Tesi in 2021: Investors’ and companies’ growth expectations remained high, and valuation levels rose despite the pandemic

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Market development was positive in 2021, and international investors did not withdraw from Finland, as happened in previous crises. Tesi’s investment valuations and profit both rose significantly. Active, skilled ownership will be of even greater importance going forward because the value of most funds and companies is as yet unrealised and will need to be nurtured over the long term.

“Despite the pandemic, general economic growth was brisk in 2021, and overall investment valuations have risen. The high level of valuations is also reflected in Tesi’s higher profit, most of which is imputed and unrealised,” says Tesi’s CEO Jan Sasse.

Tesi made new investments and commitments amounting to EUR 207 million in 2021, both in funds and directly in growth companies, the figure also including the acquisition of Finnvera’s remaining VC operations. Tesi’s Finnish funds raised one billion euros of new capital (686) while Tesi’s international fund investor partners invested EUR 192 million (171) in Finland during the year. Tesi’s European collaboration will continue as Tesi and European Investment Bank agreed to a new EUR 100 million co-investment facility for Finnish SMEs at the end of the year.

“As a venture capital and private equity investor, we work towards solving global and domestic sustainability challenges. We contribute to sustainable development by financing companies undergoing transformation, by creating added value as an owner, and by cooperating extensively,” says Jan Sasse.

Tesi’s net profit for the fiscal year was EUR 338 million (179). The Company’s retained earnings, including the net profit for the 2021 fiscal year, amounted to EUR 936 million at year’s end. The cumulative total of EUR 819 million of investments in Tesi by the Finnish government has grown into EUR 1,755 million of shareholders’ equity. The imputed return on investment (internal rate of interest) for the state, taken over the whole period of operation, has been positive (approx. 7.4% after taxes).

Special investment programmes of a temporary nature were Tesi’s way of responding flexibly to the bottlenecks the coronavirus pandemic caused in the venture capital and private equity market. As the crisis is receding, it is only natural to end the temporary activities aimed at mitigating the effects of the pandemic. Applications for initial investments under the investment programmes can be submitted up until 31 December 2022. Follow-on investments are possible also after March.

Russia’s attack on Ukraine at the end of February will have a profound impact on people, geopolitics, the environment and national economies. Tesi will support Finnish growth companies and Finland’s venture capital and private equity (VC & PE) market in the prevailing situation.

2021 Key Figures (2020 figures in brackets)
  • Tesi’s new investments and investment commitments EUR 207 million, (248), of which
    • fund commitments EUR 136 million (82)
    • direct investments in companies EUR 45 million (38)
    • special investment programmes to mitigate pandemic impact EUR 26 million (63)
  • International capital attracted to Finland from Tesi’s fund investor partners EUR 192 million (171)
  • New capital raised by Tesi’s Finnish portfolio funds EUR 1.0 billion (686)
  • New VC & PE funds investing in Finland 14 (9)
  • Tesi’s net profit for the year EUR 338 million (179)
  • Tesi’s investments under management as at 31 December 2021 amounted to 2.4 (1.9) billion euros, comprising 109 (97) funds, 4 (4) funds-of-funds, and 119 (76) direct portfolio companies
Read more in the 2021 Annual Report
Further information

CEO Jan Sasse, Tesi, jan.sasse@tesi.fi, +358 40 861 9151

Link to Jan Sasse’s photo


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, together with co-investors, to create the world’s new success stories. Our investments under management total 2.4 billion euros. www.tesi.fi | @TesiFII