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CapMan to exit Pretax, impact on CapMan Plc’s result for 2010 approx. €1.5 million


CapMan Plc Stock Exchange Release 7 January 2010 3.30 p.m. 

CapMan to exit Pretax, impact on CapMan Plc’s result for 2010 approx. €1.5 million

Five funds managed by CapMan have signed an agreement under which they will sell their approximately 30% holding in the Finnish financial management and payroll processing services company, Pretax Oy, to a fund managed by Sponsor Capital. The transaction is expected to be completed by the end of the first quarter of 2010 and is anticipated to have an approximately €1.5 million impact on CapMan Plc’s result for 2010 as a result of carried interest income received from the Finnventure Fund V. The closing of the exit requires the completion of customary closing conditions.

The Finnventure Fund IV, Finnventure Fund V, and the Finnmezzanine Funds III A, B, and C made their initial investment in Pretax in 2000, and was followed by add-on investments, largely for M&A purposes. Pretax has expanded from Finland into the other Nordic countries, Russia and the Netherlands during CapMan’s ownership and employs close to 1,400 people in seven countries today. Pretax expects to record net sales of some €101 million in 2009.

“We saw a good opportunity to take part in the changes reshaping the financial management of small and medium-sized companies by investing in Pretax, and be part of consolidation in the field and moves to leverage the potential of new technology in accounting,” says CapMan Senior Partner Olli Liitola. “The company’s net sales have over thirty-folded during our ownership period. After a relatively long holding period the exit now announced was a normal step.”

“We have been very satisfied with how Pretax has developed during the time CapMan has been involved with the company. Pretax is well-placed to continue seeking further growth, and the other major owners continue supporting the company. In order to secure the company’s growth it was a natural step forward to search a financial owner for CapMan’s share in Pretax”, says Asko Schrey, the CEO of Pretax Oy and its largest owner.

The investment in Pretax has proved a very good one for investors in the CapMan funds concerned.

Further information:
Olli Liitola, Senior Partner, CapMan Buyout, tel. +358 400 605 040
Asko Schrey, CEO, Pretax Oy, tel. +358 40 500 1655

CapMan Plc

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 3.5 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 approx. 150 people in Helsinki, Stockholm, Copenhagen, Oslo and Moscow. CapMan was established in 1989 and its B shares are listed on the Helsinki Stock Exchange since 2001.