OPERATING MODEL

INVESTMENT STRATEGY

Our investment activities are focused on the real estate sector. Our targets include business properties, real estate development projects, and hotels which we operate ourselves. Alongside our direct real estate investments, we also invest in other companies in the real estate sector as well as Finnish forestry. Our investment targets typically have annual turnovers between 5 and 50 million euros. In our real estate investments, we are always the majority owner, whereas in other companies we are a minority owner.

Our investments are guided by our return on invested capital. Every investment decision is the result of a long, meticulous process of evaluation. Our primary focus is to find individuals, with whom our joint venture can develop into a sustainable companionship. We are diligent investors, and every decision is made extremely carefully. As we only invest our own capital, we don’t face external pressure to invest.

INVESTMENT SITUATIONS

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 projects, which are typically located around the extended capital region and in regional centers.

Outside the real estate sector, we typically invest in companies going through changes, where the firm is undergoing a generational change, looking to grow through acquisitions, or attempting to expand internationally.

ROLE IN PORTFOLIO COMPANIES

We are active owners in our portfolio companies. Our corporate governance is founded on personal collaboration with the firm’s other owners and its management. 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 team at Korpi Capital is always ready to assist any of our portfolio firms in their needs.