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CapMan Buyout IX fund established at EUR 203 million


CapMan Plc Stock Exchange Release 23 December 2008 9.00 a.m EET

This stock exchange release is issued pursuant to the requirements of Finnish securities laws and regulations and it may not be copied or forwarded on by any person. 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 applicable 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 its ninth buyout fund. The first closing of CapMan Buyout IX was held today at EUR 203 million. CapMan Buyout IX will invest in middle market buyout transactions in the Nordic countries. The establishment of the fund will have no impact on CapMan Plc’s result for 2008.
To date 11 institutional investors from the Nordic countries as well as CapMan Plc have made investment commitments to the CapMan Buyout IX fund. CapMan Plc’s own commitment is EUR 13 million. Fundraising for the CapMan Buyout IX fund started in September 2008.
“The fundraising climate is currently extremely tough. We’re very pleased that many of our existing investors have been able to join this closing despite the market turbulence,” says CapMan Senior Partner Jerome Bouix, who is responsible for fundraising for CapMan funds.
The establishment of CapMan Buyout IX raises the capital under management in CapMan funds to approx. EUR 3.4 billion. During the fund’s investment period the management fee paid by the fund to CapMan is based on the fund’s final size and thereafter on the acquisition cost of the remaining portfolio. The management fee will start to accrue from the first investment made by the fund.
CapMan Buyout IX will start to generate carried interest when investors have regained their investment and a preferred annual return of 8% on their investment. This normally takes 6 to 7 years. After the fund has transferred to carry the division of the fund’s cash flows will be 80% to investors, 10% to CapMan Plc and 10% to the investment team responsible for the fund’s investment activities during its life cycle. The impact of the fund’s establishment on CapMan Plc’s result for 2009 will depend, among other things, on the final size of the fund.
For more information, please contact:
Heikki Westerlund, CEO of CapMan Plc, Senior Partner, tel. +358 207 207 504 or +358 50 559 6580
Jerome Bouix, Head of Investor Services, Senior Partner, tel. +358 207 207 558 or +358 40 820 8541
Mari Reponen
Communications Director
Investor Services
Helsinki Stock Exchange
Principal media
CapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.4 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 140 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.