SovereignWealthFunds.comTesi (Finnish Industry Investment Ltd)
Finnish Industry Investment Ltd: what it invests in
Geography Domestic and global
Finnish Industry Investment Ltd: how big it is, and on what basis
In US dollars: about USD 3.76B. At 0.85106 euros per US dollar, ECB reference rate for 31 December 2025.
Finnish Industry Investment Ltd: what it publishes
Published 9 · Partly 1 · Not published 0
Our 10 item score. It measures what is public, not how well a fund is run.
At a glance. Tesi is Finland's state-owned venture capital and private equity investor. It backs funds and invests directly in startups, scale-ups and new industrial projects, always on market terms and alongside private money. It managed EUR 3.2 billion (about USD 3.8 billion) of VC and PE investments at end 2025, a minority stake in 576 Finnish companies, and made a record EUR 425 million of new commitments in 2025. S3 S5
Key points
- VC and PE investments under management of EUR 3.2 billion at end 2025, up from EUR 2.6 billion. S3
- EUR 425 million committed in 2025: EUR 124 million to 7 funds and EUR 301 million directly in 34 companies. S3
- IFRS net profit EUR 178 million in 2025; retained earnings of EUR 1,083 million since inception. S3
- The State merged its venture capital units into Tesi on 31 May 2025, adding 36 direct investments and 14 funds. S3
- Reaches 1,463 portfolio companies directly and through funds, 887 of them outside Finland. S4
- Equity ratio of 93.5 percent and return on equity of 7.9 percent. S4
Interesting facts
- Tesi has owned Oura since its early stages; Oura raised over EUR 770 million in 2025, a Finnish record for an unlisted company. S3
- It anchored Lifeline Ventures' EUR 400 million fund, the largest VC fund in Finnish history. S3
- It holds a majority of Railotech, formerly Aker Arctic, through an industrial subsidiary. S4
Mandate and goals
Develop the Finnish VC and PE market by investing in funds and companies on market terms, seeking a profit on every investment and recycling returns into new funds and companies. S4
How it invests
| Industries | Technology, Renewables and climate, Industrials and manufacturing, Healthcare and life sciences, Mining and metals S3 S1 |
|---|---|
| Asset classes | Venture capital, Private equity S3 |
| Stages | Seed, Venture, Growth, Buyout S3 |
| Geography | Domestic and global. Direct investments are in Finnish companies; international exposure comes mainly through funds S4 |
| Direct / through funds / co-invest | Yes / Yes / Yes S3 |
| Ticket size | No ticket range is published; direct deals averaged about EUR 9M in 2025. S3 |
| External managers | Commits to private VC and PE funds; 1,328 companies held through portfolio funds S4 |
| Co-investment programme | Co-investor programme and KRR funds-of-funds for institutional investors S4 |
Asset mix: Fund commitments 2025 29%, Direct investments 2025 71% (as of 2025-12-31) S3
Published criteria
- Market terms and a profit target on every investment. S4
- Minority holdings, normally below 50 percent. S4
- Invests with private co-investors. S3
- Priority to scale-ups and industrial projects. S3
Fund commitments
Past investments
| Year | Investment | Type | Sector | Stage | Amount |
|---|---|---|---|---|---|
| 2025 | Lifeline Ventures fund. Largest VC fund in Finnish history. S3 | Fund commitment | Technology | Venture | Anchor in a EUR 400M fund |
| 2025 | Cloudberry.vc. First private European fund focused on semiconductors. S3 | Fund commitment | Technology | Venture | Not published |
| 2025 | Ren-Gas. Initial investment under the industrial projects focus. S3 | Direct investment | Renewables and climate | Growth | Not published |
| 2025 | Norsk e-Fuel. Initial investment in 2025. S3 | Direct investment | Renewables and climate | Growth | Not published |
| 2025 | NestAI. Initial investment in 2025. S3 | Direct investment | Technology | Venture | Not published |
| 2025 | IQM. Follow-on investment. S3 | Direct investment | Technology | Growth | Not published |
| 2025 | ICEYE. Follow-on investment. S3 | Direct investment | Technology | Growth | Not published |
| Not published | Oura. Shareholder since early stages; Oura raised over EUR 770M in 2025. S3 | Direct investment | Technology | Venture | Not published |
| 2025 | Valmet Automotive arrangement. Capital repayment linked to the corporate arrangement. S3 | State asset transfer | Industrials and manufacturing | Not stated | EUR 167M returned to the State |
| 2013 | Aker Arctic (now Railotech). Became majority owner, held via Tesi Industrial Management. S1 | Direct investment | Industrials and manufacturing | Buyout | Not published |
| 2010 | Industri Kapital fund. First commitment to an international fund. S1 | Fund commitment | Multi-sector | Buyout | Not published |
| 1997 | Technology Fund (Teknologiarahasto). Co-founded with Sitra. S1 | Joint venture or partnership | Technology | Venture | Not published |
Case studies
One state VC house S3
- What: The State moved the assets of three state-owned companies into Tesi, including 36 direct investments and 14 funds.
- When: 31 May 2025
- Size: Not published
- Why: To make the State's venture capital work more efficient, as set in the Government Programme.
- Outcome: Completed on plan with no effect on Tesi's result.
Anchoring Lifeline Ventures S3
- What: Tesi was an anchor investor in a EUR 400M fund, Finland's first VC fund of European scale.
- When: 2025
- Size: EUR 400M fund
- Why: The 2025 strategy targets larger VC funds that can lead big rounds.
- Outcome: Largest VC fund in Finnish history.
Record year for direct deals S3 S4
- What: Tesi put EUR 301M into 34 companies, including new stakes in Ren-Gas, Norsk e-Fuel and NestAI.
- When: 2025
- Size: EUR 301M
- Why: Scale-ups and industrial projects need bigger tickets.
- Outcome: Supported by a EUR 100M first instalment of a EUR 300M capital injection.
Investment process
A limited company governed by law and decree; its Board of Directors and management take investment decisions on market terms under the ownership steering of the Ministry of Employment and the Economy. S4
| Committee | Role |
|---|---|
| Board of Directors | Oversees strategy and investment activity S4 |
- Company or fund manager makes contact through the investment process pages. S4
- Team screens for market terms and private co-investors. S3
- Due diligence and investment decision. S4
- Minority stake held and later exited; proceeds reinvested. S3
How to approach: Separate routes for companies, for fund managers raising capital, and for co-investors and KRR investors. S4
Size and returns
- Headline size: EUR 3.2B (Assets under management, as of 2025-12-31) S3 S5
- In US dollars: about USD 3.76B. At 0.85106 euros per US dollar, ECB reference rate for 31 December 2025.
- Balance sheet total, June 2026: EUR 3.38B (Total assets (balance sheet), as of 2026-06-30) S4
- Shareholders' equity, June 2026: EUR 3.10B (Net assets or equity, as of 2026-06-30) S4
- Return, 2025: 7.9 percent (return on equity) S4
- Size over time (EUR billion): 2024 2.6, 2025 3.2 S3
Leadership
The fund does not publish named leaders.
Governance and transparency
- Legal basis: Act of Parliament on Tesi and related decree; Finnish Companies Act S1 S4
- Oversight: Ministry of Employment and the Economy S4
- Industrial Subsidy Ltd is reported separately because it involves state aid. S4
- Publishes a corporate governance statement and remuneration report each year. S3
Transparency score: 9.5 of 10 (band 5 of 5). Our own 10-item rubric; see the methodology page.
History
| Date | Event |
|---|---|
| 1995 | Founded with state asset sale proceeds. S1 |
| 1996 | Investing begins. S1 |
| 1997 | Technology Fund set up with Sitra. S1 |
| 2003 | Finnvera and Sitra fund units join Tesi. S1 |
| 2007 | Allowed to invest internationally. S1 |
| 2010 | First international fund commitment. S1 |
| 2013 | Majority owner of Aker Arctic. S1 |
| 2018 | Co-financing programme with the EIB. S1 |
| 2025-05-31 | State VC units merged into Tesi. S3 |
For family offices
Tesi always invests alongside private money and runs a co-investor route and KRR funds-of-funds for institutional investors. Family offices can meet it as an LP in Finnish VC funds or as a co-investor in rounds. S4 S3
- KRR funds-of-funds open to outside investors. S4
- Co-investment in direct rounds with private investors. S3
- Tesi as a co-investor: Private investors in Finnish growth rounds https://tesi.fi/ S4
- KRR funds-of-funds: Institutional investors https://tesi.fi/ S4
Reports
- Financial Review 2025: https://tesi.fi/wp-content/uploads/2026/03/Financial-Review-2025_final.pdf S6
- Interim Review 2026 and key figures: https://tesi.fi/en/about-tesi/financial-figures/ S4
Common questions
How big is Tesi?
EUR 3.2 billion of VC and PE investments under management at end 2025, about USD 3.8 billion. S3 S5
Who owns Tesi?
The State of Finland, through the Ministry of Employment and the Economy. S4
Does Tesi invest abroad?
Mainly through funds; 887 of its 1,463 portfolio companies are international. S4
What did Tesi invest in 2025?
EUR 425 million, a record, in funds and 34 companies. S3
Related profiles
- Russian Direct Investment Fund (RDIF) Russia · USD 10B
- Government Pension Fund Global (Norway) Norway · NOK 22,683B
- Turkiye Wealth Fund (TWF) Turkiye · TRY 18,997B
- National Wealth Fund of the Russian Federation Russia · RUB 13,194.9B
- Bpifrance France · EUR 106.3B
- Folketrygdfondet (Government Pension Fund Norway) Norway · NOK 429B
All sovereign wealth funds in Europe · All fund of funds or co-investment platforms · All funds in Finland
Sources
Disclaimer
Informational only. SovereignWealthFunds.com is an independent public-source reference. It is not affiliated with or endorsed by any fund named on it, and it is not investment, legal or tax advice. Figures are as of the dates shown next to them and may have changed; please read each fund's official pages, linked on its profile. To report an error, use the contact page. Copyright SovereignWealthFunds.com. All rights reserved.
