VNT management funds focus on clean technology

This is an interview article about Mr. Jarmo Saaranen, a Managing Partner at VNT Management, conducted by Mr. Burak Buyukdemir, a VC, and the CEO of Etohum, a Turkish accelerator program.

VNT Management, was established in 2002, it’s a Finnish fund manager for three private equity funds. Power Fund I, which has 16.9 million Euros, Power Fund II with 62.8 million Euros and Power Fund III with 77.0 million Euros, bringing it to a total of 157 million Euros.

VNT funds focus on clean technology, particularly on renewable and distributed power generation and energy-saving technologies in electrical and power electronics applications. The funds invest in European early and growth phase companies.VNT Management is a member of Finnish Venture Capital Association and complies with the guidelines set to promote transparency in private equity and venture capital industries.

VNT complies with the rules and recommendations of FVCA for responsible investing and recognizes the UN Principles of Responsible Investment (UNPRI) and believe that companies aligning to the Environment, Social and Corporate Governance Principles (ESG Principles) in their corporate responsibility (CR) work will be more attractive investments than other companies in the long run.

In 2003, VNT Management were one of the first in the world to establish a fund for green and renewable energy, with a focus in electrical systems.

Jarmo Saaranen serves as the Managing Partner and Chairman at VNT Management. He has been a Partner of the firm since 2003 and became the Chairman in 2012. Currently, he is working to setup a new fund for new investments with a broader territory.

Mr. Saaranen’s  work history includes ABB, R&D, sales, supply chain, production and business line management positions from 1984 to 2003. He has been a member of several boards. He was the Chief Executive Officer and Chairman of Mervento. He served as Chairman of the Board of Cavitar Ltd and is still Chairman in Cajo Technologies Oy. Mr. Saaranen has experience and top engagements in substation automation and electrical machines in ABB.He has good experience in the electrical engineering industry for more than 35 years.

Mr. Saaranen, mentioned that the smallest investment the company has made so far is one million Euros and the largest investment in the lifetime of the company has been 10.5 million Euros. Noting that the average investment is within 3 to 5 million Euros, and they typically require that a prototype is available before an investment is made.

VNT assets under management is currently at 157 million Euros, and Mr. Saaranen mentioned that they are hoping to raise a 100 million Euros for the next fund.