Tesi’s Interim Review 1.1.–30.6.2022 – Weaker economic prospects reflected in companies’ valuations
Tesi’s half-year result, while still positive, was significantly lower than that of the previous year. This was due to a flattening in the rise of investment valuations combined with losses in financial securities. There has been a reduction in new capital raised by Finnish venture capital and private equity funds since the record-breaking figures of 2021, although promising growth companies still find financing.
“The economic climate is also reflected in Tesi’s profit, most of which is imputed and unrealised. The energy crisis and sluggish economic growth, compounded by inflation and rising interest rates, create uncertainty about the future movement of investment valuations. If the situation deteriorates, Tesi’s full-year result may well be negative,” says Tesi’s CEO Jan Sasse.
Tesi’s role all the more important in times of market uncertainty
Tesi made new investments and commitments amounting to EUR 109 million, both in funds and directly in growth companies, during the first half of 2022. Investment volumes remained at the previous year’s levels except for the coronavirus-related special investment programmes, which closed to initial investments at the end of March. Tesi’s Finnish portfolio funds raised new capital while Tesi’s international fund investor partners invested appreciably less in Finland compared to the peak figures of the previous year. The decline is partly attributable to the normal seasonal fluctuation.
“Growth companies financed by the venture capital and private equity market play a crucial role in achieving transformative and sustainable economic growth. Tesi’s role is to supplement the market. We invest in international growth, we develop the venture capital and private equity market, and we help Finnish growth companies to succeed even in these challenging times,” Sasse continues.
Key figures for H1/2022 (H1/2021 in brackets)
- Tesi’s new investments and investment commitments EUR 109 (83) million, of which
- fund commitments EUR 45 (47) million
- direct investments in companies EUR 13 (12) million
- special investment programmes during pandemic EUR 51 (24) million
- Number of exits 8 (4)
- International capital attracted to Finland from Tesi’s fund investor partners EUR 27 (165) million
- New capital raised by Tesi’s Finnish portfolio funds EUR 203 (427) million
- Number of new VC&PE funds investing in Finland 4 (4)
- Tesi’s profit for the period EUR 12 (212) million
- Tesi’s investments under management as at 30.6.2022 EUR 2.4 (2.1) billion, invested in 112 (100) funds, 4 (4) funds-of-funds and 130 (87) direct portfolio companies, of which 52 (30) related to coronavirus mitigation programmes.
Read more in Tesi’s H1/2022 Interim Review
Further information:
Jan Sasse, CEO, Tesi, jan.sasse@tesi.fi +358 40 861 9151
Susanna Aaltonen, Director, Communications, Tesi, susanna.aaltonen@tesi.fi, +358 40 593 4221
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. Our investments under management total 2.4 billion euros. www.tesi.fi | @TesiFII