VNT Management's Power Fund III holds final close

VNT's fund held a first close in November 2011. From launch to first close it took Power Fund III approximately six months, and then a further 10 months until the fund's second close.

VNT's previous vehicles Power Fund I, launched in 2007, and Power Fund II, launched in 2011, had the same focus and scope. Investors were pleased with their track record. Power Fund III is the third venture capital fund managed by VNT.

The target was €75-100m. However, the climate changed during fundraising, the GP told unquote", and VNT had to lower their expectations and settle on €77m.

The fund has a lifespan of 10 years.

Investors
The fund's LP base includes the European Investment Fund – investing under the Competitiveness and Innovation Framework Program (CIP) – Finnish Industry Investment, The Growth Fund of Finland and Varma Mutual Pension Insurance Company.

The European Investment Fund was involved for the first time and provided €25m.

The three second largest investors provided €10m each. Some smaller German investors also joined. VNT provided 4% of their own money.

The investors are based in Finland and the rest of Europe.

Investments
Power Fund III invests in early- and growth-stage energy technology companies, primarily in Finland and Germany. The fund has already made investments in three Finnish companies: Fixteri Oy, a producer of forest balers designed to collect wood for energy use; Valopaa Oy, focusing on LED lighting fixtures; and fuel cell systems developer Convion Oy.

According to the GP, Power Fund III will make approximately 8-10 investments, with two or three of them potentially done in German companies.

A large part of the fund will be reserved for follow-on rounds. Investments will be in the range of €1-5m per transaction, twice a year on average. A fourth deal is in the pipeline during the coming days.

People
Jussi Palmroth is managing director at VNT, while Jarmo Saaranen is chairman of its board.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Nordics
• Venture
• Now researching
• Technology
• Finland