Finnish PE/VC News
Technology foundations and associations choose eQ to build close to 80 million euro private equity program
The Federation of Finnish Technology Industries, Technology Industries of Finland Centennial Foundation and nine other technical and technology sector foundations and associations (a.ka. TSR Cooperation) have chosen eQ to manage a joint Special Investment Fund investing in Northern European and US private equity funds. The estimated size of the Fund is close to 80 million euros.
With the new fund the size of commitments to private equity of The Federation of Finnish Technology Industries will increase to 25% in the next few years. Globally, and especially in the US, successful foundations have allocated even more to private equity. The TSR Cooperation is also a pioneer using a Finnish Fund structure in its private equity investments.
”Fixed income yields have dwindled and currently only higher risk interest bearing instruments offer any yield. Listed equity has had a long bull run and has lately become very volatile. We have systematically increased our allocation to alternative investments over the last 3-4 years. As a long term investor, private equity suits our needs very well, which is reflected in our recent allocation decisions. Risk adjusted, private equity has been historically the best returning asset class’’, concludes Esko Keskinen, Director of The Finnish Federation of Technology Industries. The TSR Cooperation is chaired by Vuorineuvos (Finnish honorary title) Stig G. Gustavson.
Staffan Jåfs, Head of Private Equity at eQ Asset Management Ltd, says the TSR Cooperation decisions are a major milestone. ’’It’s great to see a major long term investor making decisions for the long term, both with regards to the return potential and to finance the fastest growing unlisted companies. Long term investors are able to capture the liquidity premium in the private equity markets, which enhances portfolio return potential. This is the reason we are seeing an overall increase to private equity allocations right now. TSR Cooperation decision shows leadership in seizing the opportunities in alternative investments. Successful private equity investing requires resources, contacts and long experience. The private equity team of eQ is one of the most experienced in the Nordic Countries and the supporting functions of our group enable us to offer a complete package in private equity’’, concludes Jåfs.
Helsinki 20 June 2016
eQ Asset Management Ltd
For additional information:
Staffan Jåfs, Head of Private equity, eQ Asset Management Ltd, phone: +358 (9) 6817 8736