CapMan Plc Stock Exchange Release 16 March 2015 at 9:15 a.m.
CapMan updates its financial objectives
The Board of Directors of CapMan Plc has approved updated financial objectives for the Group as a result of a strategy process. The changes are in line with CapMan’s business model, which is divided into three sections: investment activities based on a partnership model, professional services and investments made from CapMan’s own balance sheet.
CapMan is one of the European leaders in the private equity industry. For more than 25 years, we have been developing companies and real estate and supporting their sustainable growth. We are committed to understand the needs of our customers in an ever-changing market environment. We provide attractive returns and innovative solutions for our investors and value adding services for professional investment partnerships, growth-oriented companies and tenants.
CapMan’s strategy is to combine the strengths of entrepreneurial investment partnerships and all capabilities within CapMan. During 2014, CapMan increased its service offering for external clients to leverage its expertise more efficiently. CapMan’s business is now divided into three sections: investment activities based on a partnership model, professional services and investments made from CapMan’s own balance sheet.
CapMan’s service business offering includes, among others, fundraising advisory services, purchasing activities and fund management services to both internal and external customers. The independent investment partnerships i.e. Buyout, Real Estate, Russia and Credit are responsible for investment activities and value creation in the portfolio companies. CapMan’s ownership of the investment partnerships will be 30-100% in the future. CapMan invests from its own balance sheet in the funds that it manages as well as in other assets with significant value creation potential. CapMan’s investments in its own funds vary between 1-5%, depending on the fund size.
Financial objectives
“The private equity industry continues its growth. Our target is to utilise growth opportunities in areas where we are able to add the best value to our customers. Growing fees deriving from growth in the service business as well as from successful fundraising create a good foundation for sustainable profit and EPS growth,” comments Heikki Westerlund, CEO of CapMan Plc.
Profitability:
CapMan’s target for return on equity is over 20% p.a. over the cycles. In addition to fee income and returns from our own investments, we receive carried interest income.
Capital structure:
CapMan’s target for equity ratio is 45-60%, which allows us financial flexibility with modest risk. We will always keep gearing risk in balance with our cash flow.
Dividend policy:
CapMan’s dividend pay-out ratio is at least 60% of the earnings per share. For the last 10 years the average dividend has been 7 cents. Our target is to exceed this historical level in the future.
“In the context of these changes, CapMan got a new objective and its values were further revised through an internal development process in which CapMan’s entire personnel participated. Our objective is to offer the best private equity experience, by developing innovative solutions that provide investors an access to attractive returns,” says Heikki Westerlund, CEO of CapMan Plc.
CAPMAN PLC
Board of Directors
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
www.capman.com
www.capman.com
CapMan is one of the European leaders in the private equity industry. For more than 25 years, we have been developing companies and real estate and supporting their sustainable growth. We are committed to understand the needs of our customers in an ever-changing market environment. We provide attractive returns and innovative solutions for our investors and value adding services for professional investment partnerships, growth-oriented companies and tenants.
