C&S Private Equity And M&A Report 2025

Introduction

This Private Equity and M&A Trend Report 2025 delves into the dynamic landscape of private equity and M&A activities in Finland.

Year 2025 was marked by persistent challenges, continued global uncertainty and cautious capital deployment, all set against a backdrop of geopolitical tensions and periods of market volatility. Yet beneath the surface, the foundations for recovery are being laid, driven by strong investor interest in technology, the green transition, and the strategic importance of Europe's defence sector.

In this report, we explore the key trends and developments that have shaped the market over the past year and offer insights into what lies ahead in 2026.

Private Equity and Private M&A

Key Developments in the Finnish M&A Market in 2025

The Finnish M&A market operated in a complex environment shaped by global economic uncertainty, geopolitical tensions, and periods of market volatility. These factors created headwinds early in the year but also highlighted the strategic importance of sectors such as defence and technology, which attracted strong investor interest. Dealmakers responded by adjusting deal structures and timelines to manage risk and preserve execution certainty.

Overall transaction activity was modestly softer than in 2024, reflecting caution rather than a lack of appetite for quality assets. Technology-driven businesses and industrial platforms continued to attract interest, and greater market predictability toward mid-year helped restore confidence. In the second half of the year, market conditions improved further as geopolitical tensions eased and sentiment strengthened. Buyer confidence returned and processes accelerated, particularly for technology assets, software-driven businesses, and niche industrial targets.

From a startup perspective, Finnish companies raised EUR 251 million in venture capital in the first half of 2025, up 88% compared to 2024, although the number of funded startups fell by 19%. The second half of the year brought several landmark funding rounds, including Oura's EUR 777 million, IQM's EUR 275 million and ICEYE's EUR 150 million rounds, which helped position 2025 as one of Finland's strongest years for growth financing, reinforcing the country's role as a hub for deep tech and globally scalable innovation.

Investment Thesis and Market Drivers

Investor attention in 2025 concentrated on digital transformation, green transition, and operational resilience. By deal value, healthcare, TMT, and energy & natural resources dominated, while by deal count, industrials, technology, and business services led the way. Private equity remained a key force in the market, concentrating on technology, software, healthcare, and renewables.

Several structural themes shaped the market. Continuation vehicles remained in use to retain high‑performing assets while unlocking growth capital, for example at Vexve, Mehiläinen, and PHM Group. Add‑ons and buy‑and‑build strategies accelerated in technology‑enabled services and industrial niches where fragmentation supports scale and synergies. Carve‑outs were prevalent as corporates sharpened portfolios. AI resilience and integration emerged as a diligence lens, particularly for tech‑enabled targets.

Deal Structures and Execution Trends

On the execution side, locked-box purchase price mechanism remained the dominant auction structure, and hybrid pricing models appearing in some cross-border deals that combine locked-box certainty with limited post-closing adjustments. In one-on-one setup closing accounts was a frequently applied mechanism. W&I insurance remains a well-established feature in Nordic mid-market transactions. Coverage terms of W&I insurance have continued to broaden, often including tax risks, while underwriting timelines have shortened due to increase in competitive insurer capacity. Escrows are increasingly limited to narrow, specific identified risks rather than broad warranty indemnities, further reflecting Nordic dealmakers' preference for speed and certainty.

Sector Highlights

Healthcare and Life Sciences

Healthcare reaffirmed its position as a cornerstone of Finnish dealmaking. The standout deal, Hellman & Friedman's over EUR 2 billion investment in the healthcare company Mehiläinen, reinforced strong international interest in the sector. Mehiläinen's international expansion included the acquisitions of InMedica Group in Lithuania, Regina Maria in Romania and MediGroup in Serbia, while Mehiläinen's transactional activity in Finland continued with bolt-on acquisitions focused on elderly care. Other notable activity in the sector included Pihlajalinna's divestment of its special housing services business to Esperi Care, transferring over 100 employees, and a series of regional consolidation moves among private providers. These transactions reflect a broader trend toward scale and integrated service models, which is expected to sustain healthcare M&A momentum into 2026.

Technology, Defence and Digital Infrastructure

Technology was the most dynamic segment of the Finnish market, with activity spanning software (especially software as a service), cybersecurity, space technology, quantum computing, artificial intelligence, and connectivity. In cybersecurity, the takeover of WithSecure by CVC and the company's founder marked a major consolidation. ICEYE's landmark Series E funding round, led by General Catalyst, drew global investors and reinforced Finland's leadership in space technology. ReOrbit followed with a record setting EUR 45 million Series A funding round, further strengthening Finland's position in the space tech sector. Nokia and NestAI entered into a strategic partnership aimed at advancing AI-powered defence solutions. As part of this collaboration, Nokia and Tesi committed a combined investment of EUR 100 million in NestAI, highlighting the growing integration of artificial intelligence within the defence sector.

In health tech, Oura secured EUR 777 million in one of Finland's largest-ever funding rounds, led by Fidelity, ICONIQ, Whale Rock, and Atreides. IQM Quantum Computers raised €275 million in a record Series B round, while Altor agreed to acquire a majority stake in Evac Group, highlighting private equity's growing interest in cleantech. Tietoevry sold its Tech Services business (later rebranded as Vivicta) to Agilitas for EUR 300 million, and fiber network build-out continued through Valoo's EUR 200 million financing round, expanding connectivity across Finland.

Industrial Sector

Industrial activity in Finland remained resilient in 2025, driven by portfolio reshaping and strategic repositioning. Several significant transactions illustrate this trend. Aspo completed the divestment of Leipurin, sharpening its focus on core businesses, while SRV sold its Infra operations as part of a broader effort to streamline and strengthen its balance sheet. Netel Group exited its Finnish operations, reflecting ongoing restructuring in telecom and network services across the Nordics. In transport and logistics, Stena Line acquired Wasaline, reinforcing connectivity between Finland and Sweden and supporting regional trade flows. The year also saw consolidation in financial services, with Sp-Henkivakuutus sold to Fennia, a transaction that underscores the appetite for scale and efficiency in insurance.

Energy and Renewables

Energy and natural resources remained central to Finland's M&A narrative, driven by the green transition and infrastructure modernization. The merger of Oomi and Lumme Energia created Finland's largest electricity retail and service provider, signaling a trend toward scale in energy distribution. Infrastructure investors were active, as seen in the City of Pori's EUR 360 million sale of a 49% stake in Pori Energia to Polhem Infra. Strategic players also pursued growth in renewables, with Fortum acquiring a wind and solar development portfolio from Enersense International for EUR 83 million and a wind energy portfolio from ABO Energy for EUR 40 million. These transactions reflect a market increasingly oriented toward sustainability and energy security.

Outlook for 2026: Resurgent dealmaking as uncertainty recedes

Deal drivers

As uncertainty gradually recedes, a more favourable financing backdrop could unlock pent‑up transactions. Private equity portfolios hold dozens of assets having achieved or on the verge of achieving exit readiness, and if IPO window remains open, dual-track processes are likely to increase. Demand for high-quality targets is expected to grow, reinforcing private equity's influential role in driving consolidation across several sectors.

Technology and energy themes

Investor appetite for technology, artificial intelligence, software, especially SaaS, and connectivity remains strong, enabling larger funding rounds and strategic acquisitions. The green transition and Europe's push for strategic autonomy will continue to channel investment into energy, infrastructure, data centres, and critical raw materials. Policy and tax decisions, such as those affecting mining and electricity, will increasingly shape investment strategies.

Artificial Intelligence resilience and integration

Buyers will continue to increasingly evaluate how artificial intelligence may disrupt target companies' business. The businesses that either integrate artificial intelligence effectively as part of their business model or show resilience to the impact of artificial intelligence will continue to draw increasing attention.

Geopolitics and Defence

Even if Russia's war of aggression in Ukraine ends, defence will remain a strategic priority. Finland's NATO membership and planned increases in defence spending are supporting investment interest in defence systems, electronics and space technologies. Regional cooperation is creating opportunities for private investors, although geopolitical escalation in Eastern Europe or the Arctic could dampen investor confidence.

Macroeconomic context

Short-term volatility persists and a decisive turnaround in Finland's overall economy is not yet visible. Macro trends are a backdrop rather than a direct determinant of deal flow. Purchasing power, employment, investment, and exports may improve moderately in 2026 and can aid sentiment, yet primary drivers remain strategic: private equity deployment, cross‑border capital flows, and sector‑specific growth opportunities.

Public M&A and IPO

Finland's IPO Market is Gaining Momentum

After a few years of slower IPO activity in Finland, driven by geopolitical tensions and subdued performance in both the Finnish economy and the Helsinki stock exchange, 2025 began positively with two successful IPOs in early April. GRK Infra, an infrastructure construction company, was listed on the main list of the Helsinki Stock Exchange, while Nokian Brewery, a brewery and soft drink producer, was listed on the Nasdaq First North Growth Market Finland. Additional IPOs planned for H1 2025 were postponed due to the significant market volatility triggered by US policy changes which coincided with the first trading days of GRK Infra and Nokian Brewery.

The IPO window reopened in September with Cityvarasto, a company providing self-storage units and ancillary services, announcing its IPO on the First North Growth Market. This was soon followed first by the IPO of Posti Group, a postal services and logistics company owned by the Finnish State, and then Framery, a manufacturer of soundproof smart pods and smart office solutions, which were both listed on the main list of the Helsinki Stock Exchange.

Altogether, five IPOs (three on the main list and two on the Nasdaq Helsinki First North Growth Market) were announced and successfully completed during 2025. In addition, the demerger of Lassila & Tikanoja resulted in the listing of a new spin-off company under the Lassila & Tikanoja name, while the existing listed entity was renamed Luotea. Two additional listings were completed via reverse takeovers, involving Sunborn International Holding merging with Rush Factory, and Summa Defence merging with Meriaura Group.

Overall, 2025 proved significantly more active for IPOs and listings compared to the previous three years, although early year expectations had anticipated even stronger uptick.

Year 2026 Expected to be Active for IPOs

Given the strong IPO activity at the end of the year 2025, the outlook for 2026 seems positive, with several companies preparing for IPOs and many likely targeting listings in H1 2026.

Assuming that there will be no major political or geopolitical disruptions, 2026 is likely to be the most active IPO year in Finland since 2021, provided that valuations remain reasonable and high-quality issuers continue to come to market. In addition to traditional IPOs, technical listings remain possible. Four listed companies have publicly announced strategic reviews that may lead to spin offs. These include the proposed separation of Fiskars' two business areas into independent legal entities (Fiskars and Vita), Talenom's review concerning the separation of the Easor software business into an independently listed company, UPM Kymmene's potential separation of its plywood business, and Aspo's potential demerger or divestment of ESL Shipping.

After a few years of stagnation, somewhat positive development in the consumers' purchasing power in Finland and the cautiously optimistic outlook in the Finnish economy support market conditions in 2026. Since many Finnish listed companies operate internationally or derive revenue from exports, moderate growth in Europe and globally contributes positively to these companies' outlook. Dual-track exit strategies gained traction in 2025, with several notable transactions demonstrating the viability of this approach. This trend may gain further traction among private equity sponsors if valuations on the Helsinki stock exchange continue to recover and investor sentiment remains strong. We may also continue to see further strategic review processes aiming to unlock hidden value of companies that are already listed.

Public M&A

Recent Activity in the Finnish Public M&A Market

Following an active period in the Finnish public M&A market driven by significant undervaluation of companies listed on the Helsinki Stock Exchange and the Nasdaq Helsinki First North Growth Market, activity slowed in 2025 as share prices generally corrected to more customary levels. Only two public tender offers were launched during the year. In August 2025, a consortium comprising CVC and Risto Siilasmaa announced a public tender offer for WithSecure, a cyber security company founded by Risto Siilasmaa. In October 2025, the largest shareholder of Citycon, G City, announced a mandatory public tender offer for Citycon after surpassing the 50% voting rights threshold.

The public tender offer over WithSecure continued the recent Finnish trend of consortium transactions in which an existing major shareholder collaborates with a private equity investor to accelerate growth. Unlike recent take-private transactions, the offer did not attract competing bids..

What to Expect for Public M&A During 2026

The share price performance on the Helsinki Stock Exchange and on the Nasdaq Helsinki First North Growth Market was strong during 2025 and overall, average company valuations increased. As a result, the overall market is no longer significantly undervalued, reducing the attractiveness of many companies as public tender offer targets.

Nevertheless, valuations remain moderate compared to several other markets, and certain undervalued or strategically important companies may continue to attract interest. Geopolitical considerations may also influence activity. For example, Leonardo's strategic investment in SSH Communications Security and the Finnish State's investment in Valmet Automotive illustrate continued interest in companies relevant to national security and Finland's NATO alignment.

Fundraising

Market Dynamics and Investor Appetite

The fundraising environment for private equity funds remained challenging in 2025. The market has become increasingly concentrated, with most capital allocated to established managers, while smaller or first-time teams face difficulties in gaining traction. Finnish and Nordic GPs are experiencing prolonged fundraising periods as many investors focus on re-ups with their most trusted managers. Others have had to extend timelines or rely on warehousing solutions to bridge the gap.

Investor appetite for private equity remains strong, but allocations are more selective. Finnish institutional investors continue to be the backbone of the domestic market, although they are carefully weighing fund terms, performance history, and sector focus. A notable trend across Europe has been the significant flow of capital into private credit strategies. In Finland, however, only a few domestic private credit funds exist, raising the question of whether more managers will seek to capture this demand. Similarly, the limited presence of Finnish secondary funds suggests potential for growth as GP-led continuation solutions gain traction globally.

Structures, Regulation and the 2026 Outlook

In terms of fund terms and structures, investors are negotiating harder on management fees and other fund-level costs, GP commitment levels, and the level of debt. While AIFMD II introduces additional reporting and operational requirements, it is unlikely to be a dealbreaker for closed-ended private equity funds. Managers are nonetheless preparing for implementation to ensure smooth compliance and avoid administrative bottlenecks.

At the same time, political initiatives are underway to introduce a new, non-transparent Finnish fund structure designed to appeal to international investors. If adopted, this could meaningfully improve Finland's global visibility and attract greater foreign capital.

Looking ahead, the outlook for 2026 is cautiously optimistic. Stabilising interest rates and a more favourable exit environment could support renewed fundraising momentum. For Finnish managers, differentiation will be key: clear sector strategies, competitive terms, and strong investor relationships are likely to determine who can attract capital in what remains a highly selective global market.

Debt Financing

Strong Appetite from Lenders Fuels Market Activity

The acquisition finance market has shifted significantly compared to 2022 and early 2023. Both private credit providers and banks are displaying strong appetite to finance acquisitions, creating a competitive environment for new-money deals and refinancing. This renewed lender enthusiasm is driving higher activity levels and providing sponsors with a broader range of financing options than seen in recent years, positioning the lending market well for increased private equity deal flow.

Beyond Price: The Growing Importance of Flexible Terms

While pricing remains a key consideration in structuring acquisition finance, it is no longer always the decisive factor. The flexibility offered by international private credit providers has influenced terms in the Nordic market, resulting in greater variation in leveraged finance structures. Depending on the deal structure and the specific needs of the transaction, sponsors are increasingly prioritising flexibility in financing terms alongside pricing. Features such as covenant-lite structures, flexible security take-ups, portability, delayed draw mechanics, accordion features, and tailored amortization schedules (or bullet-only financings) are often valued more highly than simply achieving the lowest possible margin. The ability to secure certainty of funds, efficient execution, and terms that align with the business plan has become a critical differentiator in competitive processes.

Evolving Debt Solutions: Interest in New Structures

Although NAV facilities, subscription credit lines, and collaborations between private credit and traditional bank lenders are not yet mainstream in the Finnish market, there is growing interest in these alternative debt solutions. Sponsors are actively exploring bespoke financing structures that can enhance execution certainty, liquidity, and portfolio-level flexibility. The adoption of these solutions will likely depend on the continued development of the market, the evolution of interest rates, and the increasing presence of international private credit providers in Finland.

Looking Ahead

The current environment offers significant opportunities for sponsors to optimise their capital structures and financing strategies. With lenders eager to deploy capital and a broader toolkit of debt solutions available, sponsors are well-positioned to negotiate terms that best support their investment objectives. As the market continues to evolve, the ability to balance price with flexibility and execution certainty will be key to successful acquisition financing in the year ahead.

Merger Control and FDI

Increased Activity and Future Prospects

The number of merger control filings in Finland has increased each year following the introduction of the current merger control thresholds, and this trend is expected to continue into 2026. The potential introduction of a call-in mechanism could reduce predictability and deal certainty for smaller acquisitions. Amendments to the Finnish FDI regime expected in 2026 would also increase the number of transactions and sectors subject to the mandatory FDI clearance.

Merger Control

Increased activity in 2025

The number of transactions subject to merger control in Finland continued to rise in 2025. A transaction requires prior clearance from the Finnish Competition and Consumer Authority (FCCA) when the combined Finnish turnover of the parties exceeds EUR 100 million, and the Finnish turnover of at least two parties exceeds EUR 10 million each.

In 2025, the FCCA gave clearance to 68 transactions, up from 58 in 2024. In 2025, all transactions were cleared unconditionally, 65 during Phase I review (maximum handling time 23 Business Days) and three during Phase II review. In addition, the FCCA initiated Phase II review in one case at the end of 2025.

Anticipating 2026 and beyond: The FCCA continues to advocate for call-in option

The FCCA has noted that serial acquisitions by private equity firms are part of a functioning economy. However, it views market concentration as problematic when merger control cannot be applied due to current turnover thresholds and the absence of a call-in mechanism.

The FCCA has consistently argued that it lacks sufficient tools to address harmful concentration and has advocated for the introduction of a call-in option similar to mechanisms used by other Nordic and EU authorities. Such a mechanism would allow the FCCA to review transactions falling below the turnover thresholds. Expanding the scope of merger control is expected to feature in the Finnish Government's future policy agenda.

FDI

Increased activity in 2025

The Finnish FDI regime includes both mandatory and voluntary screening mechanisms. Screening is mandatory for all foreign investments in defence sector companies and for non-EU or non-EFTA investors investing in security sector companies. Investments in other companies deemed critical to Finnish society fall under voluntary screening if the investor is non-EU or non-EFTA.

In recent years, annual FDI screening volumes have ranged between 30 and 40 cases. At this moment, there are no statistics available for the FDI screening in 2025 but the amount of FDI screenings increased significantly since 2024. This trend is likely to continue in 2026 due to growing interest in Finnish defence sector companies.

Anticipating 2026: Widening the scope of the FDI Act on the Horizon

In 2025, the Ministry of Economic Affairs and Employment (MEAE) published an assessment memorandum identifying fifteen development areas. The memorandum noted the need to expand FDI screening to include critical technologies such as artificial intelligence, semiconductors, and quantum technologies, as well as greenfield investments in critical infrastructure. Extending mandatory screening to new sectors including energy, transport, and cybersecurity is also being considered.

The MEAE has appointed a working group to consider national aspects as well as the forthcoming updates to the EU Foreign Direct Investment Screening Regulation. The working group is expected to prepare a draft government proposal by the end of its term on 31 March 2026, with the aim of submitting the government proposal to the Finnish Parliament in autumn 2026.

What's Ahead: Summary for 2026

Expanding mandatory screening and widening the scope of the FDI Act would significantly increase the number of transactions subject to the FDI screening. This may result in more extensive scrutiny and longer transaction timelines, as current screening typically takes 8 to 10 weeks. The potential introduction of a merger control call-in option may further affect predictability and deal certainty by allowing the FCCA to review transactions falling below turnover thresholds.

Finnish Tax Reforms Boosting Private Equity and Growth Investments

In April 2025, the Finnish government concluded its mid-term budget negotiations and introduced a series of tax reforms aimed at enhancing Finland's competitiveness and investment appeal. Many of these initiatives are relevant for the private equity sector, as they aim to draw international capital, reduce administrative burdens, and support the scaling of Finnish growth companies.

Reduced Corporate Income Tax rate

The corporate income tax rate will be reduced from 20% to 18% as of 2027.. At this level, Finland would rank among the most competitive jurisdictions in Europe, positioned below the EU average of approximately 21–22%, and notably lower than major economies such as Germany, France, and Italy. This reduction is expected to enhance Finland's attractiveness as an investment destination and create a more favourable environment for growth companies.

Extended loss carryforward period

The loss carry-forward period for corporate tax purposes will be extended from 10 to 25 years for losses confirmed from the 2026 tax year onwards. This extension is particularly relevant for private-equity backed companies and growth-stage businesses, which often incur significant losses in their early years before reaching profitability. The reform enables these companies to utilise accumulated losses over a longer horizon, improving the economics of long-term investment strategies and supporting the scaling of Finnish businesses.

Tax laws to recognise new fund structures

As noted under the heading "Fundraising " above, political initiatives are underway to introduce more internationally competitive fund structures in Finland.

From 2026 onwards, tax reporting obligations for foreign investors in Finnish limited partnership funds will be eased. Tax residency certificates will no longer be required, as the fund's declaration of the investor's residence in a tax treaty jurisdiction will be sufficient.

The government is also considering whether to make investments by non-profit entities in Finnish limited partnership funds tax exempt, as part of the broader fund taxation reforms currently underway.

Share Exchange and Corporate Restructurings Reform

The government will conduct a comprehensive review of the tax rules applicable to corporate restructuring to ensure fairness and alignment with international standards.

Under current Finnish tax law, contingent purchase price components (such as earn-outs) and related transfer taxes may trigger immediate tax consequences at the time of the transaction, even though the actual payment remains uncertain. The proposed reform would defer taxation until the contingent claim is realised, meaning tax would only become payable when the earn-out or similar payment actualizes . This change addresses previous distortions in tax treatment and aligns timing of taxation with the economic reality of the transaction.

The government has proposed significant changes to the taxation of share-for-share transactions. The reform aims to limit related-party tax planning while preserving the availability of tax neutral treatment for genuine business restructurings. By distinguishing between related-party and arm's-length transactions, the proposal seeks to maintain flexibility for growth-oriented transactions while enhancing the integrity of Finnish tax rules and improving their alignment with international standards. The key changes include:

• Expanding tax-neutral share exchanges to non-EEA countries, such as the United States, provided certain conditions are met (including the existence of an applicable tax treaty, a sufficiently high corporate tax rate, and a comparable legal form). This expansion is expected to increase cross-border flexibility and support international growth strategies for Finnish companies.
• Raising the allowable cash component in share exchanges to 50% of the nominal value of the shares given as consideration, or in the absence of nominal value, the corresponding portion of paid equity (previously 10% of the nominal value or of the paid in share capital), thereby increasing flexibility in structuring cross-border transactions.
• Limiting tax benefits in related-party share exchanges by requiring the acquiring company to use the original acquisition cost rather than fair market value for tax purposes, thereby preventing artificial increases in net asset value and dividend capacity.vernment will conduct a comprehensive review of the tax rules applicable to corporate restructuring to ensure fairness and alignment with international standards.

Under current Finnish tax law, contingent purchase price components (such as earn-outs) and related transfer taxes may trigger immediate tax consequences at the time of the transaction, even though the actual payment remains uncertain. The proposed reform would defer taxation until the contingent claim is realised, meaning tax would only become payable when the earn-out or similar payment actualizes . This change addresses previous distortions in tax treatment and aligns timing of taxation with the economic reality of the transaction.

The government has proposed significant changes to the taxation of share-for-share transactions. The reform aims to limit related-party tax planning while preserving the availability of tax neutral treatment for genuine business restructurings. By distinguishing between related-party and arm's-length transactions, the proposal seeks to maintain flexibility for growth-oriented transactions while enhancing the integrity of Finnish tax rules and improving their alignment with international standards. The key changes include:

• Expanding tax-neutral share exchanges to non-EEA countries, such as the United States, provided certain conditions are met (including the existence of an applicable tax treaty, a sufficiently high corporate tax rate, and a comparable legal form). This expansion is expected to increase cross-border flexibility and support international growth strategies for Finnish companies.
• Raising the allowable cash component in share exchanges to 50% of the nominal value of the shares given as consideration, or in the absence of nominal value, the corresponding portion of paid equity (previously 10% of the nominal value or of the paid in share capital), thereby increasing flexibility in structuring cross-border transactions.
• Limiting tax benefits in related-party share exchanges by requiring the acquiring company to use the original acquisition cost rather than fair market value for tax purposes, thereby preventing artificial increases in net asset value and dividend capacity.

Attracting talent with personal tax benefits

To strengthen Finland's appeal to international talent and key employees, the 2025 tax reforms introduced a significant reduction in the flat tax rate applicable to qualifying foreign experts, from 32% to 25%, making relocation more financially attractive. In addition, employer-covered relocation costs, such as visa fees and vaccinations, are now tax-exempt, reducing the administrative and financial burden on incoming professionals. Looking ahead, the government has also announced plans to improve the tax treatment of equity incentives during 2026, which is expected to enhance the competitiveness of Finnish companies in offering stock-based compensation. Together, these measures position Finland as a more compelling destination for globally mobile talent.

VAT Deductions for Private Equity Under Scrutiny

VAT deductions claimed by private equity investors have come under increased scrutiny following a recent ruling by the Supreme Administrative Court. In particular, the deductibility of VAT on transaction-related advisory costs, such as due diligence fees, has been subject to closer examination. Fund managers should carefully assess their VAT positions in connection with M&A activities and ensure that deduction practices align with current interpretations. For further analysis, see our separate post on this topic (available in Finnish).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.