A profitable exit from Digital Illusions

2M Invest has generated a profit of DKK10 million on the sale of its shares in Swedish portfolio company, Digital Illusions. The firm acquired its 8% shareholding in the game development company less than a year ago in spring 2001 for DKK14.2 million and sold its stake for DKK24.2 million. This corresponds to an IRR of 78%. Digital Illusions is listed on Nya Marknaden, the Swedish growth exchange.

Finnish group Menire, who invested with 2M Invest for an undisclosed sum, has also sold its shares. Menire will make a profit of around €502,241 corresponding to an annual gross IRR of 96.6%.

Michael Mathiesen, CEO 2M Invest, said: “2M Invest’s investment in Digital Illusions has been a successful investment and proves that, from time to time, thanks to industry knowledge and international network the company is able to make attractive investments in more mature companies.”

Founded in 1992, Digital Illusions develops games for PCs as well as game consoles such as Sony Playstation, Sony Playstation 2, Nintendo 64 and Microsoft X-BoX. The company has 150 employees.

At the end of last year 2M Invest entered into a strategic alliance with Growth.dk combining their skills in the Danish market to take advantage of both early and later stage opportunities in private equity.