CapMan has Established a €86M Fund Focusing on Growth Investments
CapMan has established a EUR 86M growth investment fund that focuses on minority investments in unlisted companies with strong growth potential. The investors of the fund are, among others, successful entrepreneurs who want to support Finnish entrepreneurship in a new way. The investor demand for the fund has exceeded our expectations and the fund was clearly oversubscribed.
The successful fund raising demonstrates the investor appetite for active minority investments. CapMan Growth Equity team’s track record is strong, as demonstrated by strong value creation in eight portfolio companies and several successful exits. The newly established fund aims to invest MEUR 2-10 to the target company and develop it for 2-5 years together with the entrepreneur. Minority investing is a good option e.g. in a situation where there are ownership changes in the company or when the growth of the company can be accelerated by additional capital. Minority investing is targeted typically into companies that have passed the start-up phase.
In conjunction with the establishment of the fund CapMan sells its shares in six growth companies to the fund for MEUR 26.6 and makes a corresponding equity commitment into the fund. The sales price is based on the fair values of the investments and does not have a profit impact.
Juha Mikkola and Antti Kummu are two experienced private equity professionals who are responsible for the new fund’s investment activity. Mikkola has 25 years of experience in private equity. During his career he has helped to build dozens of successful companies. Kummu has extensive experience of both operative management and minority investments in growth stage and industrial companies. Kummu has previously acted as CFO of Touhula Varhaiskasvatus and as Director in Finnish Industry Investments.
“Minority investing is a new way to use external know-how to accelerate the growth of a company. We in the CapMan Growth Equity team closely co-operate with the entrepreneur and we also have support from a broad group of fund investors that possess unique know-how of developing and growing companies,” says CapMan Growth Equity team’s Managing Partner Juha Mikkola.
“Minority investing differs from traditional private equity investments as the entrepreneur maintains the majority ownership and decision-making power in the company, but still receives the know-how and financing from the investor that helps to grow the business further,” explains Antti Kummu, partner in CapMan Growth Equity team.
“I am very proud of our newly launched growth investment fund and of our Growth Equity team. We at CapMan create new products and investment strategies, which resonate with the market demand and meet the needs of our clientele in the best possible way,” says Joakim Frimodig, CEO of CapMan.
Source: CapMan press release