State capital investment activities to be enhanced already in 2024, as practical implementation of corporate restructuring in accordance with the Government Programme proceeds

According to the programme of the Petteri Orpo’s Government, state capital investment activities will be enhanced by centralising them in Finnish Industry Investment Group. Since autumn 2023, the Ministry of Economic Affairs and Employment has comprehensively evaluated the various options for the implementation of corporate restructuring and has decided on a model in which the operations of Climate Fund and Oppiva Invest will cease in their entirety in 2024 and the operations of Business Finland Venture Capital will cease in their present form.

By the decision of Minister of Economic Affairs Wille Rydman and the favourable opinion of the Ministerial Committee on Economic Policy, the operations of Climate Fund and Oppiva Invest will be wound down immediately and the companies will not make new investment decisions. The operations of Business Finland Venture Capital will cease in their present form by the end of 2024, but will continue within the new Finnish Industry Investment Group (Tesi). To implement the restructuring, the ownership steering of Oppiva Invest will be transferred by Government decree from the present Finnish National Agency for Education to the Ministry of Economic Affairs and Employment, after which the Ministry of Economic Affairs and Employment will be responsible for winding down the operations of Oppiva Invest as part of the state capital investment company project.

The boards of directors of all three companies will be changed to prepare and implement the arrangements. The assets and liabilities of the companies will be transferred to the new Tesi Group at the time of implementation of the corporate restructuring, which is currently estimated to be 31 January 2025. The legislative process related to the merger is progressing as planned. 

 “The Government’s main goal is to return Finland to a growth path. Centralising state capital investment activities is part of this work. The aim of centralisation is to boost company growth, improve the effectiveness of industrial and business policy and create synergies. A further goal is to make the most efficient use of limited central government resources. The decision is also in line with central government adjustment decisions made in the Government’s spending limits discussion,” says Minister of Economic Affairs Rydman.

 “The restructured Finnish Industry Investment has been given a broader industrial policy mandate and, in the Government’s spending limits discussion, a related additional capitalisation of EUR 300 million for direct investment in industrial investment projects. The role of public funding has never been to compete with private capital, but to facilitate domestic companies’ decisions and investments in key industrial projects,” continues Rydman.

In accordance with the Government Programme, the tasks, priorities and instruments of all state capital investment companies have been thoroughly assessed with regard to, among other things, effectiveness and cost-efficiency, and have been measured against the objectives set out in the Government Programme to enhance their industrial and business policy impact. 

With the now selected implementation model, the funding allocated to capital investment activities will be more strongly directed towards return-oriented investment activities, where the principles are a market-based approach, the suitability of companies that have received funding to receive further funding and the greatest possible channelling of private capital into the market. It is estimated that efficiency benefits will amount to EUR 5–6 million per year, and that the benefits will be achieved nearly in full by 2026.

Inquiries: 
Lassi Noponen, Special Adviser to the Minister of Economic Affairs, tel. +358 50 407 6033 
Juhapekka Ristola, Director General, Ministry of Economic Affairs and Employment, tel. +358 29 504 7399