Investment firm CapMan Oyj is considering the sale of its 60% stake in Valokuitunen Oy, a fiber joint venture with Telia Co.

The potential divestment could value Valokuitunen at about €500 million (US$582 million) and is in the early stages.

A formal sale process may begin in September 2025, though discussions are still in early stages and confidential.

Founded in 2020, Valokuitunen runs an open fiber network serving around 400,000 homes in Finland, with CapMan holding the majority and Nordic telecom operator Telia owning 40%.

CapMan, active since 1989, has raised over €8 billion (US$9.3 billion) and focuses on investments in real estate, infrastructure, and natural capital.

CapMan has not commented on the potential sale, and Valokuitunen has not responded to requests for comment.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Private equity exit timing aligns with established value creation patterns

CapMan’s potential exit from Valokuitunen follows a consistent pattern seen in their previous investments.

The firm typically grows assets for 3-5 years before seeking exits, as demonstrated when they divested Oral Hammaslääkärit in 2017 after just three years of ownership, during which they increased EBITDA by 19% annually1.

The timing of this potential fiber network sale, coming approximately 5 years after Valokuitunen’s 2020 founding, aligns with private equity’s standard investment horizon for infrastructure assets.

This suggests CapMan likely believes they’ve maximized their value creation potential for Valokuitunen, having established the network infrastructure and connected 400,000 households across Finland.

The €500 million valuation target reflects substantial value creation from their initial investment, representing the premium investors place on established digital infrastructure with stable recurring revenue.

2️⃣ Digital infrastructure attractiveness grows amid Finland’s data center boom

The potential high valuation of Valokuitunen reflects the strategic importance of fiber networks in supporting Finland’s data center growth.