How do companies like Altor hide their wealth ?
In a region known for its robust welfare systems and commitment to equality, the ‘Nordic Paradox’ reveals a disturbing truth: wealth can be discreetly hidden through complex financial structures, often leaving wives, particularly women, in the dark during divorce proceedings. Private equity firms, combined with offshore banks, become tools not only for tax evasion, but also for financial abuse, depriving ex-wives of their rightful share in divorce settlements. How do companies like Altor hide their wealth ?
A recent tax case involving Altor Equity Partners AB, a leading Swedish private equity firm, illustrates how this manipulation works. An investigation by the Swedish Tax Agency revealed that Altor had transferred more than €71 million of ‘carried interest’ – a form of performance-based remuneration common in private equity – through a network of offshore entities located in Jersey. These funds, channelled through companies such as Altor 2003 GP Ltd and Apex Investments Ltd, were kept out of the reach of the Swedish tax authorities and, crucially, out of the hands of wives who might have been entitled to a share in a divorce.
Nordic Paradox uncovery last blog https://www.nordic-paradox.com/en/nordic-paradox-altor-yara-france-and-other-investigations/ took source from Dagens Industry’s article which used that partners case and mentioned the way that the finance man Bengt Maunsbach together with Altor fooled his wife out of at least 126 Million. Our investigation can show that is even much higher.
The Altor case and hidden assets
The investigation showed that Altor’s directors and employees – mentioned at the end of this article – although not directly associated with the offshore entities, held shares in the Jersey-based companies through personal investments. This complex arrangement enabled them to benefit from offshore financial flows while keeping these assets hidden from the Swedish Tax Agency and the divorce courts. One of the key players, Bengt Maunsbach, who joined the company in 2004 and played a key role in managing investments in several sectors, including Eleda, Gunnebo, Totem and Trioworld, under-declared his income by failing to declare this carried interest as salary, resulting in SEK 14,979,721 (€1.4 million) being added to his taxable income.
This is just the tip of the iceberg, because as a partner, the stakes became much higher. And with those higher stakes, In 2020, he both created documents to try to fool his wife into what was 50-50 marital assets to only being half of the home that he could continueto control as they owned together, and then withdrew SEK 88,000,702, secretly bought an SEK 80,000,000 flat at Strandvägen 63, and appears to own a Princess 60 yacht worth SEK 20,000,000, probably bought abroad and then brought back to Sweden. Those are just some of the lavious lifestyle from hidden wealth.
Altor also has a number of offshore holdings, including :
– Aztec Financial Services in Jersey
– GP LTD, registered under number 84811 in February 2003
– Cetez Nominees Ltd (2007)
– Aztec Nominees Ltd (2007)
– Summit Investments Ltd.
– Solero Investments in Jersey
– BMAPEX
Properties of limited partnerships :
Active – ALTOR Equity Partners is in investment fund focused on developing and investing in medium sized companies. ALTOR controls 43 companies at time of writing in Norway, Sweden, Denmark, Finland, France, USA, Germany, Chile, UK, and US. ALTOR funds have combined committed capital of circa 2’800m Euros in brands including :
Lindorff : Lindorff (now part of Intrum)
Totem Fashion : Totem Fashion
Helly Hansen : Helly Hansen
Carnegie : Carnegie Investment Bank
CTEK : CTEK
Qmatic : Qmatic
Committed capital held by ALTOR in over 20 active funds predominantly based in Jersey, including :
2003 Altor Fund Dutch No.1
2003 Altor Fund No. 1-4 (separate entities)
Fund II No.1-4
Fund II PCC
Fund II GP
Fund II Novastus PC
Fund III No. 1-3
Fund III GP Ltd
Fund III Managing LP
Fund IV No.3-4
Fund IV GP Ltd
The salaries they pay out are insignificant to their interest in the funds and companies they acquire. ALTOR main offices are split between Stockholm, Helsinki, Oslo, Copenhagen, St Helier, andZurich. ALTOR has 95 named employees however lists only 16 employees aspart of the 2020/21 audit by PricewaterhouseCoopers (PWC) PWC allocate 4.03 m Euro or 251.000 Euro per employee (averaged). PWC salary audit excludes Pension, social security, and other staff costs.
In divorce proceedings, such an arrangement poses a unique problem. When wealth is channeled through offshore jurisdictions such as Jersey, it becomes invisible in national asset declarations. For ex-spouses, this means that the financial split is artificially reduced, making settlements much smaller than they need to be. In the case of Maunsbach, the funds were distributed via a ‘general partner reserve’, a form of legal ‘protection’ often built into private equity fund agreements, masking the true value of the wealth by delaying the realization of carried interest and complicating its traceability.
Altor’s partners covered their own interests, delaying the declaration of the value of the shares to the wife, despite saying they would do so. Worse still, the ex-wife’s legal team was instructed not to submit the tax and income documents, on the pretext that a better settlement discussion might result if the information was not made public.
The Nordic Paradox in action
The ‘Nordic Paradox’ is the tension between the region’s progressive social policies, which promote gender equality, and the reality that tools of financial manipulation, such as offshore banking, often shield the wealthy from the social responsibilities these policies promote. In a society where transparency is highly valued, private equity executives can exploit loopholes to protect their assets from divorce settlements and taxes.
Many chose to reside in Monaco or Switzerland in order to shield their earnings in that way leaving Sweden to live in tax free places. But those who remain, and socialize with those who leave also are benefiting from this secrecy and control.
Bengt Maunsbach, protected by Altor
In this particular case, wives do not have access to the tax, economic and legal support that executives enjoy in the course of their work. Nor do they have the financial means to obtain the necessary legal support when they realise they need it, or the fighting capital for the battle ahead. As the UK lawyer group details in their report on PE as the new Big Money Divorces. One lawyer interviewed as part of this survey said that he would not advise a client to take on Altor Equity Partners because they have too much fighting capital.
Besides the fact that the club is protecting each other, as is clearly illustrated in the Maunsbach divorce case, with Bengt Maunsbach recieving getting the right matrimonial and funds advice, while extreme limiations were placed on his wife by ensuring she had access to zero in her bank account, and no lawyer while he mastermind paperwork and retain control through access to all of the matrimonial funds- it is the PE remuneration structures that make PE divorces unique, and why having advice not only from a matrimonial lawyer, but a funds lawyer too, is of fundamental importance. Bankers have traditionally received bonuses annually – but carry entitlement is awarded up front, with frequently decade long horizons for payout there is not a way for the spouse to be aware of where the marital assets are in the maturity level when sheltered in the off-shore account.
Team Altor
Harald Mix (Partner), Bengt Mausbach (Partner), Stefan Linder (Partner), the three main partners, followed by Andreas Källström Säfweräng (Partner), David Hess (Partner), Giovanna Maag (Partner), Hajo Krösche (Partner), Herman Korsgaard(Partner), Jens Browaldh (Partner), Johan Reiersen (Partner), Jonatan Lund Kirkhoff (Partner), Klas Johansson (Partner), Lars Fromm (Partner), Mattias Holmström (Partner), Paal Weberg (Partner), Petter Samlin (Partner), Rune Wichmann (Partner),Søren Johansen (Partner), Øistein Widding (Partner).
Since inception, Altor funds have raised more than EUR 11 billion in total commitments. The funds that Altor manage have invested in almost 100 companies, focusing on medium-sized predominantly Nordic and DACH companies with the aim to create value through growth initiatives and operational improvements. Altor Fund VI, being the largest fund raised by Altor to date, qualifies as an Article 8 fund and will invest in companies promoting environmental or social characteristics. The fund is backed by a strong investor base of pension funds, insurance companies, foundations and family offices.
https://www.privateequityinternational.com/swedens-tax-clampdown-carry-sparks-fund-backlash
Assisting Bengt Maunsbach, was Adalbjörn Steffanson, Partner, Head of Investor Relations at Adelis Equity Partners, who in his role as has been a spokes person for tax clapdowns. ‘Regarding the taxation of carry, the rules are complex and there are some exceptions.
https://www.privateequityinternational.com/swedens-tax-clampdown-carry-sparks-fund-backlash
Sweden’s top court passed its final judgment in a decade long legal battle that had pited a number of big nordic private equity firms against the country’s tax authority over how carried interest should be treated. In a judgment that went against firms such as Altor EQT, Nordic Capital, the court ruled in favor of the Swedish Tax Authority and has resulted in ‘Complete mistrust of the Swedish court and this loss of faith affected decision whether to go off shore. Adalbjörn Steffanson well-versed on such financial structures and use of offshore accounts was scheduled to speak at the divorce hearing of Maunsbach vs Maunsbach/Wing court that he felt that the amount Bengt Maunsbach decided his wife was worthy and on things that he would have no knowledge of such as the state of her mental health, although he only met her once a year in a social situations.
Altor Equity Partners has promoted its commitment to fair policies, sustainability, and ethical business practices. However, in this marital case involving Bengt Maunsbach, concerns have arisen about whether financial transparency and fairness have been upheld. According to available information, Altor advised against publishing Maunsbach’s financial records, impacting his spouse’s ability to negotiate a fair settlement. Consequently, she faces financial constraints and struggles to secure even a substantially downsized residence, due to his control over shared assets and structured installment payments over several years, reportedly not reflective of available assets. The situation has also raised questions about undisclosed wealth possibly held in offshore accounts, which complicates the asset division further and challenges the principles of fair financial treatment.
In a recent debate piece owner of Altor, ties his commitments to Green Companies one debate Henrik Jonsson rightly phrased it by saying It is true that we risk losing the foundation for Sweden’s prosperity – but that is because of the senseless green billion rolling and the hysterically driven dreams of change.It is high time that the brother-in-law capitalist oldboy gang around Mix sat down and were ashamed.I’m hammering home my thesis now so you know someone “saw it coming” : The climate goals are a technical, economic and political fantasy that is impossible to achieve in its current form.https://www.di.se/debatt/ar-sverige-for-litet-for-satsningar-som-northvolt-och-stegra/
It is interesting to see that Bengt Maunsbach has held 7 positions as director at companies acquired by ALTOR which highlight their ethos of integrity and accountability, assuring stakeholders that the company is dedicated to doing the right thing for both people and the planet.including:
Gunnebo AB
- Website : https://www.gunnebo.com
- Gunnebo specializes in security solutions, including safe storage and entrance control systems
OptiGroup AB
- Website : https://www.optigroup.com
- OptiGroup provides business essentials and offers a variety of products across segments like facility solutions, packaging, and printing materials.
Haarslev Industries
- Website : https://www.haarslev.com
- Haarslev specializes in processing technology, mainly for handling animal by-products and organic waste.
REALIA Group OY
- Website : https://www.realia.fi
- Realia Group is a Finnish property management and real estate services company with operations throughout the Nordic and Baltic countries.
Trioplast Industrier AB
- Website : https://www.trioplast.com
- Trioplast focuses on innovative and sustainable plastic packaging solutions.
Meyn Food Processing Technology BV
- Website : https://www.meyn.com
- Meyn is a leader in poultry processing technology, providing equipment and solutions for the poultry industry.
Trioworld Industrier AB
- Website : https://www.trioworld.com
- Trioworld offers a wide range of plastic packaging solutions across various sectors, focusing on innovation and sustainability.
Alo Group AB
- Website : https://www.alo.se
- A global leader in front loaders and implements for tractors, Ålö Group provides solutions under several brands for farming and construction equipment.
Tyuio Group AB
(attach pdf of tax statement)
The disparity can be clearly seen by the lifestyle of those working at Altor. During the marriage, Bengt Maunsbach used dividends of 88 Million SEK to secretly purchase and totally renovate over 2 years the Strandvägen 63 home that he resides in. It makes you wonder, how could the Apartment of Bengt Maunsbach be bought in secrecy from his entire family, and totally renovated from Wrede relator. https://www.wrede.se/objekt/vaning-ostermalm-strandvagen-63/
Large yachts such as the Princess S66 Class boat, which is possibly named Centurion, and
moored at time of writing in Djurgarden was most likely sold by Thomas Millstram primary business reselling maritime vessels with low-moderate revenues due to position as a reseller.
Ina Marina https://www.yachtworld.com/yacht/2018-princess-s60-9072725/ 2 Million Euros vessels can be purchased off-shore countries and used by the executives as one way to not bring the wealth into Sweden, and in effort to keep the wealth from spouses in time of divorce, as was the case with Bengt Mausbach.
While these illustrated assets are pennies to the hundreds of millions that were stolen from the exwife – it can help to show the loss of entire support structure and community that is placed on those who are taken advantage of in this way.
Altor advised lawyers not to submit the finances of Bengt Maunsbach in the court evidence inorder for his wife to get a better settlement discussion. This discussion never came. Instead she was pushed to sign an agreement that is 2% to 98% of the marital wealth under sever financial duress. It is shocking that from a comfortable life savings, she is currently is unable to secure finances needed to get a severely downsized 50m apartment – as Bengt Maunsbach and team have helped him to keep control of the finances through co-ownership of her one granted asset and by paying her a in small installments over 7 years what was not even a portion of the available assets in the the accounts – not considering the large amounts as described by this investigation on the use of off-shore accounts to hide wealth.
As outlined in the first report on this case, immediate and complete revision of the divorce documents, otherwise it would send shockwaves through Altor Equity Partners and beyond. Information and facts that have so far been withheld would undoubtedly arouse public indignation. They would shed light not only on the actions of the individual concerned, but also on the corporate culture that allowed such practices to take place.
Voices would then be raised calling to account not only the executive in question, but also the entire management of Altor Equity Partners, which would be accused of tacit complicity. This case could mark a turning point in the way private equity firms are perceived and in the rigour with which they are held to account for their actions.
When corporate power threatens justice
The start of an investigation sheds a harsh light on a world where money and influence can distort reality, manipulating personal situations to turn them into demonstrations of power. The case of Sek’s billion-dollar divorce, which involved Bengt Maunsbach, a senior executive of Altor Equity Partners, is a striking example of how corporate power can undermine justice. Especially when those who are supposed to protect fairness turn a blind eye to unquestionably and ethically dubious maneuvers.