Investment process

We make minority investments in Finnish companies together with and on the same terms as other investors. We share financial risk, accelerate the growth and international expansion of our portfolio companies and believe in active ownership.

1.

Screening

In the first meetings with a company we establish whether we are the right investor for you and whether your company fits into our investment focus.

We would like to learn more about your growth plans and other investors, and ESG related matters.

 

We want to ensure the company’s management can successfully steer the company to the jointly agreed objective.
2.

Discussions and evaluation

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

Together with co-investors, we:

  • get to know your management team and Board of Directors
  • evaluate the company’s market value
  • evaluate the company’s strategy, technology and financial situation, and
  • discuss the investment round in question and possible follow-on financing needs
  • evaluate aspects related to sustainability
For international investors we are a partner that knows the local markets inside out.
3.

Due Diligence

We form a common understanding of the company’s value and 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.

Tesi’s Board of Directors convenes monthly to make investment decisions. We sign the agreements relating to the investment. We jointly agree how information about the investment will be disclosed. Our communications expertise is also at your disposal.

We open doors and give insight into strategic decisions.
4.

Active ownership

We are your sparring partner in growth related issues:

  • Implementing the growth plan and sharpening the strategic focus
  • Recruitment of key personnel
  • Planning of any follow-on investment
  • Ownership arrangement considerations
  • ESG related aspects

An industry expert appointed by Tesi acts as our representative on the company’s Board of Directors. The company’s CEO and management are in charge of all operative functions.

5.

Exit

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

Typical exit options are:

  • Trade sale to e.g. an industrial buyer
  • Listing on a stock exchange (IPO)
  • Refinancing