We have achieved several significant strategic successes during the year. The acquisition of Dasos Capital was completed in March 2024, establishing a new investment area CapMan Natural Capital. The acquisition supports our strategy both from growth and sustainability perspectives, increasing our assets under management as well as opportunities in sustainable investment. Complementing our real estate and infrastructure investment areas with sustainable timberland and natural capital investing positions CapMan as a leader in unlisted real asset strategies in the Nordics. 

In October 2024, we took a significant step in the execution of CapMan’s strategy by divesting our service business CaPS for EUR 75 million. The transaction releases capital and will allow allocating more resources to accelerate the growth of our asset management business, that is at the core of our strategy. CaPS developed strongly as part of CapMan, but with limited operational links to the rest of the group, it was a natural time for the divestment. The proceeds from the transaction will be used to grow the asset management business, decrease interest bearing debt, and enable strong dividend distribution. Our growth strategy remains ambitious, with the target to increase our assets under management to EUR 10 billion. With a strong growth of 22% this year,  exceeding the overall market growth rate, and current assets under management at EUR 6.1 billion, we have truly shown our resilience and ability to grow also in a more  challenging market environment. 

Significant milestones in the journey towards becoming the most responsible private assets company in the Nordics 

In 2024 it was especially the increased geopolitical tension in several regions that caused uncertainty in the operating environment. It is the fifth consecutive year, since the outbreak of the pandemic in 2020, in which we have operated through continuous shocks to both the economic and geopolitical environment, from increasing inflation and interest rates, rocketing energy prices, supply chain disruptions to increased political tension in various regions. During times of uncertainty like this, it is even more vital that we keep focused on the long-term vision and continue to take systematic and concrete steps towards creating a sustainable future in a way that generates strong returns for our investors over the cycles. 

As a Nordic active and significant owner, we are ideally positioned to drive change towards well governed, environmentally and socially sustainable businesses and assets. Our impact comes through decisions, target-setting and finding opportunities to create value from more sustainable operating models and mitigating environmental and social challenges. For us as a private assets manager and investor, sustainability is about working together with the stakeholders in our investment portfolio to help them transform.  

CapMan wants to show leadership in tackling sustainability holistically, covering not only climate but in all our investment areas work towards nature positive approaches, that take into account the impact on all planetary boundaries, while building equitable, socially responsible businesses that respect human rights across the value chain. When it comes to emission reduction, we have made the commitment within the Science-Based Targets initiative to achieve net zero emissions by 2040, a decade ahead of the global target. This year we have also set sustainability performance targets that are linked to CapMan’s Sustainability-Linked Bond Framework. The linked KPIs cover over 90% of CapMan’s total emissions. This way sustainability performance is integrated in our funding, and awareness around our commitment to sustainability goals is increased, as this offers an opportunity to communicate about our work within sustainability in a dedicated and frequent manner. We have also introduced  sustainability metrics as part of variable renumeration, and part of the long-term share-based incentives are determined following the achievement of sustainability targets. 

Successful fundraisings and investment activity 

In the beginning of March, we closed the acquisition of Dasos Capital and established Natural Capital as a new investment area for CapMan. In April, we successfully completed two flagship fundraisings. CapMan Nordic Infrastructure II fund held its final close reaching EUR 375 million, which is a doubling in size compared to the Infrastructure I fund. The investment strategy is attractive especially for international institutional investors, and around 70% of the capital in the fund comes from outside the Nordics. CapMan Growth Equity III fund held a first close above target size in February, and a final close at hard cap of EUR 130 million in April. The fast fundraising and the high quality of the investor base is a testament to the stellar performance of the strategy. In total, we raised some EUR 570 million of new capital during 2024. 

Our transaction activity across strategies has stayed high with thirteen new investments and seven exits during the year. Through the investments we do from our funds and the value creation carried out in each asset during our ownership we contribute to building the society we want to see in the future. Our impact on the Nordic economies and societies is significant, with EUR 2.5 billion of aggregate turnover in 49 portfolio companies and 13,900 employees, and with 222 properties and 10,400 tenants. In addition, CapMan Natural Capital contributes to sustainable, low-carbon development with responsibly managed 240,000 hectares of land. 

In the annual GRESB (Global Real Estate Sustainability Benchmark) assessment our participating Real Estate and Infrastructure funds improved their scores and are among the top funds in their respective peer groups. This is testament to our active ownership approach to integrate financial and sustainability value creation. 

Strengthened focus on the asset management business 

Over the coming years CapMan seeks to significantly grow earnings from its asset management business by a combination of continued growth and improved relative profitability, as the operations scale. As demonstrated in 2024, this is achieved by increasing the size of flagship funds, introducing new products to the market, and through selective acquisitions. The long-term outlook for the private assets market remains strong and I look forward to elaborating on our strategic ambitions further in our next Capital Markets Day in March 2025. We are committed to continuing to build value for the enrichment of society. 

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