5 November 2015:
Heikki Westerlund, CEO, comments on the events of January–September 2015 and CapMan’s prospects for the rest of the year:
“Our turnover increased by seven per cent compared to last year and our profit doubled. Our operative cash flow was similarly at a good level. The negative stock market development in the third quarter was mainly reflected in the valuation of our associated company Norvestia and to some extent also in the fair value development of our own fund investments. The decrease in net asset value was moderate compared to the general development in the Nordic stock markets.
Norvestia’s Board of Directors approved the new investment strategy as a result of the company’s strategy process. Over the coming years, the company’s objective is to invest MEUR 100 in growth equity, which includes direct minority investments, activist stakes in growth-oriented public companies and Venture and Buyout funds. The return target of growth equity portfolio is at least 15% p.a.
The development of our service business and new investment products, e.g. mandates tailored according to client specifications provide an additional boost to our growth. We have also initiated a program with the objective to save approximately one million euros in expenses by for example renewing lease agreements for our offices.
We received carried interest income from the repayment of a high yield vendor loan provided in conjunction with the exit from Inflight Service. Moreover, the completion of the exit from Cederroth resulted in significant cash flow to both fund investors and CapMan. Funds at the end of their life cycle still hold companies with notable return potential, of which the recent exits from Swereco by the CapMan Life Science IV fund and ÅF AB by the CapMan Public Market fund are good examples.”
To read the full Interim Report for 1 January - 30 September 2015, please click here.
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