CapMan as an investment

CapMan is one of the world’s few listed private equity fund managers. By investing in CapMan shares, investors have the opportunity to benefit from value created across a portfolio of Nordic and Russian companies and real estate. CapMan’s B shares have been listed on the Helsinki Stock Exchange since 2001.

Three pillars of the business

The capital in private equity funds managed by CapMan is raised from institutional investors. The investment teams invest the capital in Nordic or Russian unlisted companies or Nordic real estate. Successful fundraising requires performance, i.e. that the returns paid by CapMan’s funds meet the target levels set by the institutional investors investing in them. The long-term success of CapMan’s business depends therefore on the success of the investments made by its funds, in practice on how well it identifies investment opportunities, develops the value of portfolio companies and real estate, and realises value through well-timed and well-managed exits. The management fees received from fund investors and carried interest income derived from good returns provide the most significant contribution to CapMan’s revenue stream.


Value-added private equity services constitute the second pillar of the business. These include the indirect purchasing service of CapMan’s purchasing scheme CaPS and international fundraising and advisory services. These activities are expected to grow CapMan’s fee income in the long run.


The third pillar is the return from investments in CapMan’s own funds and in Norvestia. CapMan owns 28.7% of Norvestia.   

Long-term business

CapMan funds typically have a 10-year life cycle and most investments are held for four to six years. Risks are spread over a number of individual investments, none of which typically account for more than 15% of a fund’s total capital. CapMan aims to invest in portfolio companies and real estate on a steady basis, irrespective of fluctuations in the economic cycle, and make the most of price differentials between the countries in the Nordic region by leveraging the region’s extensive deal flow and buying companies in countries that offer attractive purchase prices. CapMan aims to exit its investments at the optimum time.

The long-term nature of CapMan’s funds and investment activities has an inevitable impact on its financial performance, which should always be analysed over a longer time span than the quarterly cycle. CapMan’s main sources of income are described in more detail here.

Financial targets

CapMan Plc announced the following financial targets in March 2015:




Performance in 2015


Return on equity of over 20% p.a. over the cycles

9.3% p.a.

Capital structure

Equity ratio of 45-60%


Dividend policy

Payout ratio of at
least 60% of earnings per share

The Board of Directors' proposal for 2015: €0.07 per share


CapMan has not set a separate growth target. CapMan believes that growth in the private equity investment sector will continue. Our target is to utilise growth opportunities in areas where we are able to add the best value to our customers. Growing fees deriving from growth in the service business as well as from successful fundraising create a good foundation for sustainable profit and EPS growth.





Why invest in CapMan?

  • Return potential of unlisted companies:
    • Opportunity to access the value generated by unlisted Nordic and Russian companies and Nordic real estate.
  • Attractive earnings model:
    • Highly predictable fee income.
    • Growth potential in the service business 
    • Funds in carry have earnings potential whenever a portfolio company or real estate is exited. 
    • Significant upside from carried interest and own fund investments.
  • Diversification benefits: Large number of funds under management and multiple individual investments spread the risk of the investment.
  • Dividend policy: CapMan's targeted payout ratio is at least 60% of its earnings per share.
  • Alignment of interests: Management and personnel own approx. 25% of CapMan.