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Active owners take responsibility, exercise their influence and create added value by contributing their extensive resources. Active ownership is the opposite of passive investing, where shareholders have no ties to the company and no role in value creation.
Active ownership |
Passive ownership |
|---|---|
| Strategic and active long-term commitment that creates added value. | The owner is only concerned with profit and has no role in value creation. |
| Aims at a shared success. | Performance is measured against a reference index. |
| The owner’s reputation is at stake. | The owner has no ties to the company. |
| Ownership is not easily converted into cash. A sale could affect the company. | Often a more liquid form of ownership. A sale has no effect on the company. |
| In difficult times, the owner actively takes responsibility for saving the company. The owner ultimately answers to stakeholders for the success of the company. | Difficulties often drive the owners away. The owner has no responsibility towards stakeholders. |
Profitability and social impact
Sitra is a business developer and facilitator of social change. It actively participates in developing the companies it invests in, helping them increase their value. According to its mission statement, Sitra is building a successful Finland for tomorrow. Our capital investments are never about financial profit alone; we also aim to improve and benefit society. These two goals are not mutually exclusive, quite the contrary – they support one another. As an active owner, Sitra seeks to combine these two aspects as effectively as possible.
Shared goals create a solid foundation for success
At the beginning of an investment process, Sitra agrees on shared goals with the entrepreneurs and other investors. The purpose is to increase the value of the company. We also discuss how and when the capital investor will eventually exit the company. These negotiations result in a clear ownership strategy, which is communicated to all parties. The ownership strategy is always tied to the company’s strategy, which ensures that the owners and the management share a common vision of the future.
Sitra contributes as an active board member
Sitra appoints a team of specialists for each company in which it invests. By being represented on the board, Sitra actively contributes to the company and its development, together with the management and other owners. Shared goals are a prerequisite for progress.
Sitra is an active owner
Sitra has extensive experience in capital investments, and it makes long-term commitments. Its strengths as an owner also include neutrality. Sitra participates actively and increases the value of the company by contributing resources, in terms of both capital and competence. It creates added value through business development, new contacts and networks, strategic expertise and board representation. Sitra makes its experience, capabilities and extensive networks in Finland and abroad available to its portfolio of companies.