Tesi

Tesi’s survey of investment returns: Finnish VC & PE funds top European league

Share
Tesi’s (Finnish Industry Investment) survey of investment returns reveals year-on-year improved performance by Finnish venture capital and private equity funds. The venture capital funds established since the financial crisis, in particular, excelled in comparison to their European peers, while also generating substantial returns compared to the listed market.
From Tesi's Fund Investments team: Matias Kaila, Director (on the left), and Samuel Wendelin, Investment Associate (on the right)
From Tesi's Fund Investments team: Matias Kaila, Director (on the left), and Samuel Wendelin, Investment Associate (on the right)

Newer venture capital funds (vintage years between 2009 and 2015) have produced an annual return of 25% for their investors. With returns rising to an attractive level, the funds have also returned capital to investors at a record pace.

”There has been a distinct and positive change in the Finnish venture capital fund market compared to the early 2000s. In the survey, so called ‘next-generation’ funds – vintage years after 2009 – topped the European league, which is testimony to a growth in expertise and to the development of Finland’s startup ecosystem,” says Matias Kaila, Tesi’s Director, Fund Investments.

“Finnish startups raised an all-time record amount of financing last year, a total of EUR 1.2 billion. The largest investor group was venture capital investors. Professional fund investors are increasingly interested in profiting from this growth by investing in venture capital funds. That trend, combined with a high level of returns, is very good news for Finland’s fund market,” comments Finnish Venture Capital Association’s CEO Pia Santavirta.

Most of the reported returns in the venture capital market are still unrealised. The final returns of funds are determined not only by portfolio companies’ success but also by the business climate and how active the exit market is – in other words, finding new owners for the next phase of growth.

“Finnish VC funds have returned capital to their investors at a slightly faster pace than the European average. An increasing number of Finnish VC backed companies have found good growth avenues, and investors are now turning their attention to how well VCs are able to exit from these companies and realize returns for their investors,” explains Tesi’s Investment Associate Samuel Wendelin, the person behind the survey.

Buyout funds also show good progress. Newer buyout funds, vintage years between 2009 and 2015, have generated annual returns of 17% for their investors and have continued to return capital at a steady pace.

The survey covered some 40 Finnish venture capital and private equity funds ranging in size from EUR 10 million to EUR 350 million. The sample funds were divided into venture capital funds and buyout funds. The funds were further subdivided, according to the their vintage years, into old vintages (inception 2002–2008) and newer vintages (inception 2009–2015), to obtain as realistic and balanced an overview as possible of such a small market. The returns on venture capital and private equity funds are based on their portfolio companies’ development, which can typically only be seen after about five years. For this reason, funds established during the last five years were not included in the survey.

Read more:

Keywords

Contacts

Tesi, Matias Kaila, Director, +358 40 40 720 1324, matias.kaila@tesi.fi
Tesi, Samuel Wendelin, Investment Associate, +358 50 512 5656, samuel.wendelin@tesi.fi
Finnish Venture Capital Association, Pia Santavirta, CEO, +358 40 5467 749, pia.santavirta@paaomasijoittajat.fi

Images

From Tesi's Fund Investments team: Matias Kaila, Director (on the left), and Samuel Wendelin, Investment Associate (on the right)
From Tesi's Fund Investments team: Matias Kaila, Director (on the left), and Samuel Wendelin, Investment Associate (on the right)
Download

About Tesi

Tesi
Tesi
Porkkalankatu 1
00180 Helsinki

Tesi (Finnish Industry Investment Ltd) is a state-owned investment company that wants to raise Finland to the front ranks of transformative economic growth by investing in funds and directly in companies. We invest profitably and responsibly, together with co-investors, to create the world’s new success stories. Our investments under management total EUR 2.4 billion.

 Twitter LinkedinImages and logo | Order Newsletter

Subscribe to releases from Tesi

Subscribe to all the latest releases from Tesi by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Tesi

Tesin vuosi 2023: Haastavassa markkinatilanteessa Tesin rooli vastasyklisenä toimijana korostui22.3.2024 10:41:16 EET | Tiedote

Edellisvuonna alkanut yritysten arvostustasojen lasku, pääomasijoitusrahastojen varainkeruun vaikeutuminen ja listautumismarkkinan hiljentyminen jatkuivat vuonna 2023. Epävarmassa markkinatilanteessa ja irtautumisten hidastuessa Tesin (Suomen Teollisuussijoitus) vastasyklinen rooli korostui. Tesi kokosi uuden 200 miljoonan euron Kasvurahastojen rahaston ja teki kappalemääräisesti yli 80 % suorista sijoituksistaan startup- ja kasvuyrityksiin jatkosijoituksina.

Tesi in 2023: Tesi’s role as a stabilising force in a turbulent market becomes increasingly important22.3.2024 10:41:16 EET | Press release

The decline in valuations that began the previous year, complications in the fundraising of venture capital and private equity (VC & PE) funds, and the slowdown in the IPO market all continued in 2023. The prevailing market uncertainty and sluggish exits increase the importance of Tesi’s role as a stabilising counterforce. Tesi raised a new EUR 200 million KRR V fund-of-funds, while over 80% of Tesi’s direct investments were follow-on investments in startup and growth companies.

Tesin yhtiökokous: hallituksen puheenjohtajana jatkaa Jacob af Forselles, uutena jäsenenä hallitukseen Olli Kärkkäinen22.3.2024 10:20:24 EET | Tiedote

Tesin (Suomen Teollisuussijoitus Oy) hallituksen puheenjohtajana jatkaa Jacob af Forselles, ja uudeksi jäseneksi on valittu valtiovarainministeriön strategia- ja tutkimusjohtaja Olli Kärkkäinen. Tesin hallituksen varapuheenjohtajana jatkaa Riku Huttunen sekä hallituksen jäseninä Mia Folkesson, Anniina Heinonen, Minna Helppi ja Timo Leino. Valinnat teki Tesin yhtiökokous 22.3.2024. Yhtiökokous vahvisti konsernin ja emoyhtiön tilinpäätökset ajalta 1.1.–31.12.2023 ja myönsi vastuuvapauden yhtiön hallitukselle ja toimitusjohtajille sekä hyväksyi hallituksen esityksen emoyhtiön tuloksen käyttämisestä. Vuonna 2023 toimitusjohtajana toimi Pia Santavirta. Varsinaiseksi tilintarkastajaksi valittiin KHT-yhteisö KPMG Oy Ab päävastuullisena tilintarkastajana KHT Marcus Tötterman. Hallituksen jäsenet Hallituksen kuvat

Tesi’s Annual General Meeting: Jacob af Forselles continues as Board Chair, Olli Kärkkäinen elected as new Board member22.3.2024 10:20:24 EET | Press release

Jacob af Forselles will continue as Chair of Tesi’s (Finnish Industry Investment Ltd) Board of Directors, and Olli Kärkkäinen, Strategy and Research Director at Finland’s Ministry of Finance, was elected as a new Board member. Riku Huttunen will continue as Vice Chair of Tesi’s Board of Directors, while Mia Folkesson, Anniina Heinonen, Minna Helppi and Timo Leino continue as existing members. The appointments were made by Tesi’s Annual General Meeting on 22 March 2024. The Annual General Meeting also approved the Group’s and parent company’s financial statements for fiscal year 1 Jan–31 Dec 2023, discharged the Board of Directors and the company’s CEO of liability, and approved the Board’s proposal for using the parent company’s profit. The CEO in 2023 was Pia Santavirta. KPMG Oy Ab, Chartered Accountants, was elected as the company’s auditor, with Marcus Tötterman, Chartered Accountant, as lead auditor. Board members Photos of Board

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
HiddenA line styled icon from Orion Icon Library.Eye