EIF Invests €20 Million to Boost Finnish Growth Businesses

The fund will focus on technology-driven businesses with limited physical assets and will provide loans ranging from €500,000 to €2 million, helping companies invest in expansion, innovation, and long-term growth.

The European Investment Fund (EIF) has committed €20 million to SP Growth Fund Ky, a new private credit fund created to provide growth financing for small and medium-sized businesses in Finland. The investment is expected to improve access to funding for companies with strong commercial potential that often struggle to secure traditional bank loans.

The fund will focus on technology-driven businesses with limited physical assets and will provide loans ranging from €500,000 to €2 million, helping companies invest in expansion, innovation, and long-term growth.

Investment supports Finland's private credit market

The EIF's commitment enabled SP Growth Fund to complete its first fundraising round with €34 million, bringing it more than two-thirds of the way towards its €50 million target. The remaining capital raised so far has come from Finnish institutional and private investors.

EIF Chief Executive Marjut Falkstedt said Europe needs more financing options for innovative businesses that are ready to grow but face challenges accessing conventional bank lending. She said supporting SP Growth Fund will strengthen Finland's private credit market while giving ambitious companies the financial backing they need to compete and expand.

The EIF investment is backed by InvestEU, the European Union's flagship investment programme, which supports projects that improve innovation, competitiveness, and access to finance across Europe.

Fund aims to help companies invest and create jobs

SP Growth Fund is managed by Finnish investment manager SP Growth Partners Oy and will invest exclusively in Finnish businesses, including small mid-sized companies. The managers say the fund has been designed to meet the growing demand for flexible financing as lending conditions become more challenging under tighter banking regulations.

SP Growth Partners Co-Founder Matias Itkonen said many Finnish growth companies have strong business models and ambitious expansion plans but are finding it increasingly difficult to secure funding. He said the new fund will provide flexible financing that enables businesses to invest, grow, and create jobs while strengthening Finland's innovation-driven economy.