Shares and Shareholders

Investment thesis

CapMan’s share enables any investor to tap into the potential of unlisted companies and real estate. CapMan’s objective is to return at least 60% of earnings per share as dividends.

Tap into the potential of unlisted companies and real estate

CapMan’s share is similar to a private equity fund of fund, spreading investments over several private equity investment strategies, a large number of funds and multiple individual investments. Investments are diversified between geographies and industries, providing additional diversification benefits. Shareholders also benefit from carried interest income. Carried interest income is generally generated at the end of a fund’s life cycle as the fund transfers to carry. Due to the nature of the business, CapMan’s financial performance needs to be analysed over a longer time span. The life cycle of a private equity fund is typically 10 years and most investments are held for 4-6 years.

Why invest in CapMan?

  • Opportunity to access the value generated by unlisted Nordic and Russian companies and Nordic real estate.
  • Highly predictable base income from management fees and growth potential of the service business.
  • Carried interest income increases the distributable capital and funds in carry have earnings potential whenever a portfolio company or real estate is exited.
  • Significant upside from carried interest and own fund investments.
  • Significant own investment capacity allocated to the private equity investment class (including funds and direct investments).
  • CapMan’s objective is to distribute at least 60% of its earnings per share as dividends.
  • Management and personnel own approx. 25% of CapMan aligning interests with other shareholders.

Earnings/share and dividend/share,€

Financial objectives

CapMan’s business is based on the growth of the underlying private equity industry. Our objective is to utilise growth in the areas where we can add the most value to our clients. The growing service business and successful fundraising that grow the fee potential provide a solid basis for sustainable growth of operating income and earnings per share over the cycles.

Profitability

Objective: ROE of over 20% p.a. over the cycles

Performance in 2015: ROE 9.3%

Capital structure

Objective: Equity ratio of 45-60%

Performance in 2015: 43.7%

Dividend policy

Objective: Payout ratio of at least 60% of EPS

Performance in 2015: €0.07 per share