Evli launching new green transition fund – to invest in growth companies in energy, resource efficiency and the circular economy
Evli launching new green transition fund – to invest in growth companies in energy, resource efficiency and the circular economy
Evli Private Capital Fund I is Finland's first thematic growth equity fund focused on minority investments. The fund will have a target size of EUR 70 million and will invest in 5-8 target companies in Finland and Sweden. A typical investment size is EUR 8-15 million.
The green transition will be one of the most important growth drivers both now and in the coming decades, with global investment needs driven by climate change estimated to be around $100-150 trillion by 2050. The new Evli Private Capital Fund I aims to capitalize on this green transition megatrend by investing in Finnish and Swedish unlisted companies with significant growth potential.
The Evli Private Capital team consists of experienced investment professionals and is part of Evli's 38-person alternative investments organization. The team's founding partners, Kalle Kekkonen and Kia Aejmelaeus, have made several private equity investments over the past three years in interesting growth companies promoting sustainable development. Examples of previous investments include Elcoline and Solnet Green Energy, both of which have now set their sights on growing internationally.
In the Finnish fund landscape, Evli's new growth fund is positioned between early-stage Venture Capital funds and later-stage Buyout funds. The fund will make significant minority investments in profitable growth phase companies. Evli is an active owner that in addition to capital, provides the companies also with support in areas such as strategy clarification, implementing M&A and internationalization, as well as access to a broad network of experts.
"The new fund is a continuation of the successful investment strategy we’ve implemented earlier. As a result of our active work, we have a significant number of interesting deal flow, strong networks and a good reputation in the market," says Kekkonen.
"The fund has been established at an interesting time. Some of the best performing funds investing in unlisted companies have been launched in uncertain times during a downturn, when it is possible to get into interesting companies at reasonable valuation levels. Finland has fostered a strong, forward-looking environment for innovation and a highly skilled workforce to accelerate the green transition. Through our investments, we want to be part of building successful growth companies here.”
The Fund's investment strategy is based on sustainable development, with themes focusing on the energy sector transformation, resource efficiency and the circular economy. From the fund's point of view, the investment environment in both Finland and the Nordic countries is favorable in a historical context, with up to €260 billion forecast to be invested in the green transition in Finland alone over the next few years.
Like all Evli funds, Evli Private Capital Fund I will follow the principles of responsible investment. In addition to integrating sustainability analysis and monitoring into the investment process, the fund will promote environmental and social characteristics in accordance with Article 8 of the SFDR.
EVLI PLC
Additional information:
Kalle Kekkonen, Managing Partner, Evli Private Capital, Evli Fund Management Company Ltd, tel. +358 50 304 5861, kalle.kekkonen@evli.com
Evli Plc
We see wealth as an engine to drive sustainable progress. We draw on our heritage, broad expertise, and Nordic values to grow and manage wealth for institutions, corporations and private persons in a responsible way.
We are the best fund house in the Nordics1 and the leading asset manager in Finland2 offering a broad range of services including mutual funds, asset management and capital markets services, alternative investment products, equity research as well as Corporate Finance services. Responsible investing is integrated in every investment decision and our expertise is widely acknowledged by our clients. Evli has Finland's best expertise in responsible investment3.
Evli Group employs around 300 professionals and Evli has approximately EUR 18.7 billion in client assets under management (net 6/2024). Evli Plc’s B shares are listed on Nasdaq Helsinki Ltd. More information at www.evli.com.
1 Morningstar Awards 2024 (c). Morningstar, Inc. All Rights Reserved. Awarded to Evli for the Best Fund House in Finland and Sweden. Lipper Fund Awards 2023, the category Small Fund Companies.
2 Kantar Prospera External Asset Management Finland 2015, 2016, 2017, 2018, 2019, 2021, 2022, 2023. Kantar Prospera Private Banking 2019, 2020 Finland.
3 SFR Scandinavian Financial Research Institutional Investment Services Finland 2021, 2022. Kantar Prospera External Asset Management 2017, 2018, 2019, 2020, 2023 Finland.
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