Finnish private equity group CapMan has closed its latest fund, CapMan Equity VII, below the initial target of E300m, making it the latest fund to suffer from adverse conditions in the private equity fundraising environment.
The fund, which closed at E253m on December 27, is the largest raised by the Finnish firm for direct portfolio investments. Two-thirds of the capital will be invested in mid-sized buyouts with the remainder dedicated to technology investments in IT and telecommunications. The firm will invest up to E30m of equity in buyouts and between E3m and E8m in early stage technology transactions.
Launched in late 2001, the fund held a first close in January on E166m in commitments. CapMan had planned to hold a final closing in June which was later put back to the end of the year. “In spite of the difficult fundraising environment this year, we have succeeded in raising the largest fund in the history of CapMan,” said Ari Tolppanen, CapMan CEO.
CapMan Equity VII is the first fund raised by the firm to target international investors. “We changed the structure of the fund from a standard Finnish limited partnership in order to enable foreign investors to participate,” said Jerome Bouix, head of investor relations at CapMan.
A total of 23 institutional investors committed to CapMan Equity VII with 58 per cent of the capital originating outside of Finland. Over 70 per cent of the capital is from Nordic pension funds and life insurance companies. Half of the capital was raised from previous investors in CapMan funds. CapMan has committed E16m to the fund.
To date, CapMan Equity VII has made several investments, including last month’s participation in the E270m buyout of Nordkalk, the Finnish limestone-based products producer. Other investments include a E34m investment in RGS90, the Danish waste management company and Tieturi, a Finnish provider of IT training. In addition the fund has also invested in three Swedish and Danish technology companies.
CapMan was advised by Finnish law firm Borenius & Kemppinen. The firm did not use a placement agent.