FVCA Yearbook 2006 - Suomen pääomasijoitusyhdistys ry

STATISTICS
Partial and complete write-offs represented 8 % (11 %) of the total divestment amount in
2005 at 25 million (29 million) euros. In 2005 partial or complete write-offs were made
from 26 investments.
CAPITAL UNDER MANAGEMENT
The total capital under management of the Finnish private equity companies totalled
3,407 million euros in the end of 2005. Of this amount, 54 percent was already invested
in portfolio companies and 39 percent was available for follow-on investment rounds and
for new investments.
ACTIVE INVESTMENT PORTFOLIO
The active investment portfolio consisted of 745 portfolio companies in the end of 2005.
The value of the active investment portfolio amounted to 1,822 million euros at cost.
The largest industry sectors that are represented in the active portfolio are medical-related
industries with 251 million euros (10,4 %), industrial products and services with 191 million
euros (7,9 %) and electronics with 182 million euros (7,5 %).
PORTFOLIO COMPANY INFORMATION
Most of the Finnish private equity houses’ investments are still made in small and medium
size companies. A total of 48 % (73 % in 2004) of portfolio companies employs not more
than 50 people. Median of the number of employees is 55 (52) persons. Due to several
larger buyout-backed portfolio companies the average number of employees is a little
over 964 persons.
Typical portfolio companies are small also in terms of turnover, but have on average
grown more than in previous years. 29 %(58%) of portfolio companies generate a turnover
of 2 million euros or less. Median turnover is 3.6 million euros and average turnover is,
also as result of buyout deals, 78 million euros.
MANAGEMENT COMPANY INFORMATION
Finnish private equity industry has experienced significant growth since it took off in the
late 1980’s. In the end of 2005 the Finnish Venture Capital Association had 42 private equity
companies as full members. Today these private equity companies employ approximately
249 managers and 140 other employees. The companies managed 113 private equity funds
in the end of 2005.
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