14.10.2022

Finnish Climate Fund – Cornerstone investment in Taaleri Bioindustry I fund

Related services

We advised the Finnish Climate Fund as it invested in the alternative investment fund Taaleri Bioindustry I. The investment commitment of the Finnish Climate Fund was EUR 15 million.

The Taaleri Bioindustry I fund supports the development of bioindustry primarily in Finland. The target fund is the first private equity fund in Europe that focuses purely on bioindustry projects. The fund is also one of Finland’s first private equity funds to be classified as dark green, i.e. funds under Article 9 of the EU’s Sustainable Finance Disclosure Regulation.

We acted as a comprehensive advisor in drafting the documentation concerning the fund investment and in negotiations while taking into account the unique issues and requirements of the role of a cornerstone investor in the Finnish Climate Fund. When providing advice, we focused particularly on the SFDR and the dynamic and transient regulatory issues relating to compliance with the SFDR.

Our team

Latest references

Institutional Investors – Fund Investments

We advised and assisted our Finnish and international clients in dozens of fund investments in 2021. Our clients include pension institutions, asset management companies, fund management companies, foundations, private equity companies and listed companies. Individual fund investments amounted to approximately EUR 10–20 million on the average. Our advice related to both Finnish and foreign fund investments. The funds’ investment strategies varied mainly from different private equity funds (such as buyout, venture capital, private credit) to real property funds (such as real estate, infrastructure) and funds of funds, i.e. funds that invests in other types of funds using various strategies. Our task has been to ensure, in particular, that the commercial and administrative terms of the funds that are invested in are fair to the investor and are in line with customary market practice. To this end, we have negotiated the terms of the funds with fund managers. We have also ensured that the fund investment fulfils the constraints of national regulation applicable to our client and their potential investment policy. We have also advised our clients in other general issues that relate to the due diligence process of fund investments. We have also been actively assisting our clients in fund investments previously over the years. Our experts Antti Vepsä and Karlo Siirala discuss the specific issues relating to fund investments in their blog: Private Equity Fund Legal Due Diligence: How to Conduct It More Efficiently

OP and Finnfund – Establishment of a New Global Impact Fund

We represented OP and Finnfund in the establishment of Finland’s first impact fund that will invest into emerging markets. The OP Finnfund Global Impact Fund I will promote the achievement of the UN Sustainable Development Goals in a measurable way while providing an attractive return for investors. As a new type of fund in the Finnish market, the fund will seek systematic and measurable impact, primarily by investing into projects in the fields of sustainable agriculture and forestry, renewable energy and financial institutions. The investments will support mitigating and adapting to climate change, creating sustainable employment, as well as safeguarding affordable and clean energy. The fund will invest in developing countries defined by the OECD. OP Fund Management Company Ltd will act as the Alternative Investment Fund Manager (AIFM) of the fund. OP Financial Group is Finland’s largest financial services group whose mission is to create sustainable prosperity, security and wellbeing for its owner-customers and in its operating region by means of its strong capital base and efficiency. OP Financial Group consists of 143 OP cooperative banks, its central cooperative OP Cooperative, and the latter’s subsidiaries and affiliates. The Group has a staff of 12,000 and 2 million owner-customers. Finnfund is a Finnish development financier and professional impact investor. Finnfund builds a sustainable world by investing in responsible and profitable businesses in developing countries. Each year Finnfund invests 200–250 million euros in 20–30 projects, emphasising renewable energy, sustainable forestry, sustainable agriculture and financial institutions. Today Finnfund’s investments and commitments total about 800 million euros, half of them in Africa. The company has approximately 80 employees.

VTT – Fund Formation of Voima Ventures Fund II for anchor LP

Castrén & Snellman represented VTT Technical Research Centre as a cornerstone investor in the establishment and fund formation of new €50 million fund focusing on deep technology. Voima Ventures is a truly deep tech fund launched in the spring 2019 and investing across all stages, starting from a spin-off and seed, up to series A and growth. Voima Ventures primarily invests in Finland, the Nordics and the Baltics and combines science-driven innovation together with the Nordic serial entrepreneurial experience and a global mindset. VTT Technical Research Centre of Finland Ltd is a state-owned provider of research and innovation services and information for domestic and international customers and partners, both in the private and public sectors. VTT is part of Finland’s innovation system and operates under the mandate of the Ministry of Economic Affairs and Employment. VTT Group has three subsidiary companies.

FIM – Establishment of Fund to Promote Child and Youth Welfare

We advised FIM in the establishment of the SIB fund focused on promoting child and youth welfare, including drafting documentation and addressing taxation questions. Social impact bonds (SIBs) are a good example of a new form of investment, which seeks to achieve social goals in addition to financial profit. The SIB fund established in this project is managed by FIM together with the Finnish Central Union for Child Welfare, the participating Finnish municipalities and the Finnish Innovation Fund Sitra. The activities of the fund are guided by representatives of the municipalities, the Central Union for Child Welfare and partner organisations providing child and youth services. The assets of the fund are used to finance projects promoting child and youth welfare. The fund’s profit is tied to the achievement of joint welfare goals, and the cost savings achieved are distributed between the municipalities and the fund’s investors. The fund is intended for professional investors.

Search from the site.