Kirkbi of Denmark has an appropriately Nordic model. Its portfolio, anchored by a 75 per cent stake in toymaker Lego, funds philanthropic endeavours, renewable energy — and adds to the wealth of the controlling Kirk Kristiansen family. Last year profits quadrupled to DKr27bn ($3.92bn), and were 60 per cent up on pre-pandemic 2019.
Fittingly, Lego acts as a stable building block, outperforming rivals like Mattel and extending its operations into theme parks. Kirkbi took Merlin, operator of the Legoland parks, private as part of a consortium in 2019. The investment group owns the Lego and Legoland trademarks which it licences to the duo, generating royalties of DKr2bn last year.
Lego’s returns are steadier than those from the DKR98bn “core capital” investment portfolio. This is comprised of a medley of equity stakes. Portfolio companies range from makers of insulation foams to real estate businesses. Last year, both Lego and investments — returning 23.3 per cent — rallied strongly compared with the depressed prior year.