CapMan Russia Creates Fund for Small, Mid-Size Investments

CapMan Russia has created a new fund for investing in small and mid-sized Russian businesses. CapMan Russia II held a first close at the end of March, with EUR97 million ($124 million).


CapMan has established the CapMan Russia II fund. The first closing of the fund was held on 28 March 2013 at EUR97 million (approx. $124 million). The fund will invest in small and mid-sized enterprises (SMEs) in Russia. The positive impact of the increase in management fees as a result of the establishment of the fund is in line with previously provided guidance.

“The CapMan Russia II fund seeks to capitalise on the continued strong development of Russian SMEs through investments in fast-growing sectors, such as consumer goods and healthcare, and in the growth regions beyond Moscow and St. Petersburg. Our Moscow-based team has been successfully investing in Russian SMEs since 1996 and the establishment of this fund enables us to further build on our leading position in the Russian middle market. Deal flow remains strong and competition is still relatively low,” says Hans Christian Dall Nygård, Senior Partner and Head of CapMan Russia.

In addition to CapMan Plc and the CapMan Russia investment team, 10 investors have made commitments to the fund to date. CapMan’s and the team’s share of the commitments is EUR3 million, or approx. 3%. Fundraising for the fund continues.

“We are delighted to see a combination of existing and new LPs from the Nordics, Europe and the US in our fund. Total commitments for the 2008 vintage CapMan Russia fund were EUR118 million and we are pleased having achieved in excess of 80% of that amount already in the first closing. Russia remains a niche strategy for many LPs, but most LPs who have looked at the market fundamentals and our unique experience with fast-growing SMEs – including 28 exits and 17 years of operation – have been positively surprised by the attractiveness of this opportunity,” comments Jerome Bouix, Senior Partner, Head of Business Development and Investor Relations at CapMan.

In addition to commitments received in the first closing, the CapMan Russia II fund has received a further commitment from the European Bank for Reconstruction and Development (EBRD) of approx. EUR20 million (approx. $26 million). The total EBRD commitment is capped at 30% of the fund size and subject to certain other conditions.

CapMan Group is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of EUR3.1 billion. CapMan has five key investment partnerships – CapMan Buyout, CapMan Russia, CapMan Credit, CapMan Public Market, and CapMan Real Estate – each of which has its own dedicated investment team and funds. Altogether, CapMan employs 110 people in
Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.