Another captive breaking free

Nordea Bank Finland is to sell its subsidiary Nordea Capital to three regional private equity companies, Aboa Venture Management Oy, Teknoventure Management Oy and Oy Wedeco Management Ab. The objective is to create a leading Finnish private equity company investing in the SME sector across Finland.

Nordea Capital was established in 1989. Since 1994, the company has concentrated on private equity investment and management of capital funds. The firm currently manages two funds, Profita Fund I and Profita Fund II Total capital under management is about E60m.

Nordea will continue to act as an investor in the funds with a 15% holding. The Profita funds managed by Nordea Capital will continue their operations within the new company, and the deal will have no effect on their operations.

Nordea’s strategy is to concentrate on its core business. It has stated that private equity investment activity does not form part of this strategy. Giving up its majority holding, but retaining a stake in the fund is, therefore, a natural way for Nordea to act as a regional financier of SMEs in Finland, says Pekka Nuuttila, executive vice president of Nordea.