The Third Swedish National Pension Fund (AP3) has defended its decision to invest in online gaming company Hacksaw, after it acquired a SEK 485m stake when the company was listed on Nasdaq Stockholm at the end of June.

Hacksaw is a global, technology-first remote gaming server (RGS) platform and game supplier for iGaming operators. For the year ended 31 December 2024, it generated total revenues of approximately €137m, compared to approximately €67m the previous year — an increase of 105 per cent.

Despite Hacksaw’s strong revenue growth, some critics argue the investment contradicts AP3’s responsible investment policy, especially after the company was fined SEK 2.6m in May 2024 by the Swedish Gambling Authority.

Currently, AP3 is the 11th-largest shareholder in Hacksaw, holding 6,300,000 shares—equivalent to 2.18 per cent of total capital.

The company launched with a value of SEK 77 per share, meaning AP3’s total investment amounts to around SEK 485m.

In response to the criticism, AP3 head of equities Jonas Victorsson acknowledged to Sweden’s EFN that Hacksaw “operates in a sector with high sustainability risks.”

“Although the company is not directly exposed to these, it is important that the company does what it can to minimise negative impact. The company has signalled that it is aware of these and has begun to address them,” he said.

In his view, many of the sustainability risks surrounding the investment are due to underdeveloped markets, rather than Hacksaw itself.

“Hacksaw's business strategy is based on the assumption that more and more markets will be regulated and that less reputable operators will be eliminated. Regulation means adjustment costs for customers with old technology, which is where Hacksaw has a clear competitive advantage,” he said.

When contacted, an AP3 spokesperson added: "The investment is in line with AP3's mandate, and we will continue to monitor the company on an ongoing basis."

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