4 February 2016:
Heikki Westerlund, CEO, comments on the events of 2015 and CapMan’s future outlook:
“Our earnings per share for 2015 improved in line with our guidance. The baseline profit of our overall fee income (management fees and other fees) has developed in the right direction. The earnings impact of Norvestia was good and attributable especially to the fair value development of growth equity. Our carried interest income was below the previous year’s level and our target, but we expect to realise the potential from the funds in the future. The fair value development of our own funds improved from last year, but did not yet meet our target level.
Services became an increasingly important part of our business during the year. In the beginning of 2016, CapMan launched Scala Fund Advisory with its roots in the extensive international fundraising experience of the team. Scala offers fund advisory services to private equity fund managers and institutional investors and has already several external mandates. We have also signed the first contracts for private equity fund management. Our service offering includes e.g. reporting, valuation and fund compliance. We believe that services have significant long term growth potential and play an integral role in smoothing out the fluctuation of our earnings.
The development of our funds’ portfolio companies and real estate was generally positive in 2015, but the decrease in oil prices and the development of the Norwegian krona and the rouble had a negative impact on the valuation of some portfolio companies. In addition, the weakness of the Finnish economy has slowed down the development of some investments. The value development of the CapMan Nordic Real Estate fund was particularly favourable and strengthens our belief in the growth potential of real estate as an investment area. The fair value development of investments into CapMan’s own funds fell below target in 2015 partially due to the depreciation in the CapMan Mezzanine IV fund.
Our focus areas for 2016 are the fair value development of our own fund portfolio, the utilisation of growth opportunities by for example raising new capital for real estate and credit funds, the growth of our service business and the acceleration of growth investments through our ownership in Norvestia. We proceed on our current strategic path with an objective to improve our earnings per share.”
To read the full Financial Statetements Bulletin for 2015, please click here.
To read CapMan Group’s Interim Reports and Financial Statement Bulletins, please click below: