The success of Finnish SMEs is partly due to the know-how of buyout and growth investors, who are primarily focused on supporting domestic companies looking for growth partners. More than 90% of the investments made in 2022 were aimed at domestic companies, and the investments were spread throughout the country. The companies of Central Finland and Pirkanmaa received the most investments after Uusimaa.
Investments made by private equity investors have also produced significant returns for Finnish companies. According to a 2022 study conducted by Pรครคomastiojitat ry and PwC, the growth of private equity companies is nine times faster in terms of turnover and five times faster in terms of number of employees than comparison companies.
The success of Finnish SMEs has also attracted a record 3 billion euros in new funds between 2018 and 2022, and in 2022 several growth funds with minority investments were launched. The funds currently have a significant amount of unallocated capital, which indicates that more investments in companies looking for growth partners can be expected in the future.
However, the Finnish Private Equity Association has also emphasized the need to remove obstacles to private equity funds’ domestic and foreign fundraising and to create more competitive opportunities to attract growth capital to Finland. Despite the challenges, the success of Finnish SMEs has remained stable, and in 2022 there were 38 exits through deals or sales to another capital investor.
In summary, it can be stated that Finnish buyout and growth investors have continued to support the growth of SMEs in Finland and promoted their success even in the midst of economic uncertainty. Thanks to steady investment activity and the record funds collected in recent years, the future looks promising for Finnish SMEs looking for growth partners.
HT
Source: The Nordic Page