Swedish venture capital may flee Luxembourg

After public revelations of widespread tax avoidance, Swedish capital funds are considering returning their operations in Sweden.

“All of the companies in our fourth fund will be based in Sweden,” says Tor Krusell, spokesman for venture capital firm Altor.

He says several court decisions regarding tax have gone in his firm’s favour, and so they trust the Swedish tax rules will be more favourable. But despite this he has also heard that some of his company’s investors will leave if funds are based in Sweden.

And the Nordic Capital firm says to Swedish Radio News they are even considering moving their funds to Sweden. Although financial controller Klas Tikkanen says it is too early to say, and they will probably start in Sweden before they ever end operations in Luxembourg.