8 May 2014:
Heikki Westerlund, CEO and senior partner, comments on the events during the review period and CapMan’s prospects:
“Our development was positive in the early part of 2014. Slower than anticipated growth in Europe, however, is still reflected as caution in many sectors. There are also clear differences in the market mood between the Nordic countries, as Finland continues to develop at a slower pace than Sweden and Norway. The crisis in the Ukraine has slowed down some projects in our Russia investment area. However, interesting opportunities are created by decreasing competition. Investors’ interest in real estate and debt investments generating a steady cash flow based return has increased.
We continued active value creation work in our portfolio companies. We successfully achieved our goal of developing the Norwegian-based Espira to become a market leader in its sector. Our exit from the company, when complete, will bring a good cash flow to the fund investors, including CapMan itself. Action programmes in the more challenging portfolio companies have slowly started to bear fruit, and we are expecting a clear improvement in their performance in the next 12 months.
There are currently many interesting investment opportunities in the market that we have already been monitoring for a long time, and our funds have been active on the investment front in the beginning of the year. Our latest Buyout investment Harvia is a good example of cooperation between family-owned companies and private equity investors that generates growth opportunities. Our Nordic Real Estate fund has also continued investment activities in line with its strategy, especially in Sweden and Denmark.
Our strong financial position creates a good basis for strategy implementation.”
To read the full January - March 2014 Interim Report, please click here.
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