Government proposes to reform state capital investment activities

On 5 September 2024, the Government proposed to amend the Act on Finnish Industry Investment (Tesi) and to enact a new act on a wholly state-owned limited liability company known as Teollisuustuki Oy. Following the amendments, Tesi Group would be better positioned to operate as an effective state capital investment and corporate financing company.

The reformed Finnish Industry Investment will be given an industrial policy task with a stronger focus on economic growth, renewal and promotion of investments. Investments in new technologies, opportunities created by the clean transition and growth-oriented medium-sized enterprises (“Mittelstand”) will be at the core of the company’s activities. 

The aim is that, together with private sector investments, innovations will be commercialised and scaled more quickly and the growth of companies and exports will be boosted. Simultaneously, the new company will be able to accelerate innovation and business ecosystems formed around technologies, for example, and to act as a competent owner together with the competent private capital operating in Finland, thereby strengthening domestic ownership.

The company will fix and supplement the bottlenecks in the private equity market. When a certain part of the market starts to operate sufficiently well with private financing, the company will withdraw from the market. The company will operate on market terms.

The Government’s proposals will simultaneously repeal the acts on Climate Fund and Business Finland Venture Capital (BFVC). The state aid operations of the new Finnish Industry Investment will be spun off into a separate subsidiary, Teollisuustuki Oy. Climate Fund Oy and Oppiva Invest Oy will be terminated as per the decisions made in May. In future, their market-based assets and those of BFVC will be used to support Tesi’s renewed task and activities.

The Ministry of Economic Affairs and Employment will be responsible for the steering of Tesi and its state aid company Teollisuustuki. 

Reforming the state capital investment activities is part of the Government Programme. The acts are scheduled to enter into force on a date specified by a government decree at the turn of 2024-25.

Inquiries: 
Mikko Huuskonen, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 3732