Verdane Capital Advisors enters the Finnish private equity market

24 Mar, 2011

Verdane Capital Advisors is expanding its presence in the Finnish private equity market. Verdane Capital VII, a fund managed by the company, acquires Eqvitec Technology Fund III with a portfolio of 12 ICT and industrial companies. The transaction is the third acquisition completed by the firm in Finland in less than a year. Following the recent acquisitions, Verdane Funds now have 16 Finnish companies in their portfolio.

Verdane Capital VII, the fund managed by secondary investor Verdane Capital Advisors, acquires Eqvitec Technology Fund III (ETF III). The ETF III portfolio consists of 12 companies operating in the ICT and industrial sectors. The fund was previously managed by Eqvitec Partners, the Finnish private equity company.

The acquisition is the third transaction completed by Verdane Funds in Finland over the past ten months. Cumasa, a privately owned portfolio, was acquired in May 2010, followed by the acquisition of Eqvitec Technology Fund II in November 2010.  Verdane Funds now have 16 Finnish companies in their portfolio.

“Our ambition is to become a truly Nordic firm and the recent transactions enable us to gain a stronger foothold in the Finnish market. We are also establishing an office in Helsinki to support our local operations”, says Lars B. Thoresen, Group Managing Partner at Verdane Capital.

“We are the only firm in the Nordic region focusing on this kind of secondary transactions. By buying companies in bulk, we can provide the Finnish market with efficient liquidity solutions”, adds Bjarne Lie, Partner and CIO at Verdane Capital. “Owners of unlisted companies will now be able to get liquidity and rebalance their portfolios, without several years of lead time from strategic decision to completion”, he continues.

Verdane Capital negotiated the ETF III transaction with representatives of Eqvitec Partners and the fund investors, many of which are Finnish insurance companies and pension funds.  All investors had the option to either sell their interest in ETF III or to remain investors in the fund under Verdane’s management.

Varma Mutual Pension Insurance Company is one of the Finnish investors that took a lead role in the transaction. ”Verdane presented a satisfying solution to all investors. The new owners can provide additional capital and industry expertise to support future growth of the companies. We believe that Verdane will be successful in managing the portfolio and creating value”, says Risto Autio, Director at Varma Mutual Pension Insurance Company.