mast image

Special Report

Impact investing

Sections

Concerns over exits at Ilmarinen-owned manager leads to 'unsatisfactory' results

Related images

  • Concerns over exits at Ilmarinen-owned manager leads to 'unsatisfactory' results

Related Categories

EUROPE - CapMan Oyj, the €3bn listed private equity fund manager part-owned by five pension funds, has blamed a challenging fundraising environment and concern over the timing of exits for "unsatisfactory" half-year results.

In a presentation to investors, chief financial officer Niko Haavisto pointed to a record number of private equity funds targeting "increasingly selective" investors - including insurers deterred from investing in private equity by The European Union's Solvency II directive.

Pension insurer Ilmarinen owns 9% of the Finnish firm - and controls 5% of shareholder votes. Other major shareholders include pension insurers Varma and Valtion Eläkerahasto, the Finnish state pension fund, as well as Swedish pension buffer fund AP7.

Chief executive Lennart Simonsen said full-year results would "mainly depend on whether funds already generating carried interest are able to conduct new exits, whether new funds will transfer to carry, and on how the value of investments develops in funds where CapMan is a substantial investor".

The firm, which invests in non-listed companies in the Nordics and Russia, said a "challenging" fundraising environment meant it would rely on as yet non-existent funds reaching sufficient size to cover operating expenses.

CapMan typically charges investors in its funds an annual management fee of between 0.5—2.5% based on realised exits during the investment period and thereafter the value of the invested portfolio.

Yet despite difficulties raising capital, Simonsen predicted CapMan would be able to complete first-round fundraising for its Buyout X, Nordic Real Estate, and Russia II funds, which have a combined target size of €700m, by the end of the year.

Moreover, across the market exit values increased 60% in the second quarter over the first. "A stronger exit market will boost capital repayments to investors and enhance their ability to make new commitments to private equity funds," said Simonsen.

 
 

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<