DAL Partners – Growth capital and operational support for SMEs

Why?

Finland has a broad base of SMEs, many of which have real potential to grow into a larger size class. Many of these companies, however, are too large or too established for venture investors, yet too small for the large buyout funds. New private equity firm DAL Partners provides growth capital for exactly this gap in the small-cap segment.

The firm targets a portfolio of just a handful (3 to 4) of entrepreneur-led SMEs in the services and technology sectors. Its target companies have an established business model and significant growth potential. A limited portfolio allows DAL’s team to dedicate substantial time to each company and to work alongside management in day-to-day operations as well.

What and how?

DAL Partners can support its portfolio companies with up to EUR 10 million over the course of its ownership, a significant amount at this size class. DAL aims for majority ownership, either alone or together with other investors. Beyond capital, DAL’s experienced team brings hands-on operational expertise to the entrepreneur’s side in whatever the company needs to grow. Typically, this can mean taking on the role of CFO or COO, or responsibility for M&A. DAL’s active model is flexible and always tailored to the target company’s needs.

As part of its approach, the manager also supports companies’ growth with AI-based technological expertise. AI makes it possible to build business-supporting software and technology solutions for SMEs faster and more affordably than before, solutions that used to be within reach only for larger companies. The technology resources of DAL Partners and its network help portfolio companies carry out the digital transformation that growth requires.

Growth and internationalisation

DAL Partners’ goal is to set its portfolio companies on a path of strong growth. The first objective is to build a strong position in the Finnish domestic market within the company’s own sector. From there, the conditions for internationalisation are assessed, and strengthened jointly where needed.

A significant share of the investors in DAL Partners’ first fund are entrepreneurs and business leaders. Their experience, industry expertise and networks strengthen DAL’s work and help portfolio companies grow and internationalise in turn. The investor base also includes international investors, notably Swedish family offices, through which the Nordic markets open up more easily.

DAL Partners wants to build an active operating model that supports growth in the Finnish SME sector. The aim is to raise a second and third fund after the first, bringing ever more growth capital to the SMEs that fall into a gap in investors’ eyes along their growth path.

Tesi's role

Tesi is the anchor investor in DAL Partners’ first fund, a role it typically takes in domestic fund projects, particularly with new teams. By investing in new GPs, Tesi supports the renewal of the market and the emergence of new financing models.

General information

The founders of DAL Partners have extensive experience in growing and internationalising technology and services companies. DAL Partners’ founders Casimir Kontio, Niklas Lahti and Markus Remes, together with DAL Partners’ Chairman of the Board Yrjö Närhinen, bring complementary experience in private equity investing, operational management, M&A and growth financing. The team has worked with leading Nordic and international companies, such as EQT and SEB, as investors, executives and advisors. Närhinen is the former CEO of Terveystalo and Hartwall.