Private equity investor Folmer Management Ltd has formed a new private equity fund that invests in Finnish SMEs. The size of the Folmer Equity Fund I Ky on first closing is some MEUR 29, and the funds target size is approx. MEUR 35. The largest investors in the fund are the Kasvurahastojen Rahasto Ky fund co-founded by Finnish Industry Investment Ltd and Finnish employment pension companies, and Suomi Mutual Life Assurance Company, VR Pension Fund, the Union of Salaried Employees TU, the Trade Union of Education in Finland, and the Danish institution Bankpension.
Folmer Management Ltd emphasises the value of controlled management of human resources in portfolio companies. Alongside tailoring conventional financing structures, Folmer focuses on evaluating portfolio companies human capital i.e. their organisations and management and on actively developing it in partnership with the companies management.
Private enterprise seeks new business models in all stages of the economic cycle. SMEs are of vital importance to the operations of Finnish trade and industry. We believe that Folmer will add a new dimension to Finnish private equity investment, says Esko Torsti, chairman of Kasvurahastojen Rahasto Kys investment council and also a director of Ilmarinen Mutual Pension Insurance Company.
The fund is now ready to make investments in portfolio companies with turnover of some MEUR 2-50 and an enterprise value of MEUR 5-15, says Folmer Management Ltds managing director and partner Sami Tuominen.
Folmer Management Ltd invests in Finnish SMEs in different industries. Folmer supports the growth, development and increase in enterprise value of portfolio companies through active partnership with the companies management. www.folmer.fi
Kasvurahastojen Rahasto Ky funds investors are Finnish Industry Investment Ltd and Finnish employment pension companies Ilmarinen Mutual Pension Insurance Company, Local Government Pensions Institution, State Pension Fund, Eläke-Fennia Mutual Insurance Company, Tapiola Mutual Pension Insurance Company, OP Life Assurance Company Ltd, OP-Eläkekassa and Etera Mutual Pension Insurance Company. Pension companies commitments account for 60% and Industry Investments commitments for 40% of the funds MEUR 135 capital. The fund invests in funds investing in promising unlisted growth companies, with the aim of making annual investments totalling MEUR 30-50 in 2-4 funds, depending on the market situation. www.industryinvestment.com