Target Company Overview

Comadev, a rapidly growing company based in Rovaniemi, specializes in the production of rock samples from both surface and subsurface environments using advanced drilling technologies. Their innovative diamond drilling methods yield core samples that are essential for geological analysis, the search for valuable minerals, and geotechnical studies. Comadev has a workforce of approximately 50 employees at its headquarters and assembly plant in Rovaniemi, as well as client sites across the Nordic countries. The company experienced impressive growth, achieving a revenue of €12.9 million in 2024, which reflects over 100% annual growth from 2021 to 2024.

Comadev serves a variety of prominent clients, including major publicly listed companies such as the Finnish Outokumpu and Canadian First Nordic Metals. Its expertise in resource extraction positions the company well within the mining sector, specifically in relation to the critical raw materials required for Europe's climate goals.

Industry Overview in Finland

The mining industry in Finland and the Nordic region is poised for significant growth as Europe aims to meet its climate objectives, which necessitate a reliable supply of critical raw materials. The European Union currently relies heavily on imports for essential materials used in green technologies. For example, more than 60% of cobalt used in batteries is sourced from the Democratic Republic of the Congo, and a staggering 97% of EU magnesium is imported from China. In response, the EU passed legislation focusing on critical raw materials, aiming to bolster the region's independence and the reliability of supply chains.

This creates substantial growth opportunities for the Nordic mining sector, given that the region is rich in critical materials such as nickel, cobalt, and graphite, alongside being recognized for its stable and environmentally conscious practices. Comadev stands out as a key player capable of providing both expertise and equipment to identify new mining sites and develop existing ones, thus contributing to the EU's objectives of self-sufficiency.

Aside from traditional mining, there is increased focus on geothermal drilling solutions, as the demand for sustainable energy rises. This progressive transition provides Comadev with opportunities to expand its services strategically within the growing green and energy sectors.

Rationale Behind the Deal

Evli Private Capital Fund I aims to make impactful minority investments in small to medium-sized growth companies focused on energy transitions, resource efficiency, and the circular economy. The latest investment in Comadev is expected to accelerate the company’s growth in both domestic and international markets. This investment includes new capital as well as acquisitions of existing shares, with options for future investments. Following this funding, Evli Private Capital becomes a significant minority shareholder in Comadev.

This partnership will not only enhance Comadev's operational capacity but also strengthen Evli's commitment to promoting advancements in the energy sector and digital infrastructure in Europe. With the firm’s support, Comadev plans to broaden its drilling capabilities to include geothermal drilling services, which complements its existing offerings and captures a growing segment within the renewable energy market.

Investor Information

Evli Private Capital is an investment fund focused on identifying and nurturing small to medium-sized companies that demonstrate strong growth potential, particularly those driving forward the green transition. Through this recent investment, Evli aims to support companies that play a pivotal role in the energy sector's transformation and resource sustainability efforts.

Mikko Heikkilä, a partner at Evli Private Capital, expressed enthusiasm about the investment, highlighting Comadev's exceptional competence in drilling operations. He noted that this investment aligns with the fund's strategy to advance Europe's energy transition and support digital infrastructure improvements.

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Evli Private Capital’s investment in Comadev could be seen as a strategic and timely move, given the increasing demand for critical raw materials in Europe. Comadev's position in the Nordic mining sector, coupled with its expertise in innovative drilling technologies, makes it a compelling target for investment. The projected growth of the mining industry in Finland and the emphasis on resource efficiency and sustainability align well with current market trends.

Furthermore, integrating geothermal drilling into their service portfolio presents an opportunity for Comadev to differentiate itself and tap into new revenue streams. The collaboration between Evli and Comadev might also facilitate access to broader networks and additional resources, further enhancing growth potential.

Overall, this investment bears the hallmark of a well-thought-out strategy aimed at capitalizing on the burgeoning demand for sustainable energy solutions and critical resources, thereby positioning both Evli and Comadev favorably in the evolving market landscape.

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