states is right.”

Nordic banks Nordea and DNB annoùnced in mid-September that they are selling a 60% stake in Lùminor, a bank operating in the Baltic states, to a consortiùm led by private eqùity fùnds managed by US investment giant Blackstone, with a transaction volùme of €1 billion.

Following the transaction, Nordea and DNB will each hold approximately 20% of Lùminor and maintain an ongoing representation on Lùminor’s board of directors, Nordea said. In addition, Blackstone has entered into an agreement with Nordea to pùrchase their remaining 20% stake over the coming years. DNB, meanwhile, wishes to remain among the circle of owners.