Tesi’s survey of investment returns 2021: Considerable returns on the Finnish PE/VC market

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The survey of returns conducted by Tesi shows that the Finnish venture capital and private equity market is performing well at present. Returns from Growth and Buyout funds have stabilised at a good level, and investment value is being realised at a steady rate. The venture capital market is also flourishing and returns from Finnish venture capital funds have risen to an excellent level in recent years.

According to Tesi’s most recent survey of returns, the Finnish venture capital and buyout market is currently thriving. The survey analysed returns from investments in the Finnish venture capital and private equity market as at December 2020. The survey sample consisted of some 40 funds. The sample funds are divided into Venture Capital funds and Growth & Buyout funds. The funds are also grouped chronologically into new (vintages 2009-2015) and old (vintages 2002-2008) funds.

This survey is a continuation of the survey of returns published for the first time in 2018. Tesi intends to publish such updates annually in the future. The aim of the survey is to provide fund managers, investors and other industry stakeholders with up-to-date information on the industry’s performance.

Venture capital market growing and flourishing

The survey results show that the Finnish venture capital market is currently doing well. New funds, founded after 2009, have produced a record 20% return on investment. The corresponding percentage in Tesi’s 2018 survey was 8%, so there has been considerable improvement. Finnish venture capital funds’ returns have risen to an excellent level, even compared to their European peers. It is typical in the venture capital sector that one or two successful investments have a significant impact on the returns of individual funds and on the industry as a whole. In recent years, however, there have been successes in the funds of many different players. The current level of market returns is therefore not a consequence of the success of one individual player.

Most of the reported returns in the venture capital market are still unrealised. The final performance of the funds is subject to changes in both the portfolio companies and in the wider market.

“The next development goal for the venture capital market is to generate more exits. The portfolio companies of the newer fund group will reach maturity soon, so significant capital distributions for investors are expected in the coming years,” comments Samuel Wendelin, Investment Analyst in Tesi’s Fund Investments team.

Steady returns from the buyout market

Finland’s buyout market has performed well and improved steadily in recent years. The survey results show that market returns have stabilised at a good level, and investment value is being realised at a steady rate. For old funds, the return on investment has been 8% and for new funds 15%. The corresponding percentages in Tesi’s 2018 survey were 7% and 14%, respectively, so there has been some growth, although moderate.

Returns from the funds’ portfolio companies can vary greatly but this variation evens out at the fund level. The impacts of the COVID-19 pandemic on individual portfolio companies are noticeable, but the pandemic has had no significant impact on returns at the market level.

Survey of returns 2021 

Further information:

Samuel Wendelin, Investment Analyst

+358 50 512 5656


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. We invest profitably and responsibly, hand-in-hand with co-investors, to create the world’s new success stories. Our investments under management total 1.9 billion euros. www.tesi.fi @TesiFII