Finnish Industry Investment has raised a total capital of €130 million is the first closing of their new FoF Growth II fund. Major contributions totaling up to €70 million include Ilmarinen, Keva, Elo and the State Pension Fund.
The FoF Growth fund will invest in approximately 10 funds between the years 2014-2018. Evaluations from the the previous fund, the FoF Growth I, give these funds the potential to go as high as €1 billion in value.
During a period of 4 years (2009-2013) FoF Growth I in 11 Finnish venture capital and small buyout funds. The funds investments in more than 50 companies and 20 projects employing a total of 4500 people have so far generated a total turnover of €490 million in these companies. During the lifetime of the portfolio funds, FoF Growth will be involved in accelerating the international growth of more than 100 companies.
“The majority of new jobs in Finland are created in rapidly growing SME’s. On the other hand, the main obstacle for growth that these companies face is funding. The new fund ensures that there is capital available for growth companies”, says Jan Vapaavuori, Minister for Economic Affairs.
“As a repeated investment vehicle, FoF Growth II ensures the continuity of capital supply to the selected domestic risk capital funds. Its successful first closing is also a good demonstration of our long-term co-operation with the major Finnish investors“, says Jouni Hakala, Director at Finnish Industry Investment.
”For pension funds, FoF Growth provides an efficient way to participate in the growth of many companies through only one investment decision“, says Esko Torsti, Director at Ilmarinen and Chairman of the Investment Council of FoF Growth II.
Finnish Industry Investment invests in companies both directly and through private equity funds, together with and on the same terms as private investors. With 895 million euros in assets under management, the company is currently an investor, directly and through funds, in altogether 510 companies.
Piggy bank with flag coating over it isolated on white – Finland image by Shutterstock