vuosikirja / yearbook 2007 – 2008 - Suomen pääomasijoitusyhdistys ry

including buyouts). The number of investmentsin hi-tech companies was 242 (59 %).Hi-tech companies accounted for more thanhalf 61 % (56 %, 2005) of all the companiesthat received investment in 2006 (venturecapital and buyout).The companies classified as operating in e-commerce received investments of 16 millioneuros (5 % of the total amount invested).Companies in the e-commerce sector representeda 7 % share of all the companies thatreceived investments in 2006.Geographical distributionAccording to the survey methodology, theforeign investments of private equity companiesare included in the survey only ifthese investments are made directly and notthrough a foreign subsidiary (i.e. through apermanent establishment). 31 % (38 % in2005) of the investments made in 2006 waschannelled into foreign companies throughFinnish private equity funds..Investments made in Finland were againtargeted mostly at companies in SouthernFinland that received 62 % (54 % in 2005)of the total amount invested in Finland.Companies in Western Finland received 24% (26 %), while companies in Eastern andnorthern Finland received 4 % (2 %) and 10% (18 %), respectively.The regional breakdowns of the numberof investments are distributed similarly tothe total amount invested. Companies inSouthern Finland received 53 % (44 %) ofall individual investments in Finland. Of thetotal number of investments, companies inWestern Finland received 26 % (36 %) whilecompanies in Eastern and Northern Finland7 % (4 %) and 14 % (16 %), respectively.DIVESTMENTSDivestment information is used here tokeep track of what happens to the portfolioof Finnish private equity investments.Divestment amounts are reported at cost,rather than the amounts actually realised byany sale. It does not reflect returns or amountsthat private equity companies actually receive.In 2006 the amount divested once againreached a new record level of 399 millioneuros at cost. This marks the third year in arow that divestments at cost have reach a newhigh. Partial or complete divestments weremade from 271 (247) investments. Due to investmentsyndications, the number of portfoliocompanies divested is lower at 160 (165).The largest category of actual divestmentmethods was that of trade sales which accountedfor 35 % and 139 million euros.A total of 127 million euros was divestedthrough the repayment of principal of loans,30 million euros through sales to other venturecapitalists and 20 million euros throughbuy-backs (i.e. the sales of shares back tomanagement).Partial and complete write-offs represented11 % (8 %) of the total amount of 43 million(25 million) euros divested in 2006.CAPITAL UNDER MANAGEMENTAt the end of 2006 the total capital under themanagement of Finnish private equity firmstotalled 3,156 million euros. Of this amount,58 percent was already invested in portfoliocompanies and 42 percent available for follow-oninvestment rounds and new investments.staticticts25