Investment process

Screening

Screening

In meetings with a company we verify whether we are the right investor for the company’s needs and whether the company fits into our investment focus.

We discuss:

  • The company’s growth plan, competitive advantages and market opportunities
  • The amount of financing needed and how it will be used
  • Suitable co-investors

The expertise and versatility of a company’s management team are of crucial importance to us.

Discussions and evaluation

Discussions and evaluation

As a minority investor our holding can be a maximum 50%. Our co-investors are Finnish and foreign private equity and venture capital companies, pension funds, industrial investors and also private investors. We can help a company find a suitable investor syndicate.

Together with co-investors, we:

  • get to know the management team and Board of Directors,
  • evaluate the company’s market value,
  • evaluate the company’s strategy, technology and financial situation, and
  • discuss the amount of investment and any need for follow-on financing.

We want to ensure the company’s management team can successfully steer the company to the jointly agreed objective.

Due Diligence and preparation of investment

Due Diligence and preparation of investment

We form a common understanding of the company’s value and we define the investors’ holdings in the company.

We agree on due diligence procedures and other contractual conditions, as well as on financing and exit plans. FII’s Board of Directors makes a decision on investing in the company.  We sign the agreements relating to the investment. We jointly agree how information about the investment will be disclosed.

Value creation

Value creation

We help with the company’s management on growth-related issues:

  • Implementing the growth plan and sharpening the strategic focus
  • Recruitment of key personnel
  • Planning of any follow-on investment

An industry expert who has a thorough knowledge of the specific company’s industry acts as our representative on the company’s Board of Directors. The company’s CEO and management are in charge of all operative functions.

For international investors we are a player that knows the local market. An international investor brings added value to a company when that company expands into those markets. This means opening local doors, assistance in local recruitments, and the introduction of a broader perspective in strategic decisions. 

 

Exiting

Exiting

As a private equity or venture capital investor, we are a temporary owner. We exit investments together with other owners within the targeted schedule. We make investments on market terms and we seek a return from all investments.

Typically the exit options are:

  • Listing on a stock exchange (IPO)
  • Acquisition by e.g. an industrial buyer
  • Refinancing, i.e. the sale of a holding to, for instance, an institutional investor