CapMan Infra invests in the leading Norwegian ferry and express boat operator Norled in the fund’s first transaction

May 20, 2019

CapMan Infra press release
20 May 2019 at 09.00 a.m. CEST

CapMan Infra invests in the leading Norwegian ferry and express boat operator Norled in the fund’s first transaction

A consortium of CapMan Infra and CBRE Caledon Capital Management have entered into an agreement to acquire Norled, a leading ferry and express boat service provider with operations across Norway. The investment is the first for the CapMan Nordic Infrastructure I fund and CapMan Infra’s first transportation infrastructure investment.

CapMan Infra and CBRE Caledon are each acquiring a 50% equity stake in the company from Det Stavangerske Dampskibsselskab (DSD).

Founded in 1855, Norled employs over 1,000 people and is a leader in innovative and environmentally friendly transportation services, recently winning several contracts to operate ferry and express boat routes with zero-emission electric vessels. Norled is also building the world’s first hydrogen ferry. The Norwegian ferry sector represents an attractive investment prospect with compelling infrastructure characteristics and an opportunity to invest in environmental improvements in the company’s fleet. Norled is one of Norway’s largest ferry and express boat transportation companies with a fleet of 59 ferries and 28 express boats that transport more than 17 million passengers and 9 million cars annually, backed by long-term contracts with public transport authorities.

“The Norwegian ferry industry is a critical part of the country’s transportation infrastructure. We believe that the green shift in the industry further highlights sea transportation as a sustainable solution, supporting both the connectivity within and between regions for daily commuters and leisure travellers, while creating jobs and economic growth. CBRE Caledon has proven to be a great partner to CapMan in this investment given their experience in the ferry sector, competent team and deep understanding in infrastructure investing. We are impressed with Norled’s management and employees and are looking forward to continuing the successful journey together to further improve operations for the benefit of the company’s customers, employees and communities,” says Ville Poukka, Managing Partner at CapMan Infra.

“Norled represents an attractive investment opportunity given the availability-based, index-linked nature of cash flows, the company’s market-leading position, and the increasingly green credentials of the Norwegian ferry industry,” says Dr Andreas Köttering, Partner at CBRE Caledon. “Furthermore, we have been very pleased with the collaboration with CapMan. Their local insight and Nordic experience combined with our experience in the ferries sector well positions our consortium to continue developing Norled.”

“I am pleased that CapMan Infra and CBRE Caledon, solid and professional owners, will be responsible for the further development of Norled in line with the company’s business and investment plans. This transaction comes at a time when the Norwegian ferry and express boat industries are undertaking major investments in new, environmentally friendly technologies. Norled’s dedicated employees have for many years proven their capacity to remain at the forefront of the green shift within the sector, and I’m sure that with the new owners, Norled will continue its positive development and will prosper in the years to come,” says Yuhong Hermansen, majority owner and chairwoman of DSD.

CapMan Infra’s investment focus is core and core+ infrastructure assets with limited market or contractual risks in the energy, transportation and telecom sectors. CapMan Infra held the first close on its midcap Nordic infrastructure fund in October 2018. The CapMan Infra team comprises 7 investment professionals and operates from Helsinki and Stockholm with a total of 70 years of sector experience. The team has previously completed investments on a mandate basis in Nordic infrastructure opportunities.

Nordea Bank Abp, filial i Norge, C&IB and RBC Capital Markets acted as the consortium’s joint financial advisers in the transaction. The transaction is subject to regulatory approvals and is expected to close by end of June 2019.

For further information, please contact:
Torborg Chetkovich, Partner, CapMan Infra, tel: +46 73 8020205

CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With over €3 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, fundraising advisory, and analysis, reporting and wealth management services. Altogether, CapMan employs 140 people in Helsinki, Stockholm, Copenhagen, London, Moscow and Luxembourg. www.capman.com

CBRE Caledon Capital Management Inc. is a leading infrastructure and private equity solutions provider. The company creates long-term value for clients by accessing and managing high quality investment opportunities and building comprehensive infrastructure and private equity portfolios. The dedicated team of 45 professionals represents over US$9.0 billion on behalf of institutional investors globally.

CBRE Caledon is a separate business unit within CBRE Global Investors, a global real asset investment management firm with US$107.2 billion in assets under management as of March 31, 2019. CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2018 revenue). www.cbrecaledon.com