Information on the Target

Calefa is a Finnish growth company focused on the recovery and recycling of waste heat and environmental energy through industrial-scale heat pump technology. The company has established itself as a leader in this sector, creating comprehensive energy solutions for industries, power generation facilities, and large properties based on its advanced heat pump technology. Over the past decade, Calefa has heavily invested in researching and developing heat pump technologies as well as constructing modular heat pump systems.

Currently employing approximately 40 staff at its headquarters in Hollola and its production facility in Ikaalinen, Calefa has experienced rapid growth, averaging a remarkable 30% annual increase. For the fiscal year 2025, the company anticipates exceeding €15 million in revenue, driven largely by its innovations such as the patented AmbiHeat® heat pump systems, which enable clients to harness waste heat and environmental energy for a fully emission-free heating and cooling solution.

Industry Overview in Finland

The energy recycling industry in Finland has emerged as a dynamic sector, attracting significant attention as companies seek more efficient ways to mitigate carbon emissions while also cutting operational costs. The growing emphasis on sustainability and the transition towards a circular economy have led to increased investment in technologies that optimize energy use, particularly as Finland aims to reach ambitious environmental goals.

Finnish industries, including major players in manufacturing and energy, have increasingly adopted energy recycling technologies. This trend is reinforced by supportive government policies and funding initiatives aimed at fostering innovation in sustainable energy practices. The technologies developed by firms like Calefa are at the forefront of this transition, providing effective means to utilize wasted industrial heat and renewable energy sources.

With a strong base in Finland, companies are now beginning to explore international markets more aggressively. The key advantages provided by efficient energy solutions are driving these companies forward, enhancing competitiveness while fulfilling regulatory responsibilities related to emissions reductions. Calefa's ongoing projects illustrate the significant savings on energy costs and reductions in carbon footprints achieved through such technological innovations.

As we move towards a greener future, the energy recycling industry in Finland is well-positioned for further growth. With various industries, including pharmaceuticals and manufacturing, seeking improved energy solutions, the demand for Calefa’s products and services is likely to burgeon, bolstered by their proven track record and commitment to sustainability.

The Rationale Behind the Deal

Evli Private Capital's investment of €7 million in Calefa aims to support the company’s strategic growth objectives while enhancing its capacity to capture new market opportunities both domestically and internationally. This collaboration is geared towards propelling Calefa’s mission to accelerate the transition to sustainable energy solutions, while optimizing the use of waste heat and environmental energy.

The investment comprises both new capital and the purchase of existing shares, further solidifying Evli's position as a significant minority stakeholder in the business. An option for additional investment underscores Evli’s commitment to being an active partner in Calefa's expansion journey.

Information about the Investor

Evli Private Capital is part of the broader Evli Group, focusing on private equity investments aimed at driving positive environmental impact. The firm specializes in minority stakes in small to medium-sized growth companies operating within the energy sector's essential transition towards resource efficiency and circular economy practices.

By leveraging its resources and expertise, Evli Private Capital seeks to facilitate the growth trajectories of its portfolio companies. The commitment to sustainable investments is a cornerstone of Evli’s strategy, providing valuable insight and support to companies like Calefa that are actively contributing to global energy transformations.

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Investing in Calefa presents a promising opportunity for Evli Private Capital, as the company operates in a rapidly growing sector that aligns with global sustainability trends. The strategic integration of innovative heat pump solutions positions Calefa to meet increasing demand from industrial clients looking to optimize their energy usage and reduce carbon emissions.

The partnership with Evli could provide Calefa the necessary resources to enhance its R&D efforts and expand its market reach, therefore increasing the potential for substantial returns. Given that the company has already demonstrated robust growth and a strong market presence, continued investment is likely to yield positive outcomes.

As the demand for sustainable energy solutions continues to rise, Calefa is well-placed to capitalize on new business opportunities, both in Finland and abroad. Collaborating with an investment partner like Evli will enhance its capabilities and potentially accelerate its trajectory towards achieving the ambitious revenue target of €50 million.

Overall, the investment is indicative of a broader trend towards sustainability in business, and it showcases a strategic alignment between a growth-focused technology company and an investor committed to environmental stewardship, making it a potentially wise investment in the current market climate.

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