Varma expands investments in Finnish growth companies

Written by Callum Conway

22/09/2025

Varma has expanded its allocation to unlisted growth companies with four new domestic investments, reinforcing its commitment to Finnish enterprises, which already account for around 20% of its portfolio.

The €59bn pension insurer has backed satellite manufacturer ReOrbit, cloud services provider DataCrunch, battery technology firm IONCOR, and quantum computing company IQM through recent financing rounds, with its investment aimed at accelerating their internationalisation and growth.

Varma deputy chief executive, Markus Aho, said equity investments in unlisted growth companies are a "key part" of the modern capital market.

"For us, they are also the most natural place to finance Finnish growth,” he added.

Varma emphasised that all growth investments undergo strict screening under its investment principles.

“We invest where we see good return opportunities and international expansion potential, given the companies’ risk profile,” said investment director, Tommi Walther.

He explained that while such investments are naturally higher risk, they play an important role in diversifying Varma’s private equity portfolio and improving its return-risk profile.

The four companies span sectors seen as strategically important for Europe’s competitiveness.

IQM, which already counted Varma as a shareholder prior to its latest funding round, raised the largest total financing to scale international operations and expand chip production in Finland.

ReOrbit is developing satellite and defence technologies to secure communications in a shifting geopolitical environment, while DataCrunch is addressing the shortage of computing capacity in Europe for AI applications, using renewable energy to power its data centres.

Meanwhile, IONCOR, a recent spin-off from Valmet Automotive, is focusing on battery systems for the electrification of heavy-duty and commercial vehicles.

Varma said it typically invests as a minority shareholder with a long horizon and strong follow-on capacity.

“It is great that cooperation has intensified with Finnish growth entrepreneurs, domestic funds and other investors. We achieve results through close and open cooperation,” Aho noted.

The insurer added that foreign investors often see the presence of a domestic pension company as a signal of reliability.

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