CapMan Plc Stock Exchange Release – 3 November 2011 at 9.00 a.m. EET
CapMan Plc Group’s Interim Report, 1 January – 30 September 2011
Performance during the review period:
– Group turnover totalled MEUR 25.6 (January-September 2010: MEUR 29.7).
– The Group’s operating profit was MEUR 11.0 (MEUR 6.0).
– The Management Company business recorded an operating profit of MEUR 1.2 (MEUR 4.6). The Fund Investment business recorded an operating profit of MEUR 9.8 (MEUR 1.3), of which exits accounted for approximately half.
– Profit before taxes was MEUR 14.0 (MEUR 8.6) and profit after taxes was MEUR 10.5 (MEUR 7.0).
– Profit attributable to the owners of the parent company was MEUR 10.3 (MEUR 6.8). Earnings per share were 10.1 cents (5.9 cents).
– Capital under management as of 30 September 2011 totalled MEUR 3,315.1 (30 September 2010: MEUR 3,578.3). A total of MEUR 30 of new capital was raised for the CapMan Mezzanine V fund after the review period, and the fund’s size now stands at MEUR 90.
– Our guidance for 2011 remains unchanged. We expect CapMan’s operating profit for 2011 to exceed the 2010 operating profit, mainly as a result of positive development in CapMan’s own fund investments. CapMan recorded an operating profit of MEUR 6.3 excluding non-recurring items in 2010. Our guidance assumes that developments in the fair value of CapMan’s own fund investments will be neutral during the fourth quarter.
CEO Lennart Simonsen:
“CapMan’s performance and the development of our funds’ portfolio companies and properties were good during the review period. The volume of deal flow continues to remain at a good level and our funds continue to have several exit processes ongoing both for portfolio companies and real estate properties. The unease affecting the financial markets has had only a limited effect on our operations so far. Following the exits made during the review period, CapMan has a good financial position supported by 59.9% equity ratio. The visibility for the remaining part of 2011 and early 2012 is weak at the moment and, if continued, the uncertain market situation could delay our exits and reduce the availability of bank financing for M&A transactions and funding the development of our portfolio companies. After the review period we have successfully raised MEUR 30 of new capital to the CapMan Mezzanine V fund. Our next significant fundraising rounds are scheduled for 2012.”
Business operations
CapMan is a private equity fund manager operating in the Nordic countries and Russia, and it also makes investments in its own funds. The guiding principle for the investment activities of the funds managed by CapMan is to work actively and directly towards increasing the value of investments. The Group has two operating segments: a Management Company business and a Fund Investment business.
Income from the Management Company business is derived from management fees paid by funds and carried interest received from funds. Management fees normally cover the company’s operating costs and generally represent a steady and highly predictable source of income.
Income from the Fund Investment business comes from changes in the fair value of investments and realised returns on CapMan’s own fund investments. Depending on the development of funds’ investments and the general market situation, these can have a significant positive or negative impact on the Group’s result.
As there may be considerable quarterly fluctuations in carried interest and the fair value of fund investments, the Group’s financial performance should be analysed over a longer time span than the quarterly cycle.
Group turnover and result in January – September 2011
The Group’s turnover decreased during the first three quarters of 2011 compared to January-September 2010 and totalled MEUR 25.6 (MEUR 29.7). This was attributable to lower management fees compared to 2010. Operating expenses were MEUR 25.4 (MEUR 25.4).
The Group’s operating profit rose to MEUR 11.0 (MEUR 6.0). Financial income and expenses amounted to MEUR 0.2 (MEUR 0.2). CapMan’s share of the profit of its associated companies was MEUR 2.8 (MEUR 2.5). Profit before taxes was MEUR 14.0 (MEUR 8.6) and profit after taxes was MEUR 10.5 (MEUR 7.0).
Profit attributable to the owners of the parent company was MEUR 10.3 (MEUR 6.8). Earnings per share were 10.1 cents (5.9 cents).
A quarterly breakdown of turnover and profit, together with turnover, operating profit/loss, and profit/loss by segment for the review period, can be found in the Tables section of this report.
Management Company business
Turnover generated by the Management Company business during the review period totalled MEUR 25.6 (MEUR 29.7). Management fees decreased, as expected, compared to the same period last year and totalled MEUR 20.7 (MEUR 25.2). This was attributable to exits made after the comparable period in question and the decision made in the last quarter of 2010 to reduce the size of the CapMan Technology 2007 fund.
No income was generated from real estate consulting during the third quarter following the sale of the business. Consulting income during the review period as a whole totalled MEUR 1.0 (MEUR 1.2). The aggregate total of management fees and income from real estate consulting was MEUR 21.7 (MEUR 26.4).
Carried interest income totalled MEUR 3.0 and came mainly from the Finnventure V fund following the exit from Å&R Carton and from the Finnmezzanine III B fund following its transfer to carry after its exit from OneMed Group. Carried interest income during the review period totalled MEUR 2.6.
The Management Company business recorded an operating profit of MEUR 1.2 (MEUR 4.6) and a profit of MEUR 1.0 (MEUR 4.0). The status of the funds managed by CapMan is presented in more detail in Appendix 1.
Fund Investment business
Fair value changes related to fund investments during the first three quarters of 2011 were MEUR 10.2 (MEUR 1.7) and represented a 16.8% increase in value over the period (a 2.7% increase in value during the comparable period last year). Fair value development was good despite the negative development in the fair value of listed peer companies during the review period, which forms part of the valuation criteria applied to CapMan’s portfolio companies. This positive development was the result of good financial progress in portfolio companies during 2011. Completed exits accounted for approximately half of fair value changes. The aggregate fair value of fund investments as of 30 September 2011 was MEUR 67.7 (30 September 2010: MEUR 62.7).
Operating profit for the Fund Investment business was MEUR 9.8 (MEUR 1.3) and profit for the period MEUR 9.5 (MEUR 3.0). CapMan’s share of the result of its Maneq associated companies impacted profit performance. Changes in the fair value of investments made by Maneq funds impacted the performance of Maneq companies.
CapMan made new investments in its funds totalling MEUR 10.6 (MEUR 7.8) during the review period. The majority of these were made in CapMan Buyout IX and CapMan Public Market funds. CapMan received distributions from funds totalling MEUR 18.3 (MEUR 5.9). The majority of this capital was received from the CapMan Buyout VIII fund following its exit from OneMed Group and Proxima. CapMan did not make any new commitments to funds during the review period.
The amount of remaining commitments totalled MEUR 23.9 as of 30 September 2011 (30 September 2010: MEUR 39.7). The aggregate fair value of existing investments and remaining commitments as of the same date was MEUR 91.6 (MEUR 102.4). CapMan’s objective is to invest 1-5% of the original capital in the new funds that it manages, depending on fund size, fund demand, and CapMan’s own investment capacity.
Investments in portfolio companies are valued at fair value in accordance with the International Private Equity and Venture Capital Valuation Guidelines (IPEVG), while real estate assets are valued in accordance with the value appraisals of external experts, as detailed in Appendix 1. Fair value changes have no impact on the Group’s cash flows.
Investments at fair value and remaining investment capacity by investment area are presented in the Tables section.
Balance sheet and financial position as of 30 September 2011
CapMan’s balance sheet totalled MEUR 150.6 as of 30 September 2011 (30 September 2010: MEUR 146.4). Non-current assets amounted to MEUR 109.2 (MEUR 117.4), of which the carrying amount of goodwill totalled MEUR 6.2 (MEUR 10.2). A goodwill write-down of approximately MEUR 0.2 was made as a result of the sale of the real estate consulting business. Goodwill was also lower compared to the comparable period last year as a result of the write-down related to the reorganisation of technology operations booked in the last quarter of 2010.
Fund investments booked at fair value totalled MEUR 67.7 (MEUR 62.7). Long-term receivables amounted to MEUR 19.4 (MEUR 26.1), of which MEUR 18.5 (MEUR 25.4) were loan receivables from Maneq funds. Both CapMan Plc and CapMan personnel are investors in Maneq funds. The expected returns from CapMan’s Maneq investments are broadly in line with the return expectations for CapMan’s other investments in its own funds, and Maneq funds pay market rate interest on loans they receive from CapMan Plc.
Current assets amounted to MEUR 37.9 (MEUR 29.0). Liquid assets (cash in hand and at banks, plus other financial assets at fair value through profit and loss) increased as a result of the OneMed and Proxima exists made during the review period, and amounted to MEUR 32.0 (MEUR 22.1).
The size of CapMan’s hybrid bond stands at MEUR 29.0. Due to the dividends paid, the interest on the bond for the financial year is deducted from equity in line with the terms of the loan. The interest on the bond is payable semi- annually. CapMan Plc had a bank financing package totalling MEUR 44.4 (MEUR 50.6) available as of 30 September 2011, of which MEUR 34.4 (MEUR 40.6) was utilised. Trade and other payables totalled MEUR 24.1 (MEUR 21.4). The Group’s interest-bearing net debts amounted to MEUR 3.1 (MEUR 19.8).
The Group’s cash flow from operations totalled MEUR 1.0 (MEUR 12.3). Income from fund management fees is paid semi-annually, in January and July, and is shown under working capital in the cash flow statement. Cash flow from investments totalled MEUR 15.4 (MEUR -1.4) and is related to fund investments and repaid capital received by the company. Cash flow before financing totalled MEUR 16.4 (MEUR 10.9), while cash flow from financing was MEUR -18.8 (MEUR -7.7). Cash flow from financing includes the dividend paid to shareholders in April, which totalled MEUR 10.3.
Key figures as of 30 September 2011
CapMan’s equity ratio as of 30 September 2011 was 59.9% (30 September 2010: 57.3%). Return on equity was 15.7% (11.9%) and return on investment was 15.9% (10.6%). The target level for the company’s equity ratio is at least 60% and over 20% for return on equity.
Key figures
| 30.9.11 | 30.9.10 | 31.12.10 | |
| Earnings per share, cents | 10.1 | 5.9 | 17.7 |
| Earnings per share, diluted, cents | 9.9 | 5.9 | 17.7 |
| Shareholders’ equity / share, cents* | 103.3 | 94.4 | 107.7 |
| Share issue-adjusted number of shares | 84,255,467 | 84,255,467 | 84.255,467 |
| Number of shares as of 30.9 | 84,281,766 | 84,281,766 | 84.281,766 |
| Number of shares outstanding | 84,255,467 | 84,255,467 | 84,255,467 |
| Number of company shares held by CapMan as of 30.9 | 26,299 | 26,299 | 26.299 |
| Return on equity, % p.a.* | 15.7 | 11.9 | 20.8 |
| Return on investment, % p.a. | 15.9 | 10.6 | 19.7 |
| Equity ratio, % | 59.9 | 57.3 | 58.5 |
| Net gearing, % | 3.6 | 24.8 | 7.3 |
* In line with IFRS standards, the MEUR 29.0 hybrid bond has been included in equity when calculating equity per share and return on equity. The net interest on the hybrid bond for the review period has been included when calculating earnings per share.
Fundraising during the review period and capital under management as of 30 September 2011
Capital under management refers to the remaining investment capacity of funds and capital already invested at acquisition cost. Capital increases as fundraising for new funds progresses and declines as exits are made.
Globally, the overall amount of capital raised for new funds has been at a significantly low level during 2011. The market is expected to continue to remain challenging.* CapMan continued fundraising for its CapMan Mezzanine V fund during the review period, and the size of the fund rose after the review period in October from MEUR 60 to MEUR 90. CapMan also initiated fundraising preparations for a Nordic real estate fund. CapMan’s next significant new fundraising rounds will take place in 2012.
The operations of the Skandia II fund, part of the Fenno Programme, ended during the review period when it exited its last remaining investment, Å&R Carton. Capital under management decreased following the exits made after the comparable period last year and the decision made in the last quarter of 2010 to reduce the size of the CapMan Technology 2007 fund, and totalled MEUR 3,315.1 as of 30 September 2011 (30 September 2010: MEUR 3,578.3). Of this, MEUR 1,599.1 (MEUR 1,850.5) was held in funds making investments in portfolio companies and MEUR 1,716.0 (MEUR 1,727.8) in real estate funds.
Funds under management and their investment activities are presented in more detail in Appendices 1 and 2.
Board authorisations
The AGM authorised the Board to purchase CapMan B shares and accept them as pledges, to decide on a share issue, as well as the issuance of special rights entitling holders to shares. These authorisations will remain in force until 30 September 2012 and their content is covered in more detail in the stock exchange release related to the decisions adopted by the AGM issued on 30 March 2011.
Personnel
CapMan employed a total of 127 people as of 30 September 2011 (30 September 2010: 149), of whom 82 (102) worked in Finland and the remainder in the other Nordic countries, Russia, and Luxembourg. Personnel numbers dropped in the period under review mainly as a result of the sale of the real estate consulting business. A breakdown of personnel by country and team is presented in the Tables section.
Shares and share capital
There were no changes in either CapMan Plc’s share capital or the number of shares during the review period. Share capital as of 30 September 2011 totalled EUR 771,586.98. The number of B shares totalled 78,281,766 and the number of A shares 6,000,000.
B shares entitle holders to one vote per share and A shares to 10 votes per share.
Shareholders
The number of CapMan Plc shareholders increased by over 10% from the comparable period last year and totalled 5,512 as of 30 September 2011 (30 September 2010: 4,928). No flagging notices were issued during the review period.
Company shares
As of 30 September 2011, CapMan Plc held a total of 26,299 CapMan Plc B shares. There were no changes in the number of shares held by CapMan Plc during the review period.
Stock option programmes
As of 30 September 2011, CapMan Plc had one stock option programme in place – Option Programme 2008 – as part of incentive and commitment arrangements for personnel. The maximum number of stock options issued under Option Programme 2008 will be 4,270,000, which will carry an entitlement to subscribe to a maximum of 4,270,000 new B shares. The programme is divided into A and B series, both of which cover a maximum of 2,135,000 option entitlements. The share subscription price of the 2008A options is EUR 2.53 and of the 2008B option EUR 0.96. The subscription period for 2008A options started on 1 May 2011 and for 2008B options will start on 1 May 2012. Receivables from shares subscribed to using these options will be entered in the company’s invested unrestricted shareholders’ equity. As of the end of September 2011, 1,811,500 2008A stock option entitlements and 1,630,000 2008B stock option entitlements were allocated.
Trading and market capitalisation
CapMan Plc’s B shares closed at EUR 1.07 on 30 September 2011 (30 September 2010: EUR 1.42). The average price during the review period was EUR 1.52 (EUR 1.60). The highest price paid was EUR 1.84 (EUR 1.98) and the lowest EUR 0.90 (EUR 1.28). The number of CapMan Plc B shares traded during the first half of 2011 was clearly higher than in the comparable period last year, with a total of 13.3 million (9.0 million) shares traded, valued at MEUR 20.5 (MEUR 14.4).
The market capitalisation of CapMan Plc B shares as of 30 September 2011 was MEUR 83.8 (MEUR 111.2). The market capitalisation of all company shares, including A shares valued at the closing price of B shares, was MEUR 90.2 (MEUR 119.7).
Other events during the review period
CapMan sold its real estate consulting business to the business’ management at the end of June. The transaction will not have a substantive impact on CapMan’s 2011 result. Following the divestment, CapMan Real Estate will focus on managing the company’s real estate funds. CapMan Partner Mika Matikainen was appointed Head of the CapMan Real Estate team as of 1 July 2011.
CapMan acquired Corintium Oy’s 20% stake in the managing companies of CapMan’s current real estate funds at the end of June and now owns these companies in full. These transactions will not have a substantive impact on CapMan’s result for 2011 or the administration and carried interest agreements related to existing real estate funds.
CapMan signed a partnership agreement in September with NEP Partners, a real estate investment and management company founded in 2005 that operates mainly on the Swedish market. The aim of the new partnership agreement is to extend CapMan Real Estate’s operations to the broader Nordic market, and consequently CapMan has initiated fundraising preparations for establishing a Nordic real estate private equity fund.
Events after the end of the review period
As a result of share transactions by shareholders of CapMan Plc’s A shares on 6 October 2011, the Ilmarinen Mutual Pension Insurance Company’s share of the total number of shares and voting rights in CapMan Plc has exceeded 5%, Ari Tolppanen’s and Oy Aristo-Invest Ab’s combined share of the total number of shares in CapMan Plc has fallen below 10% and their combined share of voting rights in CapMan Plc has exceeded 20%, Heikki Westerlund’s and Heiwes Oy’s combined share of the voting rights in CapMan Plc has exceeded 10%, and CapMan Partners B.V.’s share of the total number of shares and voting rights in CapMan Plc has fallen below 5%. The flagging announcements associated with these changes in ownership were published on 6 October 2011.
Significant risks and short-term uncertainties
CapMan’s Management Company business is generally profitable on an annual basis, but a major element of uncertainty is associated with forecasting the company’s overall financial performance because of the timing of revenue generated from possible carried interest and the development of the fair value of fund investments. Should the current uncertainty surrounding general economic developments continue and the negative development affecting the stock market prove long-lasting, they will impact CapMan’s operations through a weakening of the exit market and a decline in the fair value of CapMan’s own fund investments.
If prolonged, the uncertainty in the market is also likely to impact fundraising by reducing fund investors’ willingness to make new commitments as a result of postponed distributions and the denominator affecting allocations between different asset classes. The fundraising environment is expected to remain challenging for at least the next 12 months, which could impact the outcome of fundraising during this period. The EU’s Basel III and Solvency II legislative initiatives may limit the ability of European banks and insurance companies to invest in private equity funds. This could also impact CapMan’s fundraising and the amount of capital that it has under management, as well as any new management fees that CapMan might receive.
Business environment
Long-term growth prospects in the demand for private equity funds continue to remain good, but the financial recession and its impact have clearly slowed growth in the private equity industry. It is unclear how the current market uncertainty will affect investors’ willingness to make new commitments in the coming months. International investor interest is currently focused primarily on small and mid-cap buyout funds.*
Private equity has consolidated its position in financing M&A activities and growth, and continues to focus typically on sector consolidation, family successions, and the privatisation of public services and functions. Real estate funds, for their part, have gained an established share of institutional investors’ investment allocations.
CapMan funds investing in portfolio companies will continue to implement their investment strategies. Bank financing for M&A and real estate investments has been at a good level in the Nordic countries, and the volume of deal flow has remained good across all CapMan’s investment areas. Continued financial turmoil may decrease the visibility of both deal flow and bank financing during the latter part of the year. The portfolios of our funds contain a number of investments that CapMan is now ready to exit from.
The development of our portfolio companies during the review period was largely good, and profit and growth projections for 2011 are mainly positive. In accordance with IPEVG criteria, the fair value development of portfolio companies will also be impacted by how the profit projections and market valuations of listed companies develop and by how the currencies used in our areas of operations perform against the euro. We plan to keep sufficient reserves in our funds to support the growth and financing of our companies. Long-term cooperation with the Nordic banks is particularly important for us, and has worked well.
In the real estate market, a significant proportion of transactions in recent years have taken place between Finnish, mainly institutional investors. International investor interest in the Finnish real estate market is clearly increasing, although to date it has mainly focused on prime properties with a lower risk ratio. Demand for the prime properties remained good during the third quarter. The total number of real estate transactions has remained relatively low, however, because of the small number of prime properties on offer and the caution shown by investors towards non-prime locations. We expect the number of real estate transactions, including those in the latter category, to increase somewhat during the last quarter of 2011 and during 2012, particularly as a result of the imbalance between supply and demand in lower-risk properties and the attractive returns offered by non-prime properties. Occupancy rates for office premises have generally continued to be satisfactory. Growth in the retail sector continued to be strong during the third quarter, which was positively reflected in shopper numbers and sales at large shopping centres.
CapMan funds investing in portfolio companies have some MEUR 545 available for making new and add-on investments, while real estate funds have an investment capacity of approximately MEUR 300, mainly for developing their existing portfolios.
The European Directive on Alternative Investment Fund Managers (AIFM directive) came into force on 21 July 2011, after which member states will have 24 months to integrate it into national legislation. The directive stipulates an operating license for participants, as well as other significant requirements, including fund investor and authority reporting. Thanks to its organisation and operating model, CapMan is in a good position to operate within the requirements of these new regulations.
Future outlook
Management fees are expected to fall behind 2010 levels in 2011 as a result of exits reducing the management fee base and significant new fundraising rounds taking place primarily in 2012. Following restructuring carried out in 2010, operating expenses will decrease, but proportionally to a lesser extent than management fees. CapMan will continue to develop its organisation to ensure growth in its key investment partnerships. Management fees will not fully cover our operating expenses in 2011.
Exit negotiations are under way in respect of a number of companies and properties in the portfolios of CapMan funds. We expect the CapMan Equity VII A, B, and Sweden funds, as well as the Finnmezzanine III A fund, to transfer to carry during 2011-2012. The development of the fair value of fund investments will depend on the development of portfolio companies and the general market situation.
Our guidance remains unchanged and we expect our operating profit for 2011 to exceed our 2010 operating profit, mainly as a result of positive development in CapMan’s own fund investments. CapMan recorded an operating profit of MEUR 6.3 excluding non-recurring items in 2010.
Our guidance assumes that developments in the fair value of CapMan’s own fund investments will be neutral during the last quarter of this year.
The CapMan Plc Group will publish its Financial Statements Bulletin for 2011 on Friday, 3 February 2012.
Helsinki, 3 November 2011
CAPMAN PLC
Board of Directors
Further information:
Lennart Simonsen, CEO, tel. +358 207 207 567 or +358 400 439 684
Niko Haavisto, CFO, tel. +358 207 207 583 or +358 50 465 4125
Distribution:
NASDAQ OMX Helsinki
Principal media
www.capman.com
* The Preqin Private Equity Quarterly, Q3 2011
Appendices (after the Tables section):
Appendix 1: CapMan Plc Group’s funds under management as of 30 September 2011, MEUR
Appendix 2: Operations of CapMan’s funds under management, 1 January – 30 September 2011
Accounting principles
The Interim Report has been prepared in accordance with the International Financial Standards (IFRS) and is in conformity with the accounting policies published in the 2010 financial statements. The revised and amended standards that came into force on 1 January had no impact on this report. The information presented in the Interim Report is un-audited.
| GROUP STATEMENT OF COMPREHENSIVE INCOME (IFRS) | |||
| (‘000) | 1-9/11 | 1-9/10 | 1-12/10 |
| Turnover | 25,608 | 29,662 | 38,150 |
| Other operating income | 641 | 65 | 22,963 |
| Personnel expenses | -16,374 | -15,644 | -25,241 |
| Depreciation and amortisation | -633 | -661 | -884 |
| Impairment of goodwill | 0 | 0 | -3,839 |
| Other operating expenses | -8,418 | -9,096 | -12,835 |
| Fair value gains / losses of investments | 10,220 | 1,652 | 2,707 |
| Operating profit | 11,044 | 5,978 | 21,021 |
| Financial income and expenses | 213 | 163 | 560 |
| Share of associated companies’ result | 2,753 | 2,480 | 2,358 |
| Profit before taxes | 14,010 | 8,621 | 23,939 |
| Income taxes | -3,499 | -1,593 | -6,383 |
| Profit for the period | 10,511 | 7,028 | 17,556 |
| Other comprehensive income: | |||
| Translation differences | 1 | 313 | 461 |
| Total comprehensive income | 10,512 | 7,341 | 18,017 |
| Profit attributable to: | |||
| Equity holders of the company | 10,323 | 6,790 | 17,328 |
| Non-controlling interests | 188 | 238 | 228 |
| Total comprehensive income attributable to: | |||
| Equity holders of the company | 10,324 | 7,103 | 17,789 |
| Non-controlling interests | 188 | 238 | 228 |
| Earnings per share for profit attributable | |||
| to the equity holders of the Company: | |||
| Earnings per share, cents | 10.1 | 5.9 | 17.7 |
| Diluted, cents | 9.9 | 5.9 | 17.7 |
Accrued interest payable on the hybrid loan for the review period has been taken into account when calculating earnings per share.
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| GROUP STATEMENT OF CHANGES IN EQUITY | ||||||||
| Attributable to the equity holders of the Company | ||||||||
| EUR (‘000) | Share capital | Share premium account | Other reserves | Trans- lation differ- ences |
Retained earnings | Total | Non-controll- ing interest |
Total equity |
| Equity on | ||||||||
| 31 Dec 2009 | 772 | 38,968 | 37,347 | -392 | 1,097 | 77,792 | 413 | 78,205 |
| Options | 1,331 | -893 | 438 | 438 | ||||
| Dividends | -3,370 | -3,370 | -309 | -3,679 | ||||
| Hybrid bond, interest (net of tax) | -2,414 | -2,414 | -2,414 | |||||
| Comprehen- sive profit |
313 | 6,790 | 7,103 | 238 | 7,341 | |||
| Equity on 30 Sep 2010 | 772 | 38,968 | 38,678 | -79 | 1,210 | 79,549 | 342 | 79,891 |
| Equity on | ||||||||
| 31 Dec 2010 | 772 | 38,968 | 38,679 | 69 | 12,241 | 90,729 | 273 | 91,002 |
| Options | 317 | 317 | 317 | |||||
| Dividends | -10,114 | -10,114 | -222 | -10,336 | ||||
| Hybrid bond, interest (net of tax) | -2,414 | -2,414 | -2,414 | |||||
| Comprehen- sive profit |
1 | 10,323 | 10,324 | 188 | 10,512 | |||
| Acquisition of non-controlling interests | -1,771 | – 1,771 | -239 | -2,010 | ||||
| Equity on | ||||||||
| 30 Sep 2011 | 772 | 38,968 | 38,679 | 70 | 8,582 | 87,071 | 0 | 87,071 |
| STATEMENT OF CASH FLOW (IFRS) | |||
| (‘000) | 1-9/11 | 1-9/10 | 1-12/10 |
| Cash flow from operations | |||
| Profit for the financial year | 10,511 | 7,028 | 17,556 |
| Adjustments | -7,453 | -1,289 | -15,958 |
| Cash flow before change in working capital | 3,058 | 5,739 | 1,598 |
| Change in working capital | 2,276 | 10,115 | 9,003 |
| Financing items and taxes | -4,310 | -3,587 | -4,580 |
| Cash flow from operations | 1,024 | 12,267 | 6,021 |
| Cash flow from investments | 15,407 | -1,379 | 19,979 |
| Cash flow before financing | 16,431 | 10,888 | 26,000 |
| Dividends paid | -10,336 | -3,679 | -3,679 |
| Other net cash flow | -8,480 | -4,062 | -6,250 |
| Financial cash flow | -18,816 | -7,741 | -9,929 |
| Change in cash funds | -2,385 | 3,147 | 16,071 |
| Cash funds at start of the period | 34,049 | 17,978 | 17,978 |
| Cash funds at end of the period | 31,664 | 21,125 | 34,049 |
| Segment information | |||||
| The Group reports two segments: Management Company business and Fund Investment business. | |||||
| 1-9/2011 | Management Company business | Fund | Total | ||
| (‘000) | CapMan Private Equity | CapMan Real Estate | Total | Investment business | |
| Turnover | 19,206 | 6,402 | 25,608 | 0 | 25,608 |
| Operating profit/loss | 1,557 | -339 | 1,218 | 9,826 | 11,044 |
| Profit/loss for the financial year | 1,382 | -339 | 1,043 | 9,468 | 10,511 |
| Assets | 8,687 | 577 | 9,264 | 99,930 | 109,194 |
| Total assets includes: | |||||
| Investments in associated companies | 0 | 0 | 0 | 9,068 | 9,068 |
| Non-current assets held for sale | 3,501 | 0 | 3,501 | 0 | 3,501 |
| 1-9/2010 | Management Company business | Fund | Total | ||
| (‘000) | CapMan Private Equity | CapMan Real Estate | Total | Investment business | |
| Turnover | 23,319 | 6,343 | 29,662 | 0 | 29,662 |
| Operating profit/loss | 4,560 | 85 | 4,645 | 1,333 | 5,978 |
| Profit/loss for the financial year | 3,931 | 102 | 4,033 | 2,995 | 7,028 |
| Assets | 14,910 | 1,469 | 16,379 | 101,061 | 117,440 |
| Total assets includes: | |||||
| Investments in associated companies | 1,688 | 0 | 1,688 | 6,315 | 8,003 |
| 1-12/2010 | Management Company business | Fund | Total | ||
| (‘000) | CapMan Private Equity | CapMan Real Estate | Total | Investment business | |
| Turnover | 29,745 | 8,405 | 38,150 | 0 | 38,150 |
| Operating profit/loss | 19,844 | -908 | 18,936 | 2,085 | 21,021 |
| Profit/loss for the financial year | 15,326 | -1,235 | 14,091 | 3,465 | 17,556 |
| Assets | 9,272 | 1,519 | 10,791 | 101,865 | 112,656 |
| Total assets includes: | |||||
| Investments in associated companies | 0 | 0 | 0 | 6,400 | 6,400 |
| Non-current assets held for sale | 3,501 | 0 | 3,501 | 0 | 3,501 |
Income taxes
The Group’s income taxes in the Income Statements are calculated on the basis of current taxes on taxable income and deferred taxes. Deferred taxes are calculated on the basis of all temporary differences between book value and fiscal value.
Dividend
A dividend of EUR 0.12 per share, totalling MEUR 10.1 in all, was paid for 2010. The dividend was paid to shareholders on 11 April 2011. (A dividend of EUR 0.04 per share, totalling MEUR 3.4 in all, was paid for 2009.)
| Non-current assets | |||
| (‘000) | 30.9.11 | 30.9.10 | 31.12.10 |
| Investments in funds at fair value through | |||
| profit and loss at Jan 1 | 66,504 | 59,421 | 59,421 |
| Additions | 10,619 | 7,827 | 11,822 |
| Distributions | -18,313 | -5,909 | -6,759 |
| Fair value gains/losses on investments | 8,861 | 1,340 | 2,020 |
| Investments in funds at fair value through | |||
| profit and loss at end of the period | 67,671 | 62,679 | 66,504 |
| Investments in funds at fair value through | |||
| profit and loss at the end of period | 30.9.11 | 30.9.10 | 31.12.10 |
| Buyout | 35,567 | 37,083 | 36,933 |
| Mezzanine | 4,625 | 3,862 | 4,238 |
| Russia | 2,459 | 1,351 | 1,488 |
| Public Market | 3,069 | 2,027 | 3,610 |
| Real Estate | 5,716 | 4,780 | 5,302 |
| Other | 11,840 | 8,385 | 10,307 |
| Access | 4,395 | 5,191 | 4,626 |
| In total | 67,671 | 62,679 | 66,504 |
| Transactions with related parties (associated companies) | |||
| (‘000) | 30.9.11 | 30.9.10 | 31.12.10 |
| Receivables – non-current at end of review period | 18,512 | 24,371 | 23,126 |
| Receivables – current at end of review period | 702 | 1,032 | 765 |
| Non-current liabilities | |||
| (‘000) | 30.9.11 | 30.9.10 | 31.12.10 |
| Interest bearing loans at end of review period | 28,905 | 35,638 | 35,371 |
Seasonal nature of CapMan’s business
Carried interest income is accrued on an irregular basis depending on the timing of exits. An exit may have an appreciable impact on CapMan Plc’s result for the financial year.
| Personnel | |||
| By country | 30.9.11 | 30.9.10 | 31.12.10 |
| Finland | 82 | 102 | 103 |
| Denmark | 3 | 3 | 3 |
| Sweden | 19 | 22 | 22 |
| Norway | 8 | 7 | 7 |
| Russia | 14 | 14 | 14 |
| Luxembourg | 1 | 1 | 1 |
| In total | 127 | 149 | 150 |
| By team | |||
| CapMan Private Equity | 57 | 64 | 64 |
| CapMan Real Estate | 23 | 40 | 43 |
| CapMan Platform | 47 | 45 | 43 |
| In total | 127 | 149 | 150 |
| Contingent liabilities | |||
| (‘000) | 30.9.11 | 30.9.10 | 31.12.10 |
| Leasing agreements | 7,699 | 9,786 | 9,191 |
| Securities and other contingent liabilities | 68,292 | 65,896 | 68,146 |
| Remaining commitments to funds | 23,852 | 39,727 | 36,299 |
| Remaining commitments by investment area | |||
| Buyout | 9,808 | 16,294 | 15,910 |
| Mezzanine | 4,281 | 5,904 | 5,069 |
| Russia | 2,247 | 3,339 | 3,225 |
| Public Market | 315 | 2,417 | 1,443 |
| Real Estate | 1,078 | 1,292 | 1,215 |
| Other | 4,214 | 8,449 | 7,414 |
| Access | 1,909 | 2,032 | 2,023 |
| In total | 23,852 | 39,727 | 36,299 |
| Turnover and profit quarterly | ||||||
| 2011 | ||||||
| MEUR | 1-3/11 | 4-6/11 | 7-9/11 | 1-9/11 | ||
| Turnover | 8.2 | 7.6 | 9.8 | 25.6 | ||
| Management fees | 7.1 | 6.8 | 6.8 | 20.7 | ||
| Carried interest | 0.4 | 0.0 | 2.6 | 3.0 | ||
| Real Estate consulting | 0.5 | 0.5 | 0.0 | 1.0 | ||
| Other income | 0.2 | 0.3 | 0.4 | 0.9 | ||
| Other operating income | 0.0 | 0.6 | 0.0 | 0.6 | ||
| Operating expenses | -8.3 | -9.2 | -7.9 | -25.4 | ||
| Fair value gains of investments | 4.1 | 6.2 | -0.1 | 10.2 | ||
| Operating profit | 4.0 | 5.2 | 1.8 | 11.0 | ||
| Financial income and expenses | 0.4 | 0.0 | -0.2 | 0.2 | ||
| Share of associated companies’ result | 0.5 | 1.9 | 0.4 | 2.8 | ||
| Profit before taxes | 4.8 | 7.2 | 2.0 | 14.0 | ||
| Profit for the period | 3.7 | 5.2 | 1.6 | 10.5 | ||
| 2010 | ||||||
| MEUR | 1-3/10 | 4-6/10 | 7-9/10 | 1-9/10 | 10-12/10 | 1-12/10 |
| Turnover | 11.4 | 9.6 | 8.7 | 29.7 | 8.5 | 38.2 |
| Management fees | 8.4 | 8.9 | 7.9 | 25.2 | 7.7 | 32.9 |
| Carried interest | 2.4 | 0.1 | 0.1 | 2.6 | 0.0 | 2.6 |
| Real Estate consulting | 0.4 | 0.4 | 0.4 | 1.2 | 0.4 | 1.6 |
| Other income | 0.2 | 0.2 | 0.3 | 0.7 | 0.4 | 1.1 |
| Other operating income | 0.1 | 0.0 | 0.0 | 0.1 | 22.9 | 23.0 |
| Operating expenses | -8.3 | -8.6 | -8.5 | -25.4 | -17.4 | -42.8 |
| Fair value gains / losses of investments | 1.1 | -0.7 | 1.3 | 1.7 | 1.0 | 2.7 |
| Operating profit | 4.3 | 0.2 | 1.5 | 6.0 | 15.0 | 21.0 |
| Financial income and expenses | -0.1 | 0.1 | 0.2 | 0.2 | 0.4 | 0.6 |
| Share of associated companies’ result | 0.8 | 1.1 | 0.6 | 2.5 | -0.1 | 2.4 |
| Profit after financial items | 5.0 | 1.4 | 2.2 | 8.6 | 15.3 | 23.9 |
| Profit for the period | 3.5 | 1.7 | 1.8 | 7.0 | 10.6 | 17.6 |
APPENDIX 1: CAPMAN PLC GROUP’S FUNDS UNDER MANAGEMENT AS OF 30 SEPTEMBER 2011, MEUR
The tables below show the status of funds managed by CapMan as of 30 September 2011. When analysing the timetable according to which funds should start generating carried interest, the relationship between the cumulative cash flows already distributed to investors and paid-in capital should be compared. When a fund starts generating carried interest the capital must be returned and an annual preferential return paid on it. The fair value of a portfolio, including any of the fund’s net cash assets, represents the capital distributable to investors at the end of the review period.
When assessing the level of cash flow a fund needs to start generating carried interest, it should be noted that the capital of some funds has not yet been called and paid in. The percentage figures in the last column on the right of the tables below show CapMan’s share of cash flows if a fund is generating carried interest. After the previous distribution of profits, any new capital paid in, as well as the preferential annual return on it, must be returned to investors before further carried interest income can be paid.
The definitions of column headings are presented below the tables.
FUNDS INVESTING DIRECTLY IN PORTFOLIO COMPANIES |
||||||||
| Size | Paid-in capital | Fund’s current portfolio | Net cash | Distributed cash flow |
CapMan’s share of | |||
| at cost | at fair value | assets | to in-vestors | to man- agement company (carried interest) |
cash flow, if fund generates carried interest | |||
| Funds generating carried interest | ||||||||
| Fenno Program 1), FM II B, FM III B and FV V | ||||||||
| Total | 258.0 | 252.2 | 18.1 | 13.0 | 2.1 | 406.6 | 17.4 | 10-20% |
| Funds that are expected to transfer to carry during 2011-2012 | ||||||||
| CME VII A | 156.7 | 152.9 | 72.4 | 73.3 | 4.3 | 148.0 | 20 % | |
| CME VII B | 56.5 | 56.5 | 26.3 | 29.9 | 2.3 | 69.1 | 20 % | |
| CME SWE | 67.0 | 66.4 | 31.0 | 31.4 | 1.8 | 63.6 | 20 % | |
| FM III A | 101.4 | 100.6 | 22.6 | 21.2 | 2.9 | 120.3 | 20 % | |
| Total | 381.6 | 376.4 | 152.3 | 155.8 | 11.3 | 401.0 | ||
| Other funds not yet in carry | ||||||||
| CMB VIII 2) | 440.0 | 372.7 | 245.0 | 242.7 | 5.5 | 153.1 | 14 % | |
| CM LS IV | 54.1 | 47.1 | 29.9 | 32.9 | 3.1 | 12.1 | 10 % | |
| CMT 2007 2). | 99.6 | 66.4 | 45.4 | 51.8 | 0.5 | 0.5 | 10 % | |
| CMR | 118.1 | 70.5 | 43.9 | 51.3 | 3.3 | 3.4 % | ||
| CMPM | 138.0 | 128.9 | 100.9 | 82.5 | 0.8 | 53.4 | 10 % | |
| CMB IX | 294.6 | 198.5 | 178,4 | 197.6 | 3.2 | 10 % | ||
| CMM V | 60.0 | 19.1 | 18.0 | 19.5 | 1.4 | 10 % | ||
| Total | 1,204.4 | 903.2 | 661.5 | 678.3 | 17.8 | 219.1 | ||
| Funds with no carried interest potential to CapMan | ||||||||
| FM III C, FV IV, FV V ET, SWE LS 3), SWE Tech 2), 3), CME VII C ja FM II A, C, D 2), CMM IV 4) | ||||||||
| Total | 574.4 | 547.6 | 184.4 | 163.4 | 21.9 | 350.4 | ||
| Funds investing in | ||||||||
| portfolio companies, total | 2,418.4 | 2,079.4 | 1,016.3 | 1,010.5 | 53.1 | 1,377.1 | 17.4 | |
| REAL ESTATE FUNDS | |||||||||
| Origi- nal |
Paid-in capital | Fund’s current portfolio |
Net cash | Distributed cash flow |
CapMan’s share of | ||||
| invest- ment capa- city |
at cost | at fair value | assets | to in- vestors | to man-agement company (carried interest) | cash flow, if fund generates carried interest | |||
| Funds not yet in carry | |||||||||
| CMRE I 5) | |||||||||
| equity and bonds | 200.0 | 188.5 | 62.1 | 49.2 | 201.8 | 27.4 | 26 % | ||
| debt financing | 300.0 | 277.2 | 78.2 | 78.2 | |||||
| total | 500.0 | 465.7 | 140.3 | 127.4 | 1.1 | 201.8 | 27.4 | ||
| CMRE II | |||||||||
| equity | 150.0 | 106.2 | 109.9 | 98.0 | 0.5 | 12 % | |||
| debt financing | 450.0 | 269.0 | 254.6 | 254.6 | |||||
| total | 600.0 | 375.2 | 364.5 | 352.6 | 3.0 | 0.5 | |||
| CMHRE | |||||||||
| equity | 332.5 | 309.3 | 353.9 | 285.7 | 21.1 | 12 % | |||
| debt financing | 617.5 | 534.7 | 510.7 | 510.7 | |||||
| total | 950.0 | 844.0 | 864.6 | 796.4 | -1.7 | 21.1 | |||
| PSH Fund | |||||||||
| equity | 5.0 | 3.5 | 3.4 | 5.6 | 0.5 | 10 % | |||
| debt financing | 8.0 | 8.0 | 7.9 | 7.9 | |||||
| total | 13.0 | 11.5 | 11.3 | 13.5 | 0.1 | 0.5 | |||
| Real estate funds, total | 2,063.0 | 1,696.4 | 1,380.7 | 1,289.9 | 2.5 | 223.9 | 27.4 | ||
| All funds, total | 4,481.4 | 3,775.8 | 2,397.0 | 2,300.4 | 55.6 | 1,601.0 | 44.8 | ||
Rahastojen lyhenteet:
| CMB | = CapMan Buyout | CMRE | = CapMan Real Estate |
| CME | = CapMan Equity | CMT 2007 | = CapMan Technology 2007 |
| CMLS | = CapMan Life Science | FM | = Finnmezzanine Fund |
| CMM | = CapMan Mezzanine | FV | = Finnventure Fund |
| CMHRE | = CapMan Hotels RE | PSH Fund | = Project Specific Hotel Fund |
| CMPM | = CapMan Public Market Fund | SWE LS | = Swedestart Life Science |
| CMR | = CapMan Russia Fund | SWE Tech | = Swedestart Tech |
Explanation of the terminology used in the fund tables
Size/Original investment capacity:
Total capital committed to a fund by investors, i.e. the original size of a fund. For real estate funds, investment capacity also includes the share of debt financing used by a fund.
Paid-in capital:
Total capital paid into a fund by investors as of the end of the review period.
Fund’s current portfolio at fair value:
Fund investments in portfolio companies are valued at fair value in accordance with the International Private Equity and Venture Capital Valuation Guidelines (IPEVG, www.privateequityvaluation.com), and investments in real estate assets are valued in accordance with the appraisals of external experts.
Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. Due to the nature of private equity investment activities, fund portfolios contain investments with a fair value that exceeds their acquisition cost, as well as investments with a fair value less than the acquisition cost.
Net cash assets:
When calculating the investors’ share, a fund’s net cash assets must be taken into account in addition to the portfolio at fair value. The proportion of debt financing in real estate funds is presented separately in the table.
CapMan’s share of cash flow if a fund generates carried interest:
When a fund has generated the cumulative preferential return for investors specified in the fund agreements, the management company is entitled to an agreed share of future cash flows from the fund, known as carried interest.
Cash flow, in this context, includes both profit distributed by funds and repayments of capital. After the previous distribution of profits, any new capital called in, as well as any annual preferential returns on it, must be returned to investors before any new distribution of profits can be paid.
Footnotes to the tables
1) Fenno Fund (established in 1997, transferred to carry in 2005) and Skandia I (established in 1997, transferred to carry in 2005) together form the Fenno Program, which is jointly managed with Fenno Management Oy.
2) The fund comprises two or more legal entities (parallel funds are presented separately only if the focuses of their investment or portfolios differ significantly).
3) Currency items are valued at the average exchange rates quoted on 30 September 2011.
4) CapMan Mezzanine IV: The paid-in commitment includes a MEUR 192 bond issued by Leverator Plc. Distributed cash flow includes payments to both bond subscribers and to the fund’s partners.
5) CapMan Real Estate I: Distributed cash flow includes repayment of the bonds and cash flow to the fund’s partners. Following the previous payment of carried interest, a total of MEUR 47.4 in paid-in capital had not yet been returned to investors. This capital, together with the annual income entitlement payable on it, must be paid to investors before further carried interest can be distributed.
CapMan’s management considers it unlikely that further carried interest will be provided by the CapMan Real Estate I fund. As a result, the fund is no longer included in the category of funds in carry. A total of some MEUR 6 of carried interest was not entered in CapMan’s profit in 2007 but held in reserve in case some carried interest might have to be returned to investors in the future.
APPENDIX 2: OPERATIONS OF CAPMAN’S FUNDS UNDER MANAGEMENT, 1 JAN – 30 SEP 2011
During the review period, the operations of private equity funds managed by CapMan comprised direct investments in portfolio companies in the Nordic countries and Russia (CapMan Private Equity), as well as real estate investments (CapMan Real Estate). Investments by CapMan funds investing in portfolio companies focus on two key investment areas in the Nordic countries and on one in Russia. These investment areas are mid-size buyouts (CapMan Buyout), investments in mid-sized companies operating in Russia (CapMan Russia), and significant minority shareholdings in listed small and mid-cap companies (CapMan Public Market). The investment focus of CapMan’s real estate funds is on real estate properties, principally in Finland. CapMan also has two other investment areas (CapMan Technology and CapMan Life Science), which do not make new investments, but concentrate instead on developing the value of their existing portfolio companies. These two latter investments areas are reported under “Other” in Private Equity.
CAPMAN PRIVATE EQUITY
Investments in portfolio companies in January-September 2011
During the review period, CapMan funds made eight new investments, together with a number of add-on investments investing MEUR 160.3 in all. Add-on investments accounted for under a third of the total. New investments were made in B&B Tools AB, Design-Talo Oy, Eastway Oy, Expert Photo, Siberian Networks, Solera AS, and Virial, as well as an investment by CapMan’s Public Market fund that has not yet been disclosed. Major add-on investments were made in Esperi Care Oy, Nice Entertainment Oy, and Walki Group Oy. During the comparable period last year, CapMan funds made seven new investments and several add-on investments totalling MEUR 144.6.
Exits from portfolio companies in January-September 2011
CapMan funds exited completely from 13 companies during the review period. Final exits were made from Aerocrine AB, Affecto Plc, EM4 Inc, Fastrax Oy, Jolife AB, Mirasys Oy, Moventas Oy, OneMed Group, Proxima Intressenter AB, Region Avia, SaaSplaza B.V, SMEF Group A/S, and Å&R Carton AB. Partial exits were made from Cardinal Foods Oy and Ordyhna Holding. Exits had a combined acquisition cost of MEUR 200.0. During the comparable period last year, complete exits were made from 10 companies and partial exits from two, with a combined acquisition cost of MEUR 99.7.
Events after the close of the review period
The CapMan Russia fund made an investment in Russian-based Lumex Instruments in October after the close of the review period. The CapMan Technology 2007 fund exited Movial Applications Oy in October after the close of the review period.
CAPMAN REAL ESTATE
Investments in and commitments to real estate acquisitions and projects in January-September 2011
The CapMan RE II fund invested in an office property in Helsinki in May. A number of add-on investments were also made by the company’s real estate funds, the most significant of which were linked to a shopping centre site in Hyvinkää and a business property in Turku. New and add-on investments totalled MEUR 42.4, with the majority focused on developing existing properties. In addition, funds were committed to finance real estate acquisitions and projects valued at MEUR 38.0 as of 30 September 2011. During the comparable period last year, funds made one new investment and a number of add-on investments totalling MEUR 18.2. Commitments to finance new projects totalled MEUR 35.0 as of 30 September 2010.
Exits from real estate investments in January-September 2011
The CapMan Real Estate I fund exited two properties – Kiinteistö Oy Munkkiniemen puistotie 25 and Kiinteistö Oy Tuusulan Pysaäkkikuja 1 – during the review period, with a combined acquisition cost of MEUR 24.8. During the comparable period last year, one exit was made, with an acquisition cost of MEUR 8.7.
FUND INVESTMENT ACTIVITIES IN FIGURES
Investments and exits made by funds at acquisition cost, MEUR
| 1-9/2011 | 1-9/2010 | 1-12/2010 | ||||
| New and add-on investments | ||||||
| Funds investing in portfolio companies | 160.3 | 144.6 | 196.2 | |||
| Buyout | 108.9 | 102.5 | 118.0 | |||
| Russia | 15.7 | 13.0 | 14.4 | |||
| Public Market | 31.1 | 9.6 | 35.6 | |||
| Other | 4.6 | 19.5 | 28.2 | |||
| Real estate funds | 42.4 | 18.2 | 45.6 | |||
| Total | 202.7 | 162.8 | 241.8 | |||
| Exits* | ||||||
| Funds investing in portfolio companies | 200.0 | 99.7 | 114.4 | |||
| Buyout | 159,3 | 58.5 | 66.3 | |||
| Russia | 10,0 | – | – | |||
| Public Market | 6,5 | 19.1 | 19.1 | |||
| Other | 24,2 | 22.1 | 29.0 | |||
| Real estate funds | 24.8 | 8.7 | 8.7 | |||
| Total | 224.8 | 108.4 | 123.1 | |||
* including partial exits and repayments of mezzanine loans.
In addition, real estate funds had commitments to finance real estate acquisitions and projects totalling MEUR 38.0 as of 30 September 2011.
Funds’ combined portfolio* as of 30 September 2011, MEUR
| Portfolio at acquisition cost |
Portfolio at fair value |
Share of portfolio (fair value) % |
|
| Funds investing in portfolio companies | 1,016.3 | 1,010.5 | 43.9 |
| Real estate funds | 1,380.7 | 1,289.9 | 56.1 |
| Total | 2,397.0 | 2,300.4 | 100.0 |
| Funds investing in portfolio companies | |||
| Buyout | 717.9 | 738.0 | 73.0 |
| Russia | 43.9 | 51.3 | 5.1 |
| Public Market | 100.9 | 82.5 | 8.2 |
| Other | 153.6 | 138.7 | 13.7 |
| Total | 1,016.3 | 1,010.5 | 100.0 |
* Total of all investments of funds under management.
Remaining investment capacity
After deducting actual and estimated expenses, funds investing in portfolio companies had a remaining investment capacity amounting to some MEUR 545 for new and add-on investments as of 30 September 2011. Of their remaining capital, approx. MEUR 360 was earmarked for buyout investments (incl. mezzanine investments), approx. MEUR 73 for technology investments, some MEUR 17 for life science investments, approx. MEUR 65 for investments by the CapMan Russia team, and approx. MEUR 30 for investments by the CapMan Public Market team. Real estate funds had a remaining investment capacity of approx. MEUR 300, which has been reserved primarily for developing funds’ existing investments.
