CapMan establishes a Public Market fund that will utilise private equity style value creation methods in public markets

CapMan Plc Stock Exchange Release 11 July 2008 2.05 p.m.

This stock exchange release is issued pursuant to the requirements of Finnish securities laws and regulations. This notice is not an offer of securities for sale in the United States or to a US person. The securities described in this notice have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an exemption from the registration requirements. The terms "United States" and "US person" each have the meanings set forth in Regulation S promulgated under the United States Securities Act of 1933.
CapMan Plc has established a new equity fund, CapMan Public Market, investing in Nordic public companies. The fund's first closing was held today at EUR 90 million in investment commitments, of which CapMan Plc's share is EUR 15 million. The establishment of the fund is the start of CapMan's sixth investment area, CapMan Public Market, which will be headed by Jukka Ruuska, LL.M., MBA. The establishment of the fund will not have a substantial impact on CapMan Plc's result for 2008.
The fund will invest in Nordic public companies that have a market capitalisation of EUR 100-1,000 million, i.e. mid cap companies. The fund's fundraising continues.
"We have taken this year two major steps forward in CapMan's strategy of exploiting growth opportunities in the alternative asset class by expanding our operations to Russia and establishing the Public Market Fund. The cornerstone of our growth has been the last nearly 20 years our active ownership methodology in developing portfolio companies," says CapMan Plc's CEO Heikki Westerlund.
"Now that the fund has been established, we're very keen to start investment operations. Our aim is to invest in 4 to 6 companies which have significant value creation potential, and to develop the companies by utilising private equity style active ownership, such as proactive board work and the opportunity of developing a company following a 3-5 year value creation programme. Our investment strategy is friendly. To successfully develop portfolio companies, it is central that we find a shared vision with other owners," says Jukka Ruuska, Head of the CapMan Public Market team.
CapMan Plc's own commitment to the fund is EUR 15 million. The management fee paid by the fund to CapMan is based on the original fund size during the fund's investment period and thereafter on the remaining portfolio at acquisition cost. The management fee level corresponds to that CapMan receives from other funds investing in portfolio companies. The fund will start generating carried interest income after it has returned the original investment to investors in addition to a preferential return linked to market return. CapMan Plc's share of any carried interest will be 50% and the CapMan Public Market investment team's share will be 50%.
For further information, please contact:
Heikki Westerlund, CEO, CapMan Plc, tel. +358 207 207 504 or +358 50 559 6580
Jukka Ruuska, Head of CapMan Public Market, tel. +358 50 1732

Mari Reponen
Communications Director
Investor Services
Helsinki Stock Exchange
Main media
CapMan is one of the leading alternative asset managers in the Nordic countries and manages Nordic funds with approximately EUR 3.2 billion in total capital. CapMan has six investment areas (CapMan Buyout, CapMan Technology, CapMan Life Science, CapMan Russia, CapMan Public Market and CapMan Real Estate), and each of them has a dedicated team and funds. Altogether CapMan employs 130 people in Helsinki, Stockholm, Copenhagen, Oslo and Moscow. CapMan was established in 1989 and its B shares have been listed on the Helsinki Stock Exchange since 2001.
Share on LinkedIn Share on Twitter