Investments in 2014
Finnish Industry Investment maintained a high level of investment activity during 2014, screening some 260 new private equity and venture capital investment projects and making new investments totalling €83m.
Finnish Industry Investment updated its strategy at the end of 2014. Direct investment operations will in future be more clearly focused on companies needing later-stage venture capital financing and on medium-sized enterprises seeking international growth. Fund investment operations will focus on continuing to finance Finnish private equity and venture capital investments funds and on working towards internationalising Finland's private equity and venture capital industry.
- Finnish Industry Investment made new investment commitments, totalling €42.3m, in seven venture capital and private equity funds. Investment commitments were given to five venture capital funds and to two late-stage growth funds. The company exited from five funds at the end of their terms.
- New direct investments amounted to €39.9m in 2014. Most direct investment was in growth companies focusing on international growth and exports and also in medium-sized industrial companies. Finnish Industry Investment also co-invested in the listing of two companies.
Investments and commitments €784.4m*
* Parent company’s investments
The loss for the financial year was €43.2m. Income from private equity and venture capital investments was booked as €21.6m. However, the value reductions of investments as well as the exit and sales losses from exits that were entered in the accounts pushed the result for the financial year into loss. The largest loss resulted from Finnprotein Oy's bankryptcy.
- Capital calls totalling €61.6m were paid out in fund investments during the year. Correspondingly, the cash flow returning from funds amounted to €58.3m. The share of profits received from funds and entered in the income statement was €17.0m.
- The amount of direct investments paid during the year totalled €39.9m. Returning cash flow from direct investments amounted to €9.9m. In addition, some risks in high-risk projects were realised and considerable write-downs made.
- The year was satisfactory for liquid assets. The market value of income from liquid assets was about €14m, and the book result €10.7m. Favourable development of stock markets contributed to the positive earnings.
Financial result 1995-2014 (€ millions)
Despite the financial losses in recent years, Finnish Industry Investment's operations have been profitable over the long term. The government has invested a cumulative total of €550m in Finnish Industry Investment. At the end of 2014 the value of the Finnish government's investment was some €597m.