We advised the Finnish state-owned private equity company Tesi as it agreed on a EUR 100 million co-investment facility with the European Investment Bank (EIB). The purpose of the co-investment facility is to aid Finnish SMEs that have encountered Covid-related economic difficulties.
Tesi and EIB will invest EUR 50 million each, and the focus will be on capital-intensive technology sectors such as ICT, healthcare and industrial/deep tech. The co-investment facility will be managed by Tesi, and it has an investment period of three years.
Financing will be provided to innovative Finnish SMEs in the form of quasi-equity financing, and it is structured to be complemented by at least an equal amount of private sector co-investments. EIB financing under the facility falls under the European Guarantee Fund, which was set up by the EIB Group with contributions from Finland and other EU Member States to shield companies suffering from the COVID-19 crisis.