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Stock exchange release - 4 November 2005

CapMan Buyout VIII fund holds first closing at EUR 312 million

CapMan Plc has established its eighth buyout fund. The first closing of CapMan Buyout VIII was held today at EUR 312 million. The target for the fund is EUR 375 million. CapMan Buyout VIII will invest in middle market buyout transactions in the Nordic countries. The establishment of the fund does not have a substantial impact on CapMan’s result for 2005.

A total of 19 institutional investors have joined CapMan Buyout VIII fund at the first closing. CapMan’s own commitment into the fund is 10% of the total commitments i.e. approx. EUR 31 million.

 

”We are very pleased that a wide group of key institutions in all Nordic countries has once again decided to participate in our fund. To our delight the group also includes new investors from Western Europe and the United States,” says Partner Jerome Bouix, responsible for fundraising and investor relations at CapMan.

 

The new fund raises the cumulative capital under management in CapMan funds to approx. EUR 2.2 billion. Of this, EUR 1.7 billion is allocated for direct investments in portfolio companies in the Nordic countries and the remainder for real estate investments in Finland. The management fee of CapMan Buyout VIII fund is in accordance with common practice in the industry. In connection with the establishment of the fund, the Board of Directors of CapMan Plc decided that 30% of CapMan Buyout VIII fund’s possible carried interest will be distributed to the members of the investment team responsible for the fund’s investment activities during its life cycle. A new fund typically starts to generate carried interest after 5 to 7 years, provided that the investors have regained their investment and an 8% preferred annual return.

 

 

For further information please contact:

Heikki Westerlund, CEO, tel. +358 9 6155 8304 or +358 50 559 6580

Jerome Bouix, Partner, Fundraising & IR, tel. +358 9 6155 8358 or +358 40 820 8541

 

 

CapMan
CapMan is one of the leading private equity investors in the Nordic countries and specialises in middle market buyouts in various industry sectors, technology investments in the IT and communications sectors and investments in life science companies. In addition, CapMan manages/advises private equity real estate funds. The CapMan team comprises around 90 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan manages/advises Nordic funds with approx. EUR 2.2 billion in total capital. To date, the funds managed by CapMan have invested in 147 companies in the Nordic countries and exited from 76 companies. CapMan’s latest buyout investments have been made in Swedish travel retail company Inflight Service AB, Norwegian ICT services provider InfoCare AS and Finnish supplier of mechanical power transmission equipment Moventas Oy (formerly Metso Drives Oy) by the CapMan Equity VII fund, which was established in 2002. The portfolio of CapMan’s first private equity real estate fund consists of 17 commercial properties in the Helsinki metropolitan area. CapMan Plc is listed on the Main List of the Helsinki Stock Exchange. www.capman.com