CapMan Plc Stock Exchange Release 17 November 2010 9.30 a.m.
CapMan to reorganise its technology investment operations, will have at maximum an impact of EUR -5 million on CapMan’s result for 2010
CapMan has decided to reorganise its technology investment operations, a move that will have at maximum an impact of EUR -5 million on the company’s result for 2010. The change will see the CapMan Technology Team focusing on developing the value of its existing portfolio companies and maximising the return received by investors from now on. The Nordic technology sector and financing growth will remain in the focus of CapMan’s other funds also in future.
“CapMan’s goal is to offer the investors in its funds a return on their investment matching the top quartile returns in the field,” says CEO Lennart Simonsen. “The performance of early-stage technology investments in particular has not provided, not in Europe or in our operations, a sufficient level of risk-adjusted return for investors in recent years, and as a result we have decided not to establish any new, independent technology funds in future.”
The CapMan Technology 2007 fund will not invest in any new portfolio companies from now on, and the CapMan Technology Team will instead focus on developing the value of its existing portfolio companies and maximising returns for its investors. The costs of the reorganization will be at maximum EUR -5 million in 2010. CapMan will book at maximum a EUR 3.8 million write-down against the goodwill associated with the Swedestart transaction dating from 2002. In addition EUR 1.2 million will be reserved for restructuring expenses. The goodwill write-down will have no impact on the Group’s cash flows.
CapMan already earlier announced that it will not establish new, independent life science funds.
“The Nordic technology sector, growth financing, and health care will, nevertheless, remain an investment focus for CapMan’s other funds in the future,” says Simonsen. “There are 20 companies in the portfolios of our technology funds at the moment and 12 in those of our life science funds. The CapMan Technology 2007 and CapMan Life Science IV funds in particular have extensive add-on investment capital available for developing their existing investments. The companies in our Technology and Life Science portfolios are generally in good shape and many of them have significant additional value creation potential.”
The Head of the CapMan Technology Team, Senior Partner Petri Niemi, has resigned from the company and will remain with CapMan until 31 December 2010. Senior Partner Vesa Walldén has been appointed as his successor as of 1 January 2011.
Lennart Simonsen, CEO, tel. +358 (0)207 207 567
NASDAQ OMX Helsinki
CapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.6 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 approximately 150 people in Helsinki, Stockholm, Copenhagen, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and its B shares have been listed on the Helsinki Stock Exchange since 2001.