News releases
The privatization of MB Funds
(Press release 8.5.2002)
The finnish buy-out specialist ,MB Funds, is now wholly owned by the managers. Sampo was earlier a partner in the management company. The change in ownership was initiated by the closing of MB Equity Fund III, one of the leading finnish buy-out funds.
According to Juhani Suomela, the Managing Partner in MB Funds, this transaction represents a natural step in the development process and reflects the trend in the private equity industry.
- Many of the private equity firms were originally established in cooperation with a bank, and later they were spinned-off as independent companies. For us this is a logical step forward. The change of the ownership concerns solely the fund management whereas the funds investment activities remain as they are. Our good cooperation with Sampo will continue and Sampo will also in the future be among our main investors.
- From Sampo's point of view this transaction represents a positive and logical development. Our cooperation will remain strong . We will offer the services of MB Funds to our customers also in the future, says executive vice president Mika Ihamuotila from Sampo.
MB Equity Fund III will strengthen MB Funds position on the market. It is a finnish buy-out fund with focus in corporate restructuring- processes such as MBO's. The first closing of MB Equity Fund III is at 96,1 million euros but the final closing target is substantially higher.
The capital to MB Funds has been provided by twenty finnish prime institutional investors, mainly insurance companies and pension funds. The investors in MB Equity Fund III are largely the same as in MB's earlier funds.
Later stage investments
MB Funds invests in businesses which are already in a later stage of their development. The firm is specialized in buy-out situations (MBO's) and industry restructurings. MB Funds has also a strong track record and expertise in privatization processes.
- Our investee companies include among others, Engel Group, Medivire, Panda and Finnish Chemicals. Our investment philosophy is characterised by a strong sense of responsibility for the success of our investee companies and for the prudent management of our investors funds. The managers have a strong track record in business management and an extensive expertise in financial and capital markets, says Juhani Suomela.
MB Funds manages five separate funds with a value of 269 million euros. MB Funds have so far invested in 20 companies. All investments have been successful - no write-downs have been made.
Additional information:
Juhani Suomela, MB Funds, tel 358-9-1310 1302
Mika Ihamuotila, Sampo, tel. 358-10 51510