CapMan, a leading alternative asset manager in the Nordic countries and Russia, has set up its fifth mezzanine fund, to be called Capman Mezzanine V, which will invest in mid-market Nordic companies. The fund will be worth EUR60 million ($78.7 million).
CapMan Plc has established its fifth mezzanine fund CapMan Mezzanine V. The fund has today held its first closing at EUR 60 million. CapMan Mezzanine V will invest in mid market companies in the Nordic region. The establishment of the fund will not have a substantial impact on CapMan Plc’s result in 2010.
“The first closing means that we are now able to start the fund’s investment operations and to take full advantage of the strong deal flow that we are currently seeing as a result of CapMan Buyout’s extensive coverage of the Nordic market. We look forward to continuing our mezzanine investment strategy of supporting Nordic mid market companies,” says CapMan Buyout’s Mezzanine Director, Niklas Östborn.
CapMan Buyout has one of the most extensive mezzanine investment track records in the Nordic region. Since the foundation of its mezzanine investment activities in 1995, CapMan Buyout has invested the capital of four mezzanine funds in 49 mid market companies. The portfolio companies typically have enterprise values of EUR 50 million to EUR 250 million and the mezzanine investments range in size from approximately EUR 10 million to EUR 20 million per company.
CapMan Mezzanine V will make mezzanine investments primarily in Nordic companies controlled by CapMan Buyout IX fund. The target size of the new fund is EUR 150 million. CapMan Plc has committed EUR 5 million to the fund.
“Although the fundraising market continues to remain challenging, mezzanine is viewed as an attractive product by many institutional investors. Mezzanine investments provide investors with an appealing risk-return profile with combination of downside protection, regular cash flow from interest payments and an equity upside potential through access to capital gains,” says Jerome Bouix, CapMan Plc’s Deputy CEO and Senior Partner responsible for fundraising.
The management fee and carried interest arrangements of the new fund are in accordance with common practice in the industry. During the fund’s investment period the management fee paid by the fund to CapMan is based on the fund’s final size and thereafter on the acquisition cost of the remaining portfolio.
The fund will transfer to carry when investors have regained their investment and a preferred annual return on their investment. After transferring to carry 80% of the fund’s cash flow will go to the fund’s investors, 10% to CapMan Plc and 10% to the investment team responsible for managing the fund.
For further information, please contact: Jerome Bouix, Deputy CEO, CapMan Plc and Senior Partner, tel. +358 (0)40 820 8541
Niklas Östborn, Mezzanine Director, CapMan Buyout, tel. +46 (0)8 545 854 76 or +46 (0)702 31 57 51
Helsinki Stock Exchange
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 approximately150 people in Helsinki, Stockholm, Copenhagen, Oslo and Moscow. CapMan was established in 1989 and its B shares have been listed on the Helsinki Stock Exchange since 2001.