Eqvitec spins out its mezzanine business to the mezzanine team

Eqvitec Partners Oy announced today that it has decided to focus its operations on equity based growth financing and sell its mezzanine operations to Armada Mezzanine Capital Oy, established by a team consisting of Pertti Nurmio, Ilkka Santti and Jan Wiklund, previously responsible for the mezzanine business at Eqvitec. The disposal of the mezzanine operations allows Eqvitec to focus purely on equity investments in Nordic technology oriented growth companies. Further, the transaction offers Armada Mezzanine more focused and dedicated operations for the benefit of its stakeholders.

The spin-out creates the leading independent mezzanine firm solely focused on the Nordic region. The funds under management of Armada Mezzanine exceed €150 million. Its most recent fund, Eqvitec Mezzanine Fund III (to be renamed as Armada Mezzanine Fund III), focuses on financing buyouts and expansion of small and medium-sized companies in the Nordic countries. The fund had a final closing in April 2009 at €103 million and has to date made three investments.

“It was 10 years ago when Eqvitec set up its mezzanine operations and since then we successfully raised three funds and expanded investment focus to all Nordic countries. During this growth the initial synergies that the equity and mezzanine operations enjoyed have gradually diminished, and our conclusion has been that independent focused operations are the best route forward for both”, says Kimmo Jyllilä, Managing Partner of Eqvitec Partners Oy.

“This is very exciting and we are grateful for Eqvitec and all the investors for their trust and for providing us this opportunity. Armada Mezzanine team will continue its proven and successful investment strategy having a true Nordic focus operating from the offices in Helsinki and Stockholm. We see increased activity on the Nordic buyout market after a rather challenging 2009 and believe this year will be a very good year for mezzanine”, says Pertti Nurmio, Managing Partner of Armada Mezzanine Capital Oy.

For further information, please contact:
Kimmo Jyllilä, Managing Partner, Eqvitec Partners Oy, tel. +358 40 502 5105, email: kimmo.jyllila@eqvitec.com

Pertti Nurmio, Managing Partner, Armada Mezzanine Capital Oy, tel. +358 50 550 2324, email: pertti.nurmio@armadamezzanine.com

About Eqvitec Partners Oy
Eqvitec Partners (www.eqvitec.com) is one of the largest technology oriented private equity firms in Northern Europe. The company was founded in 1997 and employs 10 investment professionals in Helsinki and Stockholm. Eqvitec Partners currently advises three funds with a total capital base of over 300 million euros. The funds invest in technology companies in the expansion stage. At the moment the funds have investments in 30 companies and have carried out over 40 exits.

About Armada Mezzanine Capital Oy
Armada Mezzanine is a newly established independent mezzanine firm focused on financing buyouts and expansion of Nordic small and medium-sized companies. Armada Mezzanine was founded to manage the mezzanine business acquired from Eqvitec Partners Oy. Armada Mezzanine has four employees in its Helsinki and Stockholm offices and it manages two mezzanine funds with a combined capital base of over 150 million euros. For more information and contact details please see www.armadamezzanine.com.