2009-01-29 08:30:00 CET
2009-01-29 08:31:31 CET
REGULATED INFORMATION
CapMan - Annual Financial Report
CapMan Plc Group Financial Statements Bulletin 1 January - 31 December 2008
CapMan Plc, Stock exchange release 29 January 2009 at 9.30 a.m.
CapMan Plc Group Financial Statements Bulletin 1 January - 31
December 2008
Performance and main events during 2008:
- The Group's turnover totalled MEUR 37.1 (51.6 in 2007). Larger
carried interest income in 2007 contributed mostly to the higher
turnover in the comparison year.
- The operating loss of MEUR 6.3 (operating profit MEUR 29.8 in 2007)
was largely a result of the negative change in the fair value of fund
investments.
- Management company business generated a profit (operating profit
excluding the profit impact of fund investments) of MEUR 7.1 (23.6).
- The profit impact of own fund investments, taking into account the
fair value changes of investments and realised returns included in
turnover, was MEUR -13.4 (6.2).
- Profit/loss before taxes was MEUR -10.7 (32.7) and profit/loss
after taxes was MEUR -8.1 (24.2).
- Parent company equity holders' share of profit/loss was MEUR -8.2
(18.6), and earnings per share based on it were -10.2 cents (23.8
cents).
- Capital under management grew in 2008 by some 56% to MEUR 3,407.5
(2,190.0 on 31 December 2007). The establishment of the CapMan Hotels
RE, CapMan Public Market and CapMan Buyout IX funds as well as the
transfer of the current CapMan Russia fund to CapMan's management
contributed to this growth.
- CapMan expanded its operations in line with its strategy during
2008 and established two new investment areas: CapMan Russia and
CapMan Public Market. Both areas have significant potential for
long-term growth.
- In December CapMan Plc strengthened its capital structure by
issuing a MEUR 20 hybrid bond.
- The Board of Directors will propose to the Annual General Meeting
to be held on 7 April 2009 that no dividend be paid for 2008.
CEO Heikki Westerlund comments on the events of 2008 and on future
prospects:"CapMan posted a loss for 2008 as a consequence of the negative
change in the fair value of fund investments. Nevertheless, our
management company business developed favourably and generated a
clear profit. We also succeeded well in fundraising for new funds
towards the end of the year despite the extremely difficult
fundraising climate. The establishment of our strategically important
new investment areas, CapMan Russia and CapMan Public Market, in
summer 2008 also supports future growth. Our capital under management
reached EUR 3.4 billion, representing growth of 56% compared to the
previous year.
The financial crisis, which escalated into a global recession in
autumn 2008, has clearly had an impact on investment operations.
Transaction volumes have remained low as sellers and buyers have
different price expectations and the private equity market is still
waiting positive impact of bail-out packages received by banks on
transaction financing. The pronounced slowdown of the global economy
was reflected in our portfolio companies' operations, especially in
those sectors most affected by the crisis, such as the automobile
industry. Most our funds' investment targets are in good shape and
our investment operations are well placed to exploit opportunities
presented by the prevailing market situation through new investments
and add-on acquisitions by our existing portfolio companies.
The weak exit market will mainly affect CapMan's performance through
lengthier exits and thereby postponement of potential carried
interest income. We expect favourable development in the performance
of our management company business, however, this year also. CapMan's
overall result will depend in particular on how the valuations of our
fund investments develop. Because forecasting is difficult in the
current market situation, we believe it will not be possible to
obtain realistic estimates of the performance of our portfolio
companies this year until after summer 2009. In December we
strengthened our own financial position by issuing a hybrid bond."
Business operations
CapMan is an alternative asset manager, with operations in two
business areas: CapMan Private Equity (manages funds that invest in
portfolio companies) and CapMan Real Estate (manages funds that
invest in real estate and also provides real estate consulting). The
guiding principle for funds' investment activities is to directly and
actively work towards increasing the value of investments.
Information about each business area is reported in a separate
segment in the company's interim reports.
CapMan Plc's income is derived from management fees paid by funds,
from carried interest received from funds, from returns on fund
investments made from CapMan Plc's own balance sheet, and from income
generated by real estate consulting. There can be considerable
quarterly fluctuation in carried interest as well as in the fair
value of fund investments. For this reason CapMan's financial
performance should be analysed over a longer time span than the
quarterly cycle.
Turnover and result for 2008
CapMan's turnover in 2008 amounted to MEUR 37.1 (MEUR 51.6 in 2007).
The main factors affecting turnover and result are described in more
detail in their own sections of this bulletin.
The Group's operating profit/loss totalled MEUR -6.3 (29.8).
Management company business generated a profit (operating profit
excluding the profit impact of fund investments) of MEUR 7.1 (23.6).
Profit/loss before taxes was MEUR -10.7 (32.7) and profit/loss after
taxes was MEUR -8.1 (24.2).
Parent company equity holders' share of profit/loss was MEUR -8.2
(18.6), and the earnings per share based on it were -10.2 cents
(23.8).
The quarterly breakdown of turnover and profit, as well as turnover
and profit by segment, for 2008 are presented in the tables section
of this Financial Statements Bulletin.
Management fees, real estate consulting income and operating expenses
The amount of management fees grew compared to 2007 and amounted to
MEUR 29.6 (25.0). Establishment of the new MEUR 844.9 CapMan Hotels
RE real estate fund in January 2008 contributed to the increase in
management fees throughout the year. The CapMan Public Market and
CapMan Russia funds also started to pay management fees in 2008. In
addition, a management fee of MEUR 1.8 was received regressively from
the CapMan Russia fund during the last quarter of the year.
Income from real estate consulting totalled MEUR 2.4 (2.1). The
aggregate total of management fees and income from real estate
consulting was MEUR 32.0 (27.1), and it covered the operating
expenses of MEUR 29.8 (27.7).
Carried interest
CapMan receives carried interest income from funds that have
transferred to carry - i.e. repaid paid-in capital to their investors
and paid an annual preferential return on the capital. In 2008 there
was one exit from funds in carry. As a result of the exit from
Staffpoint in May, carried interest income totalled MEUR 4.1. Carried
interest in 2007 amounted to MEUR 23.6, which accrued primarily
through the sale of CapMan Real Estate I fund's real estate
portfolio.
The status of funds managed by CapMan is presented in more detail in
Appendix 1.
Income from CapMan's own fund investments and investment commitments
The profit impact of fund investments made from CapMan's own balance
sheet was MEUR -13.4 (6.2). Of this, the realised returns from fund
investments were MEUR 0.3 (0.5) and fair value changes related to
fund investments were MEUR -13.7 (5.7). The main factor affecting
fair value changes was the general market development, but the
weakening of the Swedish krona, and the new funds' expenses had also
an impact. The valuation change of CapMan Equity VII's portfolio
company Moventas contributed most to the fair value change in the
comparison year. The negative development in the fourth quarter of
2008, altogether MEUR -11.0, was mainly attributable to the general
market situation and its impact on the multiples of portfolio
companies' listed peers used in company valuations. The change in the
fair value of CapMan's fund investments was -17.1% in the last
quarter, and -20.6% from the beginning of 2008. The aggregate fair
value of fund investments on 31 December 2008 amounted to MEUR 53.1
(MEUR 44.2 on 31 December 2007).
CapMan made new investments in its funds during 2008 amounting to
MEUR 26.3 (15.4). Most of these investments were made in the CapMan
Buyout VIII and CapMan Hotels RE funds. CapMan's objective is to
invest in its future funds 2-10% of their original capital depending
on the fund's demand and CapMan's own investment capacity. In 2008
CapMan made a MEUR 5 investment commitment to the CapMan Hotels RE
fund, a MEUR 13.5 investment commitment to the CapMan Russia fund, a
MEUR 15 investment commitment to the CapMan Public Market fund, and a
MEUR 13 investment commitment to the CapMan Buyout IX fund. The
amount of remaining investment commitments at the end of 2008 was
MEUR 77.2 (56.0). The aggregate fair value of existing investments
and remaining investment commitments on 31 December 2008 was MEUR
130.4 (MEUR 100.2 on 31 December 2007).
Investments in portfolio companies are valued at fair value in
accordance with the International Private Equity and Venture Capital
Valuation Guidelines (IPEVG), and real estate assets are valued in
accordance with the value appraisements of external experts, as
detailed in Appendix 1.
Hybrid bond
On 18 December 2008 CapMan Plc issued a MEUR 20.0 hybrid bond to
Finnish institutional investors. The issue will strengthen the
Group's capital structure and, in line with Group strategy, finance
investments that CapMan Plc has made to the funds managed by the
Group. The coupon rate for the bond is 11.25% p.a. and it is payable
semi-annually.
The bond has no maturity date but the company may call the bond after
five years. The size of the issue may be increased to at most MEUR
30.
Balance sheet and financial position on 31 December 2008
CapMan's balance sheet total increased during 2008 to MEUR 138.0
(MEUR 117.4 on 31 December 2007). Non-current assets increased during
2008 to MEUR 99.8 (74.9), mainly due to investments made in funds, to
growth in receivables, and to an increase in goodwill of MEUR 6.5
recognised for the Norum acquisition. Long-term receivables amounted
to MEUR 24.5 (16.2), of which MEUR 21.1 (11.6) comprised loan
receivables from the Maneq funds. In addition to CapMan Plc, CapMan
personnel are investors in the Maneq funds, the expected returns from
which are broadly in line with the return expectations for CapMan's
own fund investments. Maneq funds pay market rate interest on loans
they receive from CapMan Plc.
Current assets amounted to MEUR 38.2 (42.4). Liquid assets (cash in
hand and at banks, plus other financial assets at fair value through
profit and loss) amounted to MEUR 25.3 (34.6). Liquid assets include
the hybrid bond issued on 18 December 2008. In the comparison period
liquid assets were exceptionally high due to the carried interest
income received from CapMan Real Estate I fund's sale of its real
estate portfolio.
Equity in the balance sheet includes the hybrid bond issued on 18
December 2008, which has been entered in 'Other reserves'. At 31
December 2008 CapMan Plc had a bank financing package of MEUR 60
(16.0) available, of which MEUR 46 (16.0) was in use.
Interest-bearing liabilities increased as CapMan pursued its strategy
of using debt financing to finance some of its investments in funds.
The amount of trade and other payables was MEUR 15.8 (21.4). The
Group's interest-bearing net debts amounted to MEUR 20.7 (-18.6).
Key figures
CapMan's equity ratio on 31 December 2008 was 50.3% (57.6% on 31
December 2007). Return on equity was -11.8% (38.9%) and return on
investment was -6.3% (44.2%). The target level for the equity ratio
is at least 50% and for return on equity at least 25%.
31.12.08 31.12.07
Earnings per share, cents -10.2 23.8
Diluted, cents -9.8 23.7
Shareholders' equity per share, cents* 86.1 86.4
Share issue adjusted number of shares 80,432,600 78,142,867
Number of shares at end of period 81,458,424 79,968,819
Number of shares outstanding 81,322,921 79,968,819
Own shares held by the Company at end of period 135,503 0
Return on equity, % -11.8 38.9
Return on investment, % -6.3 44.2
Equity ratio, % 50.3 57.6
Net gearing, % 30.0 -27.5
* In line with IFRS standards, the MEUR 20 hybrid bond issued on 18
December 2008 is included in equity and also in calculating equity
per share.
Board's proposal for distribution of profit
CapMan Plc's target is to distribute at least 50% of net profit as
dividends. Owing to the loss made in 2008 and the uncertainty
attached to the current market situation, CapMan Plc's Board of
Directors will propose to the Annual General Meeting to be held on 7
April 2009 in Helsinki that no dividend be paid to shareholders for
2008. The company's distributable funds amounted to MEUR 11.0 on 31
December 2008 (MEUR 19.0 on 31 December 2007).
Norum acquisition and expansion of operations in Russia
On 26 May 2008 CapMan Plc signed an agreement to buy private equity
house Norum from the company's senior management, DnB NOR Bank ASA
and Sitra Management Ltd. The transaction was closed on 27 August
2008, on terms whereby 51% of the CapMan Russia fund's management
company's and 100% of the advisory company's share capital and voting
rights were transferred to CapMan Plc's ownership. The CapMan Russia
fund, which is currently in the fundraising phase, was also
transferred under CapMan's management. The fund makes investments in
mid-size companies operating in Russia, and its size is currently
MEUR 118.1. CapMan Plc's own commitment to the fund is MEUR 13.5.
The purchase price of the shares was approx. MEUR 3.4. Some MEUR 1 of
the purchase price was paid in cash and the remaining MEUR 2.4
through a direct share issue to the sellers. The value of each B
share in the transaction was EUR 2.43 corresponding to the volume
weighted average trading price of CapMan B shares between 22 April
2008 and 21 May 2008. CapMan Plc issued a total of 982,539 new CapMan
Plc B shares, the three-phase lock-up for which will end on 25 May
2011. The purchase price of the shares will be adjusted on the basis
of the final size of CapMan Russia fund.
CapMan Plc has the right to buy the remaining 49% of Norum shares by
July 2012 at the latest. The sellers have the right to sell their
remaining Norum shares to CapMan at any time. The payable transaction
price per share will be the same as the fundraising adjusted
transaction price in the first phase of the transaction.
Expanding operations into Russia is an important strategic step for
CapMan, as the Russian market has considerable potential for
long-term growth. Following the transaction 12 persons transferred to
CapMan Group. The CapMan Russia team is headed by CapMan's senior
partner Mr Petri Saavalainen, while Mr Hans Christian Dall Nygård,
the former Managing Director of Norum and now a partner in CapMan, is
responsible for all the investment activities of CapMan Russia.
CapMan Russia is included in the CapMan Private Equity business area
in CapMan Plc's financial reporting. As a subsidiary, Norum is fully
consolidated in CapMan Group's figures, including the goodwill
arising from the transaction. The Norum acquisition will have no
significant impact on CapMan Plc's result over the next few years.
CapMan Public Market fund
On 11 July 2008 CapMan Plc established a new equity fund, CapMan
Public Market. The size of the fund is at present MEUR 106, including
CapMan Plc's commitment of MEUR 15. The CapMan Public Market fund
invests in Nordic listed companies that have a market capitalisation
of MEUR 100-1,000, and it utilises private equity style value
creation methods in its operations. The fund's fundraising continues.
The establishment of the fund was the start of CapMan's sixth
investment area, CapMan Public Market, which is headed by CapMan's
senior partner Mr Jukka Ruuska. CapMan Public Market is included in
the CapMan Private Equity business area in CapMan Plc's financial
reporting. CapMan Public Market's operations have considerable
potential for long-term growth, but establishment of the investment
area will have no significant impact on CapMan Plc's result over the
next few years.
CapMan Hotels RE fund
On 18 January 2008 CapMan Plc established a new private equity fund
focusing on hotel real estate, CapMan Hotels RE Ky. The size of the
hotel fund at the end of 2008 was MEUR 844.9, and the fund's
fundraising is ongoing. The fund acquired a MEUR 805 hotel portfolio
of 39 properties from Northern European Properties Ltd in conjunction
with its establishment. Seven professionals in the hotel business
transferred to CapMan Group through the transaction. The management
company of CapMan Hotels RE Ky is CapMan Hotels RE Oy, of which
CapMan Plc owns 80%. Establishment of the fund has had a slightly
positive effect on CapMan Plc's result in 2008 through the management
fees paid by the fund.
CapMan Buyout IX fund
On 22 December 2008 CapMan Plc established its ninth buyout fund,
CapMan Buyout IX. The size of the fund after the first closing was
MEUR 203, including CapMan Plc's own investment commitment of MEUR
13. The fund will make investments in mid-sized Nordic buyouts, and
its fundraising is ongoing. The fund will start paying a management
fee to CapMan as from its first investment.
Capital under management on 31 December 2008
Capital under management refers to funds' remaining investment
capacity and capital already invested at acquisition cost. CapMan's
target is to increase the capital under management by an average 15%
per year. As a result of the establishment of the CapMan Hotels RE,
CapMan Public Market and CapMan Buyout IX funds, and of the CapMan
Russia fund being transferred to CapMan's management, the capital
under management grew in 2008 by some 56% from MEUR 2,190.0 to MEUR
3,407.5. At the end of 2008, MEUR 1,767.0 (1,394.3) was in funds
making investments in portfolio companies and MEUR 1,640.5 (795.7) in
real estate funds. Capital was raised during 2008 as follows:
Fund Estab- Capital Capital CapMan CapMan
lished 31.12.07 31.12.08 Group's Group's
MEUR MEUR commit- carried
ment interest
MEUR (net*)
CapMan Technology 2007 9.2.2007 140.3 142.3 15.0 10%
CapMan Hotels RE Ky 18.1.2008 0.0 844.9 5.0 12%
CapMan Public Market Fund 11.7.2008 0.0 106.0 15.0 10%
CapMan Russia Fund** 27.8.2008 56.0 118.1 13.5 n/a
CapMan Buyout IX 22.12.2008 0.0 203.0 13.0 10%
* CapMan Group's carried interest taking into account the carried
interest due to management companies' other owners and investment
teams after the fund has transferred into carry. Carried interest =
share of the fund's cash flows after it has transferred into carry.
** The CapMan Russia fund was transferred to CapMan's management on
27 August 2008 on finalisation of the Norum acquisition. CapMan Plc's
share of carried interest will depend on the final size of the fund
and will be announced in conjunction with notification of the final
fund size.
Capital under management was reduced by exits made during 2008,
amounting to MEUR 39.4 at acquisition price. The Nordic Private
Equity Partners II fund was terminated owing to its exit during the
year from its last remaining investment.
More detailed information about managed funds and their investment
activities is presented in Appendices 1 and 2.
Personnel
On 31 December 2008 CapMan employed altogether 141 people (110 people
on 31 December 2007), of whom 102 (86) worked in Finland and the
remainder worked in other Nordic countries or Russia. In particular,
the establishment of the new hotel fund and the Norum acquisition
both contributed to growth in the number of personnel. A breakdown of
personnel by country and by team is presented in the tables section
of this Financial Statements Bulletin.
Shares and share capital
There were no changes in CapMan Plc's share capital during 2008.
Share capital on 31 December 2008 was MEUR 771,586.98 (MEUR
771,586.98 on 30 December 2007). The number of CapMan Plc's listed B
shares increased during the year by altogether 1,489,605 shares,
after a total of 507,066 B shares were subscribed for with 2003A
options and 982,539 new B shares were issued in connection with the
Norum acquisition. The number of B shares on 31 December 2008 was
75,458,424, and the number of unlisted A shares 6,000,000.
Shareholders
CapMan Plc had 4,514 shareholders on 31 December 2008 (4,489 on 31
December 2007). The biggest change in the Company's ownership during
2008 was that following the Norum transaction Norum's management
became shareholders of CapMan Plc with a combined holding of 1.21% in
the company. No flagging notices were issued during 2008.
Own shares
CapMan Plc's Board of Directors decided on 8 August 2008 to start
purchases of CapMan Plc B shares based on the authorization granted
by the Annual General Meeting on 27 March 2008. During the period 18
August -15 October 2008 a total of 135,503 was repurchased. The
authorization to repurchase CapMan Plc B shares applies to a maximum
8,000,000 shares and is valid until 30 June 2009.
Stock option programs
At the end of 2008 CapMan Plc had two stock option programs as part
of the incentive and commitment program for the key personnel: Option
program 2003 and Option program 2008. The 2003B options are traded on
the options list of the OMX Nordic Exchange in Helsinki. A total of
625,000 B shares can still be subscribed for with 2003B options, for
which the subscription period ends on 31 October 2009. No shares were
subscribed for with 2003B options in 2008. At the end of October
2008, a total of 507,066 B shares were subscribed for with 2003A
options, which expired at the end of October 2008. Receivables from
shares subscribed for with options are entered in the company's
invested unrestricted shareholders' equity.
CapMan Plc's Annual General Meeting held on 27 March 2008 approved
the issue of stock options to key personnel under the Option program
2008. The maximum total number of stock options issued within the
Option program 2008 will be 4,270,000, which will carry entitlement
to subscribe for a maximum total of 4,270,000 new B shares. The
subscription period for 2008A options starts on 1 May 2011 and for
2008B options on 1 May 2012.
Trading and prices of shares and stock options
The exceptional market climate and the steep decline in global stock
markets in 2008 were also reflected in the trading volumes and prices
of CapMan Plc shares. On 31 December 2008 the closing price of CapMan
Plc B shares was EUR 0.95 (EUR 3.25 on 31 December 2007). The average
price during the year was EUR 2.09 (3.49). The highest price was EUR
3.40 (4.07) and the lowest EUR 0.79 (2.86). The trading of the
company's shares declined appreciably with respect to 2007, in terms
of both volume and value. Altogether 14.8 (30.9) million CapMan Plc B
shares were traded in 2008 for a total of MEUR 29.6 (107.0).
The market capitalisation of CapMan Plc B shares on 31 December 2008
was MEUR 71.7 (240.4). The market capitalisation of all shares, in
which the A shares are valued at the closing price of B shares for
the review period, was MEUR 77.4 (259.9).
Board authorisations
By decision of the Annual General Meeting, CapMan Plc's Board of
Directors is authorised to decide on a share issue as well as to
issue stock options and other entitlements to shares, and is also
authorised to purchase the Company's own shares and to accept them as
a pledge. The authorisations are valid until 30 June 2009, and the
terms and conditions attached to them were specified in more detail
in the Stock Exchange release issued on 27 March 2008.
Other events in 2008
On 9 October 2008 CapMan Plc announced that the sale of Access
Capital Partners (Access), first announced on 25 July 2008, was
cancelled after the purchaser announced that its lender bank had
decided to withdraw the pre-agreed financing from the transaction,
invoking force majeure caused by the general financial crisis. CapMan
Plc continues as a 35% minority shareholder in Access after the
cancellation of the deal. The original sizes of the funds and the
mandates managed by Access on 31 December 2008 are presented in
Appendix 3.
Significant risks and short-term uncertainties
CapMan Plc's management company business is profitable, but the
prevailing market climate has increased the uncertainty attached to
forecasting the company's financial performance. The combination of
an almost total standstill in the buyout market, a credit squeeze and
a sharp decline in fair values of investment targets have appreciably
weakened exit opportunities. This can result in postponement of
exits, and consequently therefore of carried interest income. In the
real estate market, the economic climate can impact tenants'
operations, and thereby the vacancy rate and rental income of
investment properties. CapMan believes that fundraising also will
continue to be challenging, which might affect the end result of
ongoing fundraising activities and, through that, management fees
over the next few years. CapMan Plc's financial position was
strengthened by issuing a MEUR 20 hybrid bond in December.
Publication of the Financial Statements and Report of the Board of
Directors, and Annual General Meeting 2009
CapMan Plc's Financial Statements and Report of the Board of
Directors for 2008 will be published in full together with the
company's Annual Report for 2008 in week 11. CapMan Plc's 2009 Annual
General Meeting will be held on Tuesday 7 April 2009 in Helsinki,
Finland.
Business environment
The prospects for growth in the demand for alternative assets have
remained good over the long term. The financial crisis and the steep
decline in market valuations of other asset classes, however, are
clearly slowing the growth in the alternative asset class. Private
equity has consolidated its position in financing M&A and growth, and
continues to focus typically on consolidation in various sectors,
family successions, privatisation of public services and functions,
and the commercialisation of R&D in the technology and life science
sectors. Increased entrepreneurial activity has also boosted growth.
Real estate funds, for their part, have gained an established share
of institutional investors' investment allocations.
The CapMan funds investing in portfolio companies will continue to
implement their investment strategies. The deep crisis in the debt
market has been reflected, however, in CapMan's operating area also.
At present the M&A market is still waiting for the positive impact of
banking sector bail-out plans to materialise. The banks have focused
their lending on large corporations in particular which has delayed
the positive impact on other companies. We believe that bank
financing for buyouts, mergers & acquisitions and real estate
investments will gradually recover during 2009. The market looks
promising for new investments both in the Nordic countries and
Russia. The number of new potential portfolio companies has remained
at a good level especially for the Public Market and Russia funds.
The exit market has at present come to a standstill and the impact of
the crisis is visible in lower prices.
The slowdown in growth of the real economy has been seen in our
portfolio companies, especially in those sectors that are linked, for
instance, to consumer demand or the automobile industry. Generally
our portfolio companies' development has been favourable, but
forecasting for 2009 is difficult. A steep decline in listed market
valuations was reflected in the fair value of our investments. We
plan to keep enough reserves in our funds to support our companies'
growth and financing in this market situation. Long-term cooperation
with Nordic banks is particularly important to us.
In the real estate sector, instability in debt markets has
appreciably depressed the volume of real estate transactions. Tighter
bank credit will continue to affect both competition and the
valuation levels in the real estate sector, and we expect to see
increased use of equity for the financing of real estate
transactions. Demand for prime real estate is still at a good level
and the changed market situation could well open up good investment
opportunities. The challenging market has boosted demand for real
estate consulting. On the leasing market, the occupancy rate and
demand for office and retail premises remain at a good level. Vacancy
rates for office premises, however, are expected to rise in the
Helsinki metropolitan area.
All CapMan's investment teams are in a good position and have
adequate resources to implement their investment strategies in the
Nordic countries and Russia. The funds investing in portfolio
companies have some MEUR 875 for making new and follow-on
investments, while the real estate funds have approx. a MEUR 320
investment capacity for identifying new investment targets and
developing the existing portfolio.
Future outlook
CapMan's strategy is to exploit growth opportunities within the
alternative asset class. The projects for expanding geographically
into Russia and for establishing a fund utilising private equity
style value creation methods in public markets have now been
implemented, and these funds are now in the fundraising phase. A new
buyout fund was established in December and its fundraising is also
ongoing. We will focus on fully exploiting our existing business
portfolio, and we have no plans to expand it in the near future.
CapMan will invest in its future funds 2-10% of their original
capital depending on the fund's demand and CapMan's own investment
capacity. As one element in preparing for the continuation of the
weak exit market CapMan is exploring possibilities for incorporating
its own fund investments. This would clarify the difference between
CapMan's management company business and its own investment
operations and enable having third party investors in the possible
new vehicle to be formed. CapMan strengthened its financial position
in December by issuing a MEUR 20 hybrid bond. The size of the bond
can be increased to MEUR 30.
Management fees and income from real estate consulting will cover
CapMan's fixed expenses in 2009. Income from carried interest will
depend on developments in the exit market. Despite the slowdown in
the exit market, the funds still have portfolio companies ready to
enter the exit process. We expect the CapMan Equity VII A, B and
Sweden funds as well as the Finnmezzanine III A and B funds to
transfer to carry during 2009-2010. The unstable market climate and
the sharp decline in listed peers' valuations may, however, be
reflected as a decline in the fair value of CapMan Plc's fund
investments in 2009. The Group's overall result for 2009 will mainly
depend on whether new exits are made by funds already generating
carried interest, and on how the value of investments develops in
those funds in which CapMan is a substantial investor.
CapMan Plc's Interim Report for January-March 2009 will be published
on Monday 11 May 2009.
Helsinki, Finland, 29 January 2009
CAPMAN PLC
Board of Directors
Press conference
A press conference for analysts and the media will be held today at
12 noon in CapMan's offices at Korkeavuorenkatu 32, Helsinki,
Finland. CapMan's CEO Heikki Westerlund will present the result for
2008 and review the market situation. A light lunch will be served at
the event.
Presentation material for the press conference will be published in
Finnish and English on CapMan Plc Group's internet website once the
conference has started.
Further information:
Heikki Westerlund, CEO, tel. +358 207 207 504 or +358 50 559 6580
Kaisa Arovaara, CFO, tel. +358 207 207 583 or +358 50 370 3715
Distribution:
Helsinki Stock Exchange
Principle media
www.capman.com
Appendices (after the tables section):
Appendix 1: CapMan Plc Group's funds under management at 31 December
2008, MEUR
Appendix 2: Operations of CapMan's funds under management, 1 January
- 31 December 2008
Appendix 3: Capital and mandates under management of associated
company Access Capital Partners, 31 December 2008
Accounting principles
The Group's financial statement bulletin has been prepared in
accordance with the previous accounting principles, while addressing
the IFRS interpretations arising during financial year 2008. The
financial statement bulletin has not been audited.
GROUP INCOME STATEMENT (IFRS)
TEUR 1-12/08 1-12/07
Turnover 37,126 51,572
Other operating income 108 236
Personnel expenses -16,867 -15,381
Depreciation and amortisation -635 -581
Other operating expenses -12,321 -11,783
Fair value gains / losses of investments -13,709 5,696
Operating profit/loss -6,298 29,759
Financial income and expenses -1,994 1,070
Share of associated companies' result -2,378 1,915
Profit/loss before taxes -10,670 32,744
Income taxes 2,612 -8,509
Profit/loss for the financial year -8,058 24,235
Attributable to:
Equity holders of the company -8,209 18,620
Minority interest 151 5,615
Earnings per share for profit/loss attributable
to the equity holders of the Company:
Earnings per share, cents -10.2 23.8
Diluted, cents -9.8 23.7
Operating profit/loss, % -17.0 57.7
GROUP BALANCE SHEET (IFRS)
TEUR 31.12.08 31.12.07
ASSETS
Non-current assets
Tangible assets 1,064 819
Goodwill 11,762 4,845
Other intangible assets 3,229 1,001
Investments in associated companies 1,575 3,407
Other financial assets at fair value
through profit and loss
Investments in funds 53,147 44,230
Other financial assets 828 878
Receivables 24,451 16,191
Deferred income tax assets 3,707 3,547
99,763 74,918
Current assets
Trade and other receivables 12,965 7,837
Other financial assets at fair value
through profit and loss 942 14,857
Cash in hand and at bank 24,330 19,741
38,237 42,435
Total assets 138,000 117,353
EQUITY AND LIABILITIES
Capital attributable to the Company's equity
holders
Share capital 772 772
Share premium account 38,968 38,968
Other reserves 25,829 2,961
Translation difference -226 133
Retained earnings 3,585 24,676
68,928 67,510
Minority interest 221 34
Total equity 69,149 67,544
Non-current liabilities
Deferred income tax liabilities 284 3,734
Interest-bearing loans 43,125 16,000
Other liabilities 6,600 701
50,009 20,435
Current liabilities
Trade and other payables 15,751 21,356
Interest-bearing loans and borrowings 2,875 0
Current income tax liabilities 216 8,018
18,842 29,374
Total liabilities 68,851 49,809
Total equity and liabilities 138,000 117,353
GROUP STATEMENT OF CHANGES IN EQUITY
Attributable to the equity holders of the Company
Share Share Other Trans- Re- Total Min- Total
capital premium reser- lation tained ority equity
account ves differ- ear- inte-
TEUR rences nings rest
Equity on
31.12.2006 772 38,968 1,218 316 15,074 56,348 599 56,947
Share
subscrip-
tions with
options 1,726
Translation
difference -183
Options 17 223
Profit for
the
financial
year 18,620 5,615
Dividends
paid -9,259 -6,222
Other
changes 18 42
Equity on
31.12.2007 772 38,968 2,961 133 24,676 67,510 34 67,544
Equity on
31.12.2007 772 38,968 2,961 133 24,676 67,510 34 67,544
Share
subscrip-
tions with
options 639
Translation
difference -359
Options 112 -87
Share issue 2,392
Repurchase
of
own shares -275
Loss for
the
financial
year -8,209 151
Dividends
paid -12,795
Other
changes 20,000 36
Equity on
31.12.2008 772 38,968 25,829 -226 3,585 68,928 221 69,149
GROUP'S CASH FLOW (IFRS)
TEUR 1-12/08 1-12/07
Cash flow from operations
Profit/loss for the financial year -8,058 24,235
Adjustments 16,526 239
Cash flow before change in working capital 8,468 24,474
Change in working capital -4,564 5,662
Financing items and taxes -10,088 -1,111
Cash flow from operations -6,184 29,025
Cash flow from investments -24,168 -6,823
Cash flow before financing -30,352 22,202
Dividends paid (incl. minority share) -18,589 -9,687
Other net cash flow 53,530 -6,911
Financial cash flow 34,941 -16,598
Change in cash funds 4,589 5,604
Cash funds at start of the period 19,741 14,137
Cash funds at end of the period 24,330 19,741
Segment information
TEUR 1-12/08 1-12/07
Turnover
CapMan Private Equity 29,609 25,840
CapMan Real Estate 7,517 25,732
Total 37,126 51,572
Operating profit/loss
CapMan Private Equity -5,565 9,484
CapMan Real Estate -733 20,275
Total -6,298 29,759
Income taxes
The Group's tax expenses for 2008 comprise taxes on taxable income
for the period and deferred taxes. Deferred taxes are calculated on
the basis of all temporary differences between book value and fiscal
value.
Dividends
A dividend of EUR 0.16 per share was paid for financial year 2007,
representing a total of MEUR 12.8 (2006: EUR 0.12 per share
representing a total of MEUR 9.3).
Non-current assets
TEUR 31.12.08 31.12.07
Investments in funds at fair value through
profit and loss at Jan 1 44,230 33,122
Additions 26,326 15,384
Disposals -3,700 -9,972
Fair value gains/losses on investments -13,709 5,696
Investments in funds at fair value through
profit and loss at end of the period 53,147 44,230
Additions and investments in funds by area:
1-12/08 1-12/07
Additions
Funds investing in portfolio companies 20,555 14,500
Real estate funds 5,296 598
Access Capital Partners 475 286
Total 26,326 15,384
Investments in funds at fair value through
profit and loss at the end of period 31.12.08 31.12.07
Funds investing in portfolio companies 42,026 36,010
Real estate funds 5,088 526
Access Capital Partners 6,033 7,694
Total 53,147 44,230
Transactions with related parties (associated companies)
TEUR 31.12.08 31.12.07
Receivables - non-current at end of year 21,257 12,497
Receivables - current at end of year 2,196 879
Non-current liabilities
TEUR 31.12.08 31.12.07
Interest-bearing loans at end of year 43,125 16,000
Seasonal nature of business
Carried interest income is accrued on an irregular schedule depending
on the timing of exits. One exit may have an appreciable impact on
CapMan Plc's result for the full financial year.
Personnel
By country 31.12.08 31.12.07
Finland 102 86
Denmark 3 4
Sweden 19 15
Norway 6 5
Russia 11 0
Total 141 110
By team
CapMan Private Equity 54 37
CapMan Real Estate 43 30
Investor Services 24 25
Internal Services 20 18
Total 141 110
Contingent liabilities
TEUR 31.12.08 31.12.07
Leasing contracts and other contingent liabilities 18,691 17,081
Commitments to funds 77,234 55,994
Commitments to funds by area
Funds investing in portfolio companies 72,949 51,577
Real estate funds 1,879 2,174
Access Capital Partners 2,406 2,243
Total 77,234 55,994
Of the remaining investment commitments, MEUR 15 is allocated to the
CapMan Public Market fund, MEUR 13 to the CapMan Buyout IX fund, MEUR
12 to the CapMan Buyout VIII fund, MEUR 11.1 to the CapMan Russia
fund, MEUR 10.8 to the CapMan Technology 2007 fund and the remainder
mainly to the CapMan Life Science IV, CapMan Mezzanine IV, CapMan
Equity VII and Access Capital Fund II funds.
Turnover and profit/loss
quarterly
2008
MEUR 1-3/08 4-6/08 7-9/08 10-12/08 1-12/08
Turnover 7.2 12.3 7.7 9.9 37.1
Management fees 6.4 7.2 7.3 8.7 29.6
Carried interest 0.0 4.1 0.0 0.0 4.1
Income of investments in funds 0.0 0.2 0.0 0.1 0.3
Real estate consulting 0.7 0.6 0.4 0.7 2.4
Other income 0.2 0.1 0.0 0.4 0.7
Other operating income 0.0 0.0 0.0 0.1 0.1
Operating expenses -6.7 -7.9 -6.6 -8.6 -29.8
Fair value gains / losses of
investments -0.1 -1.2 -1.4 -11.0 -13.7
Operating profit/loss 0.4 3.3 -0.4 -9.6 -6.3
Financial income and expenses 0.3 -0.1 -0.8 -1.4 -2.0
Share of associated companies'
result 0.1 -0.2 0.2 -2.5 -2.4
Profit/loss before taxes 0.7 3.0 -1.0 -13.4 -10.7
Profit/loss for the period 0.5 2.2 -0.8 -10.0 -8.1
2007
MEUR 1-3/07 4-6/07 7-9/07 10-12/07 1-12/07
Turnover 28.1 7.5 8.0 8.0 51.6
Management fees 5.9 6.6 6.3 6.2 25.0
Carried interest 21.2 0.2 1.0 1.2 23.6
Income of investments in funds 0.3 0.0 0.1 0.1 0.5
Real estate consulting 0.6 0.5 0.5 0.5 2.1
Other income 0.1 0.2 0.1 0.0 0.4
Other operating income 0.0 0.1 0.0 0.1 0.2
Operating expenses -6.8 -7.0 -6.0 -7.9 -27.7
Fair value gains / losses of
investments 4.1 0.5 2.9 -1.8 5.7
Operating profit / loss 25.4 1.1 4.9 -1.6 29.8
Financial income and expenses 0.3 0.2 0.2 0.4 1.1
Share of associated companies'
result 0.9 0.2 0.8 0.0 1.9
Profit/loss before taxes 26.7 1.4 5.9 -1.3 32.7
Profit/loss for the period 19.9 1.0 4.6 -1.3 24.2
APPENDIX 1: CAPMAN PLC GROUP'S FUNDS UNDER MANAGEMENT ON 31 DECEMBER
2008, MEUR
The tables below show the status of funds managed by CapMan at the
end of 2008. When analysing the schedule for funds to start
generating carried interest, the relationship between distributed
cash flows to investors to 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 cash flow a fund needs in order 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 figure
in the last column on the right shows CapMan's share of cash flows if
the 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 however be returned to
investors before further carried interest income is paid. Of the
funds already generating carried interest, the CapMan Real Estate I
fund is still in the active investment phase, and the Finnventure V
fund can still make follow-on investments in its current portfolio
companies.
The definitions for column headings are presented below the tables.
FUNDS INVESTING DIRECTLY IN PORTFOLIO COMPANIES
Size Paid- Fund's Net Distributed CapMan's
in current cash cash flow share
capital portfolio as- to in- to man- of
at at sets vestors agement cash
cost fair company flow
value (carried if fund
interest) gene-
rates
carried
interest
Funds
generating
carried
interest
FV II,
FV III 1)
and
FM II B
in total 58.6 57.4 3.1 0.1 0.2 180.1 44.2 20-35%
FV V 169.9 164.0 48.5 23.5 1.1 237.7 5.3 20%
Fenno
Program
in total
2) 59.0 59.0 10.7 6.3 0.1 123.2 8.7 10-12%
Total 287.5 280.4 62.3 29.9 1.4 541.0 58.2
Funds
that
are
expected
to
transfer
to carry
during
2009-2010
CME VII A 156.7 135.9 84.7 117.7 3.6 92.4 20%
CME VII B 56.5 54.2 34.3 55.9 2.3 41.9 20%
CME SWE 67.0 58.1 36.2 50.4 1.5 39.8 20%
FM III A 101.4 98.8 32.1 31.9 2.9 103.1 20%
FM III B 20.2 19.8 8.4 10.0 0.4 18.6 20%
Total 401.8 366.8 195.7 265.9 10.7 295.8
Other
funds
not yet
in carry
CME VII C 23.1 16.7 9.5 7.1 0.4 7.0 20%
CMB VIII
1) 440.0 300.5 264.1 222.7 2.8 14%
CM LS IV 54.1 23.5 14.5 10.3 0.8 10%
CMT 2007
1) 142.3 40.3 32.7 30.0 0.9 10%
CMR 3) 118.1 21.1 16.8 16.8 0.0 n/a
CMPM 106.0 1.3 0.0 0.0 0.2 10%
CMB IX 203.0 0.0 0.0 0.0 0.0 10%
FM III C 13.9 13.9 3.8 2.8 2.0 12.9 20%
CMM IV 4) 240.0 131.1 148.1 140.2 -38.2 28.8 15%
Total 1,340.5 548.4 489.5 429.9 -31.1 48.7
Funds
with
limited
carried
interest
potential
to CapMan
FV IV,
FV V ET,
SWE LS 3),
SWE Tech
1), 5)
and
FM II A,
C, D 1)
Total 277.7 262.1 78.5 50.8 3.6 174.7
Funds that
invest in
portfolio
companies
total 2,307.5 1,457.7 826.0 776.5 -15.4 1,060.2 58.2
REAL ESTATE FUNDS
Invest- Paid- Fund's Net Distributed CapMan's
ment in current cash cash flow share
capa capital portfolio as- to in- to man- of
city at at sets vestors agement cash
cost fair company flow
value (carried if fund
interest) gene-
rates
carried
interest
Funds
generating
carried
interest
CMRE I 6)
equity
and
bonds 200.0 165.0 44.4 46.2 187.1 27.4 26%
debt
financing 300.0 252.1 102.1 102.1
Total 500.0 417.1 146.5 148.3 -1.3 187.1 27.4
Other funds
not yet
in carry
CMRE II
equity 150.0 68.1 72.7 72.9 0.5 12%
debt
financing 450.0 199.4 198.2 198.2
Total 600.0 267.5 270.9 271.1 -7.0 0.5
CMHRE 7)
equity 304.9 269.1 268.3 249.9 10.8 12%
debt
financing 540.0 526.0 544.8 544.8
Total 844.9 795.1 813.1 794.7 4.5 10.8
Real estate
funds total 1,944.9 1,479.7 1,230.5 1,214.1 -3.8 198.4 27.4
All funds,
total 4,252.4 2,937.4 2,056.5 1,990.6 -19.2 1,258.6 85.6
Abbreviations used to refer to funds:
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 SWE LS = Swedestart Life Science
CMPM = CapMan Public Market Fund SWE Tech = Swedestart Tech
CMR = CapMan Russia Fund
Size / investment capacity:
Total capital committed to the fund by investors, i.e. the original
size of the fund. For real estate funds, investment capacity also
includes the share of debt financing used by the fund.
Capital under management by Access Capital Partners is presented
separately in Appendix 3.
Paid-in capital:
Total capital paid into the fund by investors at the end of the
review period.
Fair value of fund's current portfolio:
The funds' investments in portfolio companies are valued at fair
value in accordance with the International Private Equity and Venture
Capital Valuation Guidelines (IPEVG) and investments in real estate
assets are valued in accordance with the value appraisements of
external experts.
The 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, the funds' 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. In defining the fair
value of portfolio companies, investment targets are valued at
acquisition cost from the time of investment for a 12-month period,
after which they are valued at fair value. According to the IPEVG's
policy of prudence, technology and life science targets are typically
valued at acquisition cost or a lower figure up until exit.
Net cash assets:
When calculating the investors' share, the fund's net cash assets
must be taken into account in addition to the portfolio at fair
value. Net cash assets in the CapMan Mezzanine IV fund may be
negative, due to a credit facility used in the fund. Real estate
funds' shares of debt financing are presented in separate rows in the
table.
CapMan's share of cash flow if the fund generates carried interest:
When a fund has produced for investors the cumulative preferential
return specified in the fund agreements, the management company is
entitled to an agreed share of future cash flows from the fund
(carried interest). Cash flow, in this context, includes both profit
distributed by the 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 however be returned to
investors before the new distribution of profits can be paid.
Footnotes to table
1) The fund is comprised of two or more legal entities (parallel
funds are presented separately only if their investment focuses or
portfolios differ significantly).
2) The Fenno Rahasto, Skandia I and Skandia II funds together
comprise the Fenno Program, which is managed jointly with Fenno
Management Oy.
3) The CapMan Russia fund was transferred under CapMan's management
on 27 August 2008 on completion of the Norum acquisition. CapMan
Plc's share of carried interest will depend on the final size of the
fund and will be announced in conjunction with notification of the
final fund size.
4) CapMan Mezzanine IV: The paid-in commitment includes a MEUR 96
bond issued by Leverator Plc. The fund's net cash assets include a
loan facility, with which investments are financed up to the next
bond issue. Distributed cash flow includes payments to both bond
subscribers and to the fund's partners.
5) Currency items are valued at the average exchange rates quoted on
31 December 2008.
6) CapMan Real Estate I: Distributed cash flow includes repayment of
the bonds and cash flow to the fund's partners.
7) CapMan Hotels RE: The portfolio has been financed with a MEUR 26.2
short-term loan in addition to a senior loan of MEUR 526.
APPENDIX 2: OPERATIONS OF CAPMAN'S FUNDS UNDER MANAGEMENT, 1 JANUARY
- 31 DECEMBER 2008
The operations of private equity funds managed by CapMan in the
review period comprised direct investments in portfolio companies
mainly in the Nordic countries and Russia (CapMan Private Equity) as
well as real estate investments mainly in Finland (CapMan Real
Estate). The investment activities of funds making direct investments
in portfolio companies include mid-sized buyout investments in
manufacturing industry and the service and retail sectors, technology
investments in growth stage and later growth stage technology
companies, life science investments in companies specialising in
medical technology and healthcare services, investments in mid-size
companies operating in Russia, and investments in significant
minority stakes in listed mid-cap companies.
CAPMAN PRIVATE EQUITY
Investments in portfolio companies in 2008
In 2008 the CapMan funds made eight new investments as well as
several follow-on investments worth altogether MEUR 232.6. The new
investment targets were Barnebygg Gruppen, CargoPartner Group,
Cederroth International AB, The New Black Oy (Varesvuo Partners Oy),Accanto Systems Oy (formerly LTE Innovations Oy), Crayon Group,
Region Avia Airlines and Russia Baltic Pork Invest A/S. Follow-on
investments accounted for almost MEUR 100 of all investments made,
some of which were to support the liquidity of the portfolio
companies in the difficult market situation. The largest follow-on
investments were in Tokmanni Oy, Walki Group, Curato A/S and OneMed
Group. In 2007 the funds made 11 new investments as well as follow-on
investments amounting to MEUR 164.7.
Exits from portfolio companies in 2008
The CapMan funds made final exits in 2008 from 6 companies:
Staffpoint Oy, Reima Holding, Animex AB, Solid Information Technology
Oy, Spintop Netsolution AB, and ProstaLund AB. The CapMan Equity VII
fund's portfolio company LUMENE Group split into the LUMENE Group and
Farmos Oy, which returned some of the original investment to
investors in the fund. Final and partial exits at acquisition cost by
the funds during 2008 totalled MEUR 39.4. In 2007 the funds exited
finally from nine companies and partially from several others. The
exits at acquisition cost during 2007, including repayments of
mezzanine loans, amounted to MEUR 93.2.
Other events in 2008
In December an investment in the Danish technology company Danfysik
ACP A/S was announced. The closing of the transaction is uncertain
due to general uncertainty in markets.
CAPMAN REAL ESTATE
Investments in and commitments to real estate acquisitions and
projects in 2008
In January 2008 the CapMan Hotels RE Ky fund acquired 39 hotel
properties for MEUR 805 from Northern European Properties Ltd in
conjunction with the establishment of the fund. Investments in retail
properties located at Yliopistonkatu 22 and Kristiinankatu 8 in Turku
were also finalised in January. In addition, investment commitments
made earlier were used during 2008 for financing the Skanssi
Kauppakeskus shopping mall project, for acquiring the Tokmanni
logistics centre and the Entresse Kauppakeskus shopping centre, and
for developing the CapMan Real Estate I's investment targets. A land
area situated in the Kivistö district of Vantaa was also purchased,
and a new commitment made for constructing a head office for OneMed
Oy in Helsinki.
In 2008 investments amounting to MEUR 1,070.4 were made, in addition
to which the funds had made commitments as at 31 December 2008 to
finance real estate acquisitions and projects over the next few years
amounting to MEUR 95.0. In 2007 a decision was made to invest in 16
new targets and the investments implemented totalled MEUR 160.0.
Commitments to financing new projects totalled MEUR 302.1 on 31
December 2007.
Exits from real estate investments in 2008
The funds did not exit from any real estate investments during 2008.
In 2007 the CapMan Real Estate I fund sold its portfolio of 22 office
properties to Samson Properties Ltd, The Royal Bank of Scotland (RBS)
and Ajanta Oy for MEUR 377.5.
FUND'S INVESTMENT ACTIVITIES IN FIGURES
Funds' investments and exits at acquisition cost, MEUR
1-12/2008 1-12/2007
New and follow-on investments
Funds investing in portfolio companies 232.6 164.7
Buyout 190.3 126.7
Technology 20.3 28.6
Life Science 5.2 9.4
Russia 16.8 -
Public Market - -
Real estate funds 1,070.4 160.0
Total 1,303.0 324.7
Exits*
Funds investing in portfolio companies 39.4 93.2
Buyout 20.9 74.1
Technology 14.6 19.1
Life Science 3.9 -
Russia - -
Public Market - -
Real estate funds - 304.4
Total 39.4 397.6
* Including partial exits and repayments of mezzanine loans.
In addition, the real estate funds had on 31 December 2008 made
commitments to finance real estate acquisitions and projects to the
amount of MEUR 95.
Funds' aggregate combined portfolio* as at 31 December 2008, MEUR
Portfolio at Portfolio Share of
acquisition at fair portfolio (fair
cost value value) %
Funds investing in portfolio 826.0 776.5 39.0
companies
Real estate funds 1,230.5 1,214.1 61.0
Total 2,056.5 1,990.6 100.0
Funds investing in portfolio
companies
Buyout 653.0 649.7 83.7
Technology 116.4 86.0 11.0
Life Science 39.8 24.0 3.1
Russia 16.8 16.8 2.2
Public Market - - -
Total 826.0 776.5 100.0
* Aggregated entity formed of all investment targets of funds under
management.
Remaining investment capacity
After deduction of actual and estimated expenses, on 31 December 2008
the funds that invest in portfolio companies had some MEUR 875
remaining for new and follow-on investments. Of the remaining
capital, some MEUR 478 earmarked for buyout investments (incl.
mezzanine investments), MEUR 153 for technology investments, MEUR 38
for life science investments, MEUR 100 for the CapMan Russia team's
investments and MEUR and MEUR 106 for the CapMan Public Market team's
investments. The real estate funds have remaining investment capacity
amounting to MEUR 320.
APPENDIX 3: CAPITAL UNDER MANAGEMENT OF ACCESS CAPITAL PARTNERS ON 31
DECEMBER 2008
CapMan Plc owns a 35% holding in the European company Access Capital
Partners, which manages funds of funds. At the end of 2008 Access had
capital under management of approx. EUR 2.5 billion. Further
information about the operations of Access Capital Partners is
available on the Internet: www.access-capital-partners.com.
Fund/mandates Size, MEUR
Access Capital Fund 1) 250.3
Access Capital Fund II Mid-market buy-out 1) 153.4
Access Capital Fund II Technology 1) 123.5
Access Capital Fund III Mid-market buy-out 1) 307.4
Access Capital Fund III Technology 1) 88.9
Access Capital Fund IV Growth buy-out 1) 425.0
Access Capital Fund IV High Growth Technology Europe 1) 35.0
Private Equity Mandates 1,162.0
Total 2,545.5
1) The fund is comprised of two or more legal entities (parallel
funds are presented separately only if their investment focuses or
portfolios differ significantly).
CapMan Plc Group's share of the carried interest from the Access
funds is: Access Capital Fund: 47.5%, Access Capital Fund II: 45%,
Access Capital Fund III: 25%, Access Capital Fund IV: 25%,
Access/Private Equity Mandates: 25%.
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