Vaaka Partners’ new fund continues its successful strategy of growing companies
Vaaka Partners’ new fund continues its successful strategy of growing Finnish medium-sized companies
The Finnish private equity firm Vaaka Partners has raised a new fund, the Vaaka Partners Buyout Fund II Ky. The fund has a size of EUR 101 million euros as the investment period commences in October 2012. The final closing will be done at the latest in summer 2013. The structure of the fund is a Finnish limited partnership. The investors in the fund are leading domestic and international institutional investors.
The fund continues the strategy of its predecessor fund, the Vaaka Partners Buyout I fund, and makes majority buyouts primarily in Finnish medium sized companies. Typical net sales of the target companies is between EUR 10-100 million. The aim is to build growth in the portfolio companies both domestically and internationally as an active owner. In practice, the active ownership means the close co-operation between the experienced Vaaka Partners’ team and network, and the operative management of the portfolio companies.
Vaaka Partners’ way of working together with the operative management has created significant growth. The portfolio companies acquired between 2008-2011 in the preceding fund (Reima, Renewa, Musti ja Mirri, Nesco,and Ovenia) combined have profitably grown their revenues over 90% and their personnel over 80% during the ownership period. The majority of the growth has been organic, in addition to which growth has been supported by strategic acquisitions. Organic growth has created some 250 new jobs combined.
Vaaka Partners’ latest investment was made in Produal in the beginning of October. Produal is the market leader in building automation measurement and control devices. The investment was also the preceding fund’s sixth and last platform investment. The target is to support Produal’s growth in its current markets and to accelerate the company’s internationalization.