Government-owned Finnish Industry Investment has launched a new fund of funds, FoF Growth II, with commitments from four Finnish pension funds, holding a first closing on €130m.
Similarly to its predecessor, FoF Growth I, the fund will focus on Finnish venture capital and small buyout funds. The fund’s total capital at first closing is €130m, with commitments from Finnish pension funds Ilmarinen, Keva, Elo and the State Pension Fund amounting to €70m.
FoF Growth will invest in approximately ten funds during its investment period 2014 to 2018.
“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”, said 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“, added Jouni Hakala, Director at Finnish Industry Investment.
During 2009–2013, FoF Growth I invested in 11 Finnish venture capital and small buyout funds. To date, these funds have invested in more than 50 companies and 20 projects employing a total of 4500 people and having a total turnover of 490 million euros. During the lifetime of the portfolio funds, FoF Growth will be involved in accelerating the international growth of more than 100 companies.
”For pension funds, FoF Growth provides an efficient way to participate in the growth of many companies through only one investment decision“, said 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. It currently has €895m in assets under management,
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