CapMan Plc
Stock Exchange Release / Q1 Interim Report
9 May 2025 at 8:00 a.m. EEST
CapMan Plc 1-3 2025 Interim Report
Results for continuing operations and significant events in 1-3 2025:
CapMan has classified CaPS business as a discontinued operation in the income statement and restated the comparison periods' figures accordingly.
- Assets under management EUR 6.4 billion 31 March 2025 (EUR 6.1 billion 31 December 2024)
- Group revenue was MEUR 13.0 1 January-31 March 2025 (MEUR 15.6 1 January-31 March 2024)
- Fee income was MEUR 13.0 (MEUR 12.0)
- Carried interest was MEUR -0.0 (MEUR 3.5)
- Operating profit was MEUR 6.9 (MEUR 5.6) and comparable operating profit was MEUR 7.2 (MEUR 6.9)
- Fee profit was MEUR 1.5 (MEUR 1.0)
- Fee profit before group costs was MEUR 2.2 (MEUR 1.9)
- Diluted earnings per share were 2.3 cents (0.8 cents) and comparable diluted earnings per share were 2.5 cents (1.5 cents)
- In March, CapMan Real Estate fund CapMan Hotels II closed the acquisition of Midstar Fastigheter AB's hotel portfolio, growing CapMan's assets under management by EUR 0.4 billion
This stock exchange release is a summary of CapMan Plc's Interim Report for the period 1 January-31 March 2025. The complete report is available in pdf-format as an attachment to this release and on the company's website at https://capman.com/shareholders/result-reports/.
CEO's comment:
CapMan has had an excellent start to the year. Fee income grew 8% and continued scale benefits supported a fee profit growth of 46%. At the end of March, we closed one of the largest transactions of its kind, as CapMan Hotels II fund acquired Midstar Fastigheter AB's hotel portfolio. The transaction doubled the size of the fund and grew CapMan's assets under management with EUR 400 million. CapMan's total assets under management at the end of the first quarter stood at EUR 6.4 billion, an increase of 6% from the beginning of the year.
In our Capital Markets Day on 11 March 2025, we re-iterated our growth objective to reach EUR 10 billion assets under management during the strategy period. With the structural moves we have completed, including the establishment of Natural Capital, strong organic growth of Infra and Real Estate, and divestment of service businesses, CapMan is positioned for profitable growth.
The increased geopolitical turmoil and tariffs have limited direct impact on CapMan's fee generating business, which is based on fee income from long-term predictable agreements. However, the increased uncertainty is likely to prolong fundraising processes.
The year has started with strong activity
Real Estate has completed several transactions with Nordic Real Estate III fund making two new investments and the Hotels II fund's transformative acquisition of Midstar Fastigheter. The Midstar portfolio consists of 28 hotel properties, making the fund a leading private Nordic hotel platform. The properties are located in major metropolitan areas such as Copenhagen, Stockholm, Gothenburg, and Oslo in addition to regional hotels in prime locations.
CapMan's DNA of active value creation is a strategic advantage especially in turbulent economic times. By working closely with our assets, we actively enhance value, adopt to changing external requirements and work to future-proof the assets. During the first quarter several refurbishment projects have been announced within Real Estate and for the Midstar portfolio, value creation work has already started, aiming to reduce operating expenses and emissions, and create positive social impact.
Within private equity we increased the share of portfolio companies with Science-Based Target emission reduction plans in place to 17%, as Hydroware and Netox had their targets validated.
Fundraising in flagship funds ongoing
CapMan Wealth's annual Investment Partners program held its final close for the fourth fund in March, at a record USD 120 million. Since the inception in 2021 the program has raised in total some USD 330 million.
Fundraising for the flagship funds Nordic Real Estate IV and European Forest Fund IV are ongoing, and both funds are seeking to significantly increase fund size compared to earlier vintages. Investor response to both funds is positive, but with the increased geopolitical uncertainty investors are postponing decision making, which pushes the target for first closes to the latter part of the year. Market turmoil also creates opportunities. CapMan has a strong balance sheet and strong solidity, and in addition to scaling existing products, we continue to explore growth by introducing new products, as well as, evaluating selected acquisitions.
Pia Kåll
CEO, CapMan Plc
Key figures
| MEUR | 1-3/25 | 1-3/24 restated |
| Continuing operations: | ||
| Operating profit | 6.9 | 5.6 |
| Items impacting comparability | 0.3 | 1.3 |
| Comparable operating profit | 7.2 | 6.9 |
| Result for the period | 4.9 | 3.6 |
| Items impacting comparability | 0.3 | 1.2 |
| Comparable result for the period | 5.1 | 4.8 |
| Earnings per share, cents | 2.3 | 0.8 |
| Items impacting comparability, cents | 0.2 | 0.7 |
| Comparable earnings per share, cents | 2.5 | 1.5 |
| Earnings per share, diluted, cents | 2.3 | 0.8 |
| Items impacting comparability, cents | 0.2 | 0.7 |
| Comparable earnings per share, diluted, cents | 2.5 | 1.5 |
| % | 31 Mar 25 | 31 Mar 24 restated |
| Return on equity, % p.a. | 9.8 | 15.3 |
| Return on equity from continuing operations, comparable, % p.a. | 10.4 | 15.0 |
| Equity ratio, % | 57.4 | 50.1 |
Long-term financial objectives
CapMan's distribution policy is to pay sustainable distributions that grow over time. CapMan's objective is to distribute at least 70% of the Group's profit attributable to equity holders of the company excluding the impact of fair value changes, subject to the distributable funds of the parent company. In addition, CapMan may pay out distributions accrued from investment operations, taking into consideration foreseen cash requirements for future investments.
The revenue growth target excluding carried interest income is more than 15% p.a. on average. The target for return on equity is more than 20% and for equity ratio more than 50%.
CapMan expects to achieve these financial targets gradually and key figures are expected to show fluctuations on an annual basis considering the nature of the business.
Outlook estimate for 2025
CapMan's objective is to improve results in the long term, taking into consideration annual fluctuations related to the nature of the business. Carried interest income from funds managed by CapMan and the return on CapMan's investments have a substantial impact on CapMan's overall result. In addition to asset-specific development and exits from assets, various factors outside of the portfolio's and CapMan's control influence fair value development of CapMan's overall investments, as well as the magnitude and timing of carried interest. For these reasons, CapMan does not provide numeric estimates for 2025.
CapMan estimates assets under management to grow in 2025. The company estimates fee profit also to grow in 2025. These estimations do not include possible items affecting comparability.
Result webcast today at 9:30 a.m. EEST
CapMan's management will present the result for the review period in a webcast to be held at 9:30 a.m. EEST. Please access the webcast at https://capman.events.inderes.com/q1-2025. The conference will be held in English. A replay of the webcast will be available on the company's website after the event.
CAPMAN PLC
Board of Directors
Contact details:
Atte Rissanen, CFO, CapMan Plc, tel. +358 50 040 5732
Distribution:
Nasdaq Helsinki Ltd
Principal media
www.capman.com
Appendix: CapMan Plc 1-3 2025 Interim Report
About CapMan
CapMan is a leading Nordic private asset expert with an active approach to value creation and €6.4 billion in assets under management. As one of the private equity pioneers in the Nordics we have developed hundreds of companies and assets creating significant value for over three decades. Our objective is to provide attractive returns and innovative solutions to investors by enabling change across our portfolio companies. An example of this is greenhouse gas reduction targets that we have set under the Science Based Targets initiative in line with the 1.5°C scenario and our commitment to net-zero GHG emissions by 2040. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover real estate and infrastructure assets, natural capital and minority and majority investments in portfolio companies. We also provide wealth management solutions. Altogether, CapMan employs around 200 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001. www.capman.com
