OPERATING MODEL

INVESTMENT STRATEGY

Our investment activities are focused on companies that are the leaders in their respective fields. Alongside companies, we also invest in Finnish forestry and real estate. Our investment targets typically have annual turnovers between 5 and 50 million euros. We invest in companies typically as a minority owner, whereas in our real estate investments we are always the majority owner.

Our investments are based on the operational skill level of the portfolio companies and our return on invested capital. Before an investment decision, we evaluate the target company’s substance knowledge and operational competency very carefully. Our primary focus is on assessing the management, with whom our joint venture can develop into a sustainable companionship.

We are diligent investors, and every decision is made extremely carefully. When we make an investment, it is not necessary for there to be an exit-strategy. As we only invest our own capital, we do not face external pressure to invest or sell our holdings.

INVESTMENT SITUATIONS

We typically invest in companies going through changes, where the firm is undergoing a generational change, or a share of the owners are otherwise looking to exit. We offer entrepreneurs the opportunity for a partial exit and are there to assist in the subsequent growth process. Following our investment, our portfolio companies grow organically and their ability to grow through strategic acquisitions improves. We are also often involved in founding new companies when we meet very competent individuals.

In our real estate investments, we look for a tenant ranked within the top decile in their respective sector, and a 10-25-year lease. We require that the property serves the business purposes of the tenant well throughout the duration of the lease. We have focused our investments in this sector around conversion projects, which are typically located around the extended capital region and in regional centers.

ROLE IN PORTFOLIO COMPANIES

We are active owners in our portfolio companies. Our corporate governance is founded on personal collaboration with the firm’s management and other owners. We are also involved in the strategic leadership of the firm through our board positions in different firms. We only get involved in the operational management of the company if our know-how is specifically requested. Typically, this occurs in relation to potential mergers and acquisitions, capital raises, and international expansion. The whole team at Korpi Capital is always ready to assist any of our portfolio firms in their needs.