Folmer invests responsibly in Finnish SMEs that have passed the early stages of development, possessing the necessary attributes for unrealized growth potential. The revenue size of a typical investment target is 2–25 MEUR, with an enterprise value of 3–15 MEUR.
Folmer’s investment criteria
- Primarily in majority stakes, co-investments considered case-by-case together with independent investors
- Companies with distinctive competence relative to others in the industry, and a capacity to use the competence in a profitable manner
- The company and the industry have been analyzed, and determined to be favorable
- Companies with an entrepreneurial mindset, with highly skilled and committed staff
Folmer currently manages over 90 MEUR in its two funds.
Folmer’s latest fund, Folmer Equity Fund II Ky, made its first closing during early 2017 at 62 MEUR. The main investors in Folmer Equity Fund II Ky are European Investment Fund, Tesi, KRR II, Cubera and Finnish institutional investors such as Tradeka-invest, OP Insurance, ELO and OP Life Assurance Company. Folmer Management has also invested in the fund.
Folmer’s first fund, Folmer Equity Fund I Ky, was established in 2009 with a final value of 30,7 MEUR. The biggest investors of Folmer Equity Fund I Ky are FoF Growth, VR Pension Fund, Mandatum Life, PFA Pension, Sitra, OP Life, Trade Union Pro and Trade Union of Education in Finland.
Since its establishment, Folmer has taken into account sustainability and related value creation aspects and risks as part of its decision making and development work. This ESG (environmental, social and governance) approach in investment decisions and as part of the portfolio company development helps Folmer to develop better companies and thereby achieve higher risk-adjusted returns. Folmer implements the principle of exclusion by refraining from making investments that are not considered responsible. In our stakeholder communications, we emphasize the principle of transparency. We believe that the active development of responsibility and sustainability factors will create competitive advantage for the companies. Folmer takes into account the development of sustainability and responsibility approach as part of the future value creation of the portfolio companies and supports the companies in the path of continuous development. Folmer strives to be an active, long-term and responsible partner for its portfolio companies, investors and other stakeholders.
Folmer Management Oy is a registered alternative investment fund manager approved by the Financial Supervisory Authority (162/2014, AIFML). Folmer complies with all laws and regulations (including regulations related to customer identification and money laundering). Folmer reports to its investors on a quarterly basis on the development of portfolio companies using Invest Europe’s reporting guidelines.
Read more about Folmer’s ESG principles here, and information with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts in our processes can be found here (in Finnish).
Folmer Equity Fund II Ky benefits from the support of the European Union under the Equity Facility for Growth established under Regulation (EU) No 1287/2013 of the European Parliament and the Council establishing a Programme for the Competitiveness of Enterprises and small and medium enterprises (COSME) (2014-2020). Businesses can contact selected financial institutions in their country to access EU financing: www.access2finance.eu.