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CapMan Buying Russia's Norum

CapMan has agreed to acquire the management companies of Russian private equity fund Norum, from the company's senior management, DnB NOR Bank and Sitra Management.



CapMan Plc has signed an agreement to acquire management companies of Norum Russia Fund III (“Norum”) from the company's senior management, DnB NOR Bank ASA and Sitra Management Ltd (“the Sellers”). The transaction is subject to receiving necessary regulatory approvals, and it is expected to be closed by the end of June. In the first phase of the transaction 51% of Norum Russia Fund III's management company's and 100% of the advisory company's share capital and voting rights will be transferred to CapMan Plc's ownership against the payment of purchase price of approx. EUR 3.4 million. The said purchase price will be adjusted on the basis of the final size of Norum Russia Fund III, which is currently in fundraising phase. CapMan Plc will finance the acquisition with cash and a directed share issue to the Sellers. Expanding operations into Russia is a significant strategic step for CapMan. CapMan's own investment to Norum Russia III Fund is EUR 13.5 million.

The Norum team has been present in the Russian private equity market since 1995 and is one of the most experienced teams in that market. Norum has offices in Moscow and St Petersburg and strong networks in the Russian regions. As a part of the transaction Norum Russia Fund III established in July 2007 will transfer under the management of CapMan. The size of Norum Russia Fund III is currently EUR 88 million including CapMan's own investment of EUR 13.5 million. The fund's fundraising will continue under the name CapMan Russia Fund.

CapMan will establish a new investment area CapMan Russia

Norum's 13 private equity professionals will transfer to the employment of CapMan at closing. The team's investment professionals have a strong track record with investments in 24 Russian companies. Of these companies 18 have already been exited with good returns to investors. The team will in future form CapMan Russia team. Mr Hans Christian Dall Nyg