CapMan Plc has established a new private equity fund, CapMan Equity VII. The new fund is CapMan?s seventh equity fund and by the first closing now held it has capital totalling to EUR 166 million. The final size of the fund will be determined by the end of June and CapMan still expects significant commitments from new investors.
The fund comprises of three limited partnerships established in Guernsey and of one Swedish limited partnership. For the purposes of managing the fund CapMan Plc has established subsidiaries in Guernsey and Sweden.
At this stage 13 institutional investors have joined the fund. CapMan Equity VII continues to follow CapMan?s investment strategy and approximately 2/3 of the investments will be made in medium-sized buy-outs and approximately 1/3 in technology companies in the IT and telecommunications sectors. Geographically the focus of the new fund will be on the Nordic region.
The management fee and carried interest arrangements regarding the new fund are in accordance with the practice in the private equity business. CapMan Plc
shall invest EUR 15 million in the fund.
?The present market situation offers excellent opportunities for private equity investors to make new investments. Traditional industries will continue to consolidate and companies will divest their non-core assets. In addition, valuations have come down and this in turn accelerates investments in technology companies.
The new fund will strengthen CapMan?s position as a significant Nordic private equity investor. I am especially delighted that in addition to domestic investors also important foreign investors Swedish public pension fund Sjätte AP-fonden and European Investment Fund have joined our new fund,? says Ari Tolppanen,
CEO of CapMan Plc.
The new fund will increase CapMan?s funds under management to EUR 1 330 million in capital, of which EUR 465 million is managed through the affiliated company Access Capital Partners. CapMan?s latest investments include Extra Group, the leading staffing company in Finland; Kultajousi Oy, retail jewellery chain; Fastrax Oy, a manufacturer of GPS (Global Positioning System) receiver modules and Eltel Networks Oy, a specialist in design and construction of power transmission and telecommunications networks.
