Finnish Industry Investment in 2010

Investments in funds, Investments in companies, Impact - 8.4.2011

In 2010, Finnish Industry Investment made new investments worth 100 million euros. At the end of the year the total outstanding investments amounted to €685m and the company was an investor in 446 companies either directly or through funds.

For the venture capital and private equity sector, 2010 was a year of recovery from the economic recession that was sparked off by the financial crisis. The improved business prospects of portfolio companies combined with a gradual return of banks’ willingness to take risks helped to boost investment activity. The company took on a stronger role as a catalyst for new projects and analyst of prospective investment candidates, as well as an agent for fostering co-investor commitment.

Finnish Industry Investment’s result for 2010, although still a loss, improved from the previous year. There were further write-downs for high-risk venture capital and growth investments, which form a substantial proportion of the company’s portfolio. A lower than expected exit volume also depressed the result.

As the sector was fairly well capitalised, there were not many new fund-raising projects in 2010. Later-stage funds, in particular, still had abundant investment capacity. During the review period Finnish Industry Investment increased its investments in foreign funds. With regards to direct investments, in the first half of the year most demand was for stabilisation investments. As the market became more active towards the end of the year, the focus shifted to growth and buyout investments. Investments in Valmet Automotive, Beneq and Glaston strengthened the companies’ expansion to international markets.

During 2011 Finnish Industry Investment aims to increase the supply of venture capital to internationalising growth companies. There is room in the market for new venture capital and growth funds. We are building networks through foreign fund investments and we are finding increasing numbers of foreign co-investors for our projects in Finland.

“The prospects for economic growth give grounds for expecting a rise in the valuation of investment portfolios. Since the exit market also shows signs of recovery, I believe we will return to profit in 2011,” says Juha Marjosola, President & CEO of Finnish Industry Investment.
 

For more information, please contact:

Juha Marjosola
, President & CEO, Finnish Industry Investment
Tel: +358 9 6803 6811, e-mail: juha.marjosola@teollisuussijoitus.fi