Tesi in 2017: Strong growth in portfolio companies and numerous exits led to an excellent result


Tesi made new investments totaling €149m, incl. a €60m commitment in the fund-of-fund KRR III. Direct portfolio companies continued to grow strongly, as their sales increased on average 22% during the year. Favourable operating environment, strong growth in portfolio companies as well as numerous exits led to a financial result of €66m for the year.

CEO Jan Sasse comments:

”In 2017 the Finnish venture capital and private equity market developed well. New funds were raised in all development phases. The Finnish venture capital investor Inventure broke records as it raised a total of €110m in its third fund. KRR III, a fund-of-fund established by Tesi and Finnish pension and insurance companies raised €150m to be invested in Finnish venture capital and growth funds in the coming years. 

In addition to KRR III, Tesi gave commitments to seven funds totaling €60m, and made direct investments in 22 companies totaling €29m. Tesi’s international partners invested €72m in Finnish companies. The continued high activity of Asian investors in the Finnish venture capital and private equity market was one of the prevailing trends. Furthermore, both Finnish and international industrial buyers were active in the market.

The persistent co-operation between investors and company management in developing portfolio companies was reflected in strong growth and numerous exits, both in funds as well as in direct investments. Tesi’s financial result was €66m. Tesi will reinvest the profits into new funds and companies to support the growth and internationalisation of Finnish companies.”

Operating environment

Venture capital and private equity markets have remained stable both in Finland and internationally, largely due to a continuing appetite for risk and abundant liquidity in almost all asset classes. Finnish venture capital and private equity funds were successful in fund-raising in 2017. New funds were raised to support the growth and risk-taking capacity of companies in all phases of development. 

In 2017, Finnish venture capital investment volumes remained close to the record levels of 2016, at some €250m. International investors are more active in Finland’s venture capital and private equity market than ever before. Chi­nese investors, in particular, made many significant investments and acquisitions in Finland during the year.

Finnish buyout funds have around €1b of raised capital seeking new investees. A large part of these funds’ investment capacity will be target­ed at an important part of Finland’s business structure – the growth and internationalisation of medium-sized compa­nies and their mergers and acquisitions.


In 2017, Tesi made new investments amounting to €149m (€165m), incl. €60m commitment in KRR III. Tesi gave commitments to seven funds totaling €60m (€102m). Four commitments were made in venture capital funds and three commitments in small buyout funds. Tesi made direct investments in 22 companies totaling €29m (€63m), incl. the investments of Start Fund I Ky that Tesi acquired. Tesi’s international partners invested €72m in Finnish companies.

In 2017, KRR II became fully invested and its portfolio now consists of 10 Finnish venture capital and growth funds. KRR III made its first commitment in a Finnish venture capital fund.

Financial performance

The favourable operating environment was reflected in Tesi’s portfolio as strong growth in portfolio companies and many exits, which led to a strong financial result both in investments as well as in financial securities. Net gains from venture capital and private equity investments were €69m (€46m): funds €53m (€28m) and direct investments €15m (€18m). Net gains from funds were boosted by positive increase in valuations and by exits. The net gains from direct investments comprised exits from investments. The net gains from financial securities were €18m (€17m). Operating profit was €80m (€55m), and profit after taxes for the financial year was €66m (€45m).

The balance sheet total in 2017 was €1,020m (€943m) and the company’s equity €978m (€912m). The balance sheet value of funds was €372m (€336m) and direct investments €189m (€189m).

Investments under management totaled €1.2b at the end of the year. In addition to Tesi’s own investments and commitments, this consists of the assets that Tesi manages via KRR I, II and III.

The Finnish government has capitalised Tesi from the start of its operations with altogether €655m. The company’s cumulative profit, including the figure for 2017, amounted to €323m.

Events after the financial year

In 2018, Tesi has given a commitment to a Finnish growth fund Saari I Ky and made direct investments in Viria and Zervant.


Tesi’s strategic themes for 2018 are developing the Finnish venture capital and private equity market, active ownership, corporate responsibility and sustainable development and renewal.

Tesi’s focus on fund investments is increasingly on venture capital funds and small buyout funds. In 2018, Tesi will put emphasis on expanding the investor base of Finnish funds. A number of new teams are in the process of fund-raising in Finland. Tesi will continue to make direct minority investments in growth-seeking SMEs and industrial investments. The focus in direct investments is on the Industrial Renewal and International Investors investment programmes. New focus areas for direct investment are the circular economy and artificial intelligence.

Tesi will continue its close collaboration with EIF and EIB in channeling EU funding into Finnish funds and growth companies.

Excellent returns from previous financial years give Tesi strong resources for long-term investment operations that promote the growth of Finnish companies. 

Annual General Meeting

The Annual General Meeting of Finnish Industry Investment Ltd (Tesi) was held on March 6, 2018. Esa Lager will continue as the Chairman of the Board, and Kimmo Jyllilä, Mika Niemelä, Annamarja Paloheimo and Riitta Tiuraniemi will continue as board members. Marika af Enehjelm and Pauli Kariniemi were appointed as new board members.

Tesi's Annual Review 2017

Performance and results 2017 presentation material


For further information, please contact: CEO Jan Sasse, Tesi, +358 40 861 9151,  jan.sasse@tesi.fi


Tesi (Finnish Industry Investment Ltd) is a venture capital and private equity company that accelerates companies’ success stories by investing in them directly and via funds. Tesi always invests together with other investors, providing them with access to high quality deal-flow in Finland. Our investments under management total €1.2 billion and we have altogether 700 companies in portfolio. www.tesi.fi / @TesiFII