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CapMan Oyj B reported a strong third quarter for 2025, with assets under management reaching a record 7.1 billion euros, marking a 17% growth since the start of the year. The Helsinki-based investment company saw its stock price increase by 5.16% to 1.874 euros in pre-market trading, reflecting positive investor sentiment. Fee income grew by 6% year-over-year, and the company’s comparable EBIT was 19.1 million euros, a 46% increase from the previous year. The fair value uplift contributed an additional 12.4 million euros to the investment portfolio, which now totals 185 million euros.
Key Takeaways
- Assets under management hit a record 7.1 billion euros, growing 17% year-to-date.
- Stock surged by 5.16% in pre-market trading following the earnings release.
- Fee income increased by 6%, with a comparable EBIT rising by 46%.
- The Kairus acquisition added 640 million euros in assets.
- The company is targeting 10 billion euros in assets under management.
Company Performance
CapMan’s overall performance in Q3 2025 was robust, driven by strategic acquisitions and strong fundraising efforts. The acquisition of Kairus added 640 million euros to its assets, contributing to the company’s record-breaking asset management figures. The company’s focus on real assets, which comprise 80% of its portfolio, continues to be a key driver of growth. The firm also reported a fair value uplift of 6.9%, amounting to 12.4 million euros, reflecting improved asset valuations.
Financial Highlights
- Revenue: Not specified in the earnings call.
- Earnings per share: Not specified in the earnings call.
- Comparable EBIT: 19.1 million euros, up 46% year-over-year.
- Fair value uplift: 12.4 million euros, a 6.9% increase.
Market Reaction
CapMan’s stock price rose by 5.16% to 1.874 euros in pre-market trading, reflecting investor confidence in the company’s performance and future prospects. This movement places the stock closer to its 52-week high of 2.05 euros, indicating strong market sentiment.
Outlook & Guidance
Looking ahead, CapMan aims to grow its assets under management to 10 billion euros, with a long-term revenue growth target of 15% annually. The company is optimistic about the market’s recovery and anticipates fee profit growth. Several exit processes are underway, expected to conclude in the next 6 to 12 months, which could further enhance financial performance.
Executive Commentary
CEO Pia Kåll highlighted the company’s achievements, stating, "We are now at the record 7.1 billion euros." She also emphasized the diversity of the investor base, with 80% of new fundraising coming from first-time investors. Kåll expressed optimism about the market’s trajectory, noting, "We see these as early indications that the market is bottoming out and turning positive."
Risks and Challenges
- Economic uncertainty may impact fundraising efforts.
- Delays in the Nordic Real Estate IV Fund could affect future income.
- Market saturation in key regions could limit growth.
- Exchange rate fluctuations may impact financial results.
- Regulatory changes in the investment industry could pose challenges.
Q&A
During the earnings call, analysts inquired about the impact of the Kairus acquisition, the differences in fund strategies, and potential exit opportunities. The management team addressed these concerns, highlighting the acquisition’s positive contribution and the strategic focus on sustainability, as evidenced by improved GRESB ratings for several funds.
Full transcript - CapMan Oyj B (CAPMAN) Q3 2025:
Charlotte, Moderator/Presenter, CapMan: Good morning and welcome to this presentation of CapMan’s Q3 Report 2025. Presenting today, we have Pia Kåll, CEO of CapMan, and after the presentation, we will have a Q&A session where you are welcome to send in questions at any time using the chat in the webcast link. Pia, please, I hand over to you.
Pia Kåll, CEO, CapMan: Thank you, Charlotte, and welcome also from my side. CapMan had a strong third quarter, both financially and in executing on our growth strategy. At the end of the quarter, our assets under management are on a new record level at EUR 7.1 billion. It’s a 17% growth since the start of the year, coming both from some EUR 560 million of new capital that we have raised. Also the acquisition of Kairus, adding EUR 640 million of assets under management. Revenue is flat or on the same level as last year. During the first three quarters, we have not had exits that would have resulted in material carried interest, so that is lacking from the revenue. If we look at the fee income, it is growing 6% per year, 6% compared to last year.
Comparable EBIT, we are 46% above last year at EUR 19.1 million, the growth primarily driven by strong fair value development in our own fund investments. In our work, we’re continuing to execute on our vision to become the most responsible private asset company in the Nordics, with the investments we do building the society that we want to see in the future. If you take a snapshot of our portfolio, at the end of the third quarter, 80% of our assets under management are invested in real assets and the remaining part in private equity and wealth. Real estate, developing human-centric sustainable real estate across the Nordics, is an owner of 259 properties through their funds. Infrastructure, investing in energy, transportation, and the telecom sectors being part of the green transition, with at the moment 11 portfolio companies.
In natural capital, we’re investing in timberland, in biological growth, climate change mitigation, a portfolio of 240,000 hectares across eight European countries. Now also for the first time, real estate debt as part of our portfolio, where we offer tailored real estate debt solutions across the entire real estate lifecycle. At the moment in our portfolio, 210 properties. Within our specialized private equity strategies, supporting small, mid-sized unlisted companies in their growth and internationalization, at the moment 37 portfolio companies, a couple lower than at the end of the last quarter as we have had some successful exits in that area. We are a focused asset management house, with our main business being management of our funds across our investment areas and the value drivers there, fee profit from these funds and carried interest when we realize successful exits.
In addition, as a value driver, investment returns from our balance sheet investments that we focus primarily on investments into our own funds, also then supporting growth of that business. Looking at these key financials for the first nine months, fee profit at EUR 6.5 million is at the same level as last year. It is a strong development because this year we have not had any retroactive fees for final closings in funds, which we had last year, so underlying business scaling nicely. When it comes to the carried interest, no material exits during the first nine months that would have realized carry, therefore a very low number. However, in October, we already had some exits that will realize carry later and several in process that over the next 6-12 months should realize.
When it comes to investment returns, a fair value uplift of 6.9% for the first nine months or EUR 12.4 million, good development also compared to the last two years, and total fair value of our investments EUR 185 million at the end of the quarter. Taking a look then at fee income and fee profitability development, fee income growing 6% compared to last year. If we exclude the retroactive fees that we had last year but have not had this year, it is a double-digit growth that is in line with growth of our assets under management. Cost control has remained very good. Additions on the operational expense side are basically only the acquisition of Kairus and the organization that transferred with the Midstar transaction that we did earlier in the year.
As a result, then fee profit on the same level as last year, meaning that the underlying business is scaling and the relative profitability improving and on a track to further improve. When we then look at our balance sheet and our investments there, at the moment we have private asset investments of EUR 185 million in total, EUR 50 million of remaining commitments into funds. It is a well-diversified portfolio, and we have during this year used our balance sheet to support growth. There has been a solid, steady investment base across our investment areas, deploying capital, and we also used our balance sheet to enable the Midstar transaction by providing an equity bridge from our balance sheet. Using it in line with our strategy to support growth.
has also been a good fair value development in the balance sheet throughout the year, but it has not materialized yet into significant exits. That means that where we stand at the moment is that we have a net negative cash flow in our investment operations, but the value developed in the portfolio is not lost. When the exits materialize and also when the exit market again reactivates, we expect this to reverse and see a strong positive cash flow from the balance sheet. The value of external funds continued to decrease. That is in line with our strategy, and we have sold off some of our stakes in external funds both at the beginning of this year or end of last year and also now in the third quarter. As said, strong fair value development. For the first nine months, 6.9% uplift in fair value or EUR 12.4 million.
Primarily that is driven again by our own funds across investment areas, contributing EUR 11 million or almost 8%, and external funds EUR 1.4 million or 3.5%. Already now, with nine months in, we are on a higher level in fair value development than we were a full year in the last two years. As we then look at our EBIT component compound, we can see that we are at EUR 19.1 million, 46% above last year, and the main driver so far this year being these positive fair value changes. On the balance sheet side, we maintain a solid, strong balance sheet with good liquidity. Equity ratio at 59%, and we have cash and other short-term financial assets of EUR 54 million. This financial stability and strong liquidity enables us to continue to systematically execute on our growth strategy, also in a more uncertain market.
In practice, what it means is that we can use our liquidity to support growth in our asset management business, decrease interest-bearing debt, and that way deliver strong shareholder value creation. If we then move on to more of our strategy execution, starting with a look on what’s happening in the overall market. If we look at where we are now, where the market sentiment right now, we’d say that the economic and geopolitical uncertainty that spiked around April when we had the U.S. tariff announcement, that has somewhat now slowed down or diminished, and we have a more stable environment. We see it as transaction activity is again resuming. It’s picking up. It’s still on low levels, but it’s higher than it was a year ago.
We also see some indications from market statistics that the fundraising times, median times, would start to shorten compared to the very long times that we’ve seen in the market the last two years. I see these as early indications that the market is bottoming out and turning positive. For 2025, it will still mean that this will be the fourth consecutive year when we have in a market less new capital raised into the industry. On the other hand, if we look at it in the bigger picture, it is a growth market. Even with lower new capital raised certain years, the assets under management in the overall private asset market is continuing to grow. If we take a slightly longer midterm, long-term view, it is a growth market with a solid 7-8% annual growth.
We continue to implement our growth strategy and our CapMan Wins strategic programs with the objective to reach EUR 10 billion of assets under management and working across our winning theme, investors’ choice, nimble operations, and sustainable programs. Looking at the assets under management development and our target, we are now at the record EUR 7.1 billion. So far, year to date, it’s been the acquisition of Kairus, establishing real asset debt as a new investment area that has contributed EUR 640 million. We’ve also taken in good new capital into our open-ended real estate funds and also on the wealth side. There are several fundraisings ongoing, actually across all of our investment areas at the moment, ongoing or being planned. In natural capital, our Forest Fund 4, we started the fundraising earlier this year, and we expect to hold the first close in the fund still during this year.
When it comes to real estate, what we see is more investor appetite for our open-ended funds at the moment, hotels, social real estate, residential, where we’ve already taken in a total during the years of EUR 500 million of new capital and also expect more capital inflow there. What it then means with more interest there is that we are moving the target for the Nordic Real Estate IV Fund first closing into 2026. Within real asset debt with Kairus, we have now jointly kicked off the fundraising for their eighth fund. Early stage is there, but the joint work is progressing well. We have also started planning for the Nordic Infrastructure III Fund. That is something that we’ll start fundraising at the moment. The plan is sometime during 2026.
In addition, at the moment on our private equity side, we have Nest 4, so our credit fund and Special Situations II in fundraisings. Also, several of our wealth products taking in capital. It is an active agenda both for the rest of this year and also throughout next year. We continue to see strong appetite for our products, especially among international institutional investors. Total new capital intake during the year EUR 1.1 billion so far, EUR 640 million from that from Kairus, EUR 560 million that we have raised. When we look at the split, we are currently with roughly 50, a bit more than 50, 53% coming from outside of the Nordics.
There we have seen strong growth in the DACH region or Central European region during the year, but also in the Nordic side, especially with the Midstar transaction, good new investors coming in from the Nordic countries, especially Sweden. If we double-click on the new capital raised into our funds, it is actually quite evident that what we have been successful with this year is attracting new investors to CapMan funds. 80% of the fundraising has been investors who have not before invested with us. It shows that our products are competitive and attractive for institutional investors. The cross-selling and re-up and top-up to our funds, re-ups at the moment 12% for the first nine months. That is basically top-ups to our open-ended funds. Investors who already are in our open-ended funds increasing their commitments to those same funds.
We haven’t had any large closings in closed-end funds, which is the reason why the re-up rate is low, because there hasn’t even been that possibility so far this year. Very happy to see these new investors join us and a large share of those that sets a good basis going forward. When it comes to the investment activity in our funds, it’s been solid on the new investment side throughout the year. In total, we made eight new investments since the start of the year. Six of those have gone into our real estate funds. The market is attractive at the moment to make real estate investments, and we are capturing that opportunity. In addition, Special Situations and Nest being active on the new investment side. When it comes to exits, it’s really only in the third quarter that we’ve seen exits materialize.
Two exits from our Buyout Fund, one from Growth 2, and a portfolio of Portuguese forest that was exited from the Dasos 2 Fund. Also in October already, we have announced two exits from the real estate side, very successful ones. Both from Nordic Real Estate III and then the Kokoelmakeskus Fund exiting their logistics center, also taking that fund into carry with that exit. On the exit side, it has been a more challenging market, but there are several projects ongoing and processes ongoing at the moment. Going forward, the next 6-12 months, we should have more exits realizing. We continue our systematic sustainability work across our main themes and combining the sustainability work with our financial value creation plans. A testament for that the work is successful and is also recognized is the annual GRESB international benchmarks specifically for real estate and infrastructure funds.
All of our funds improved their scores and their asset level scores in this year’s benchmark. We now have four of the real estate funds having the full five-star rating, so an improvement from last year, and also our second infrastructure fund having a full five-star. Our infrastructure one fund also improved their scores, but the bar to reach five stars is actually going up year on year. This year we were just below that bar and got four stars, but it is still a strong development in the underlying assets. Our long-term financial objectives unchanged. We target a growth of 15% per year on average in revenue. This year 6%, but looking at a slightly longer period, a solid double-digit growth. Return on equity at the moment somewhat below our target, but the equity ratio clearly above at 59%.
When it comes to our distribution policy to pay sustainable distributions that grow over time, what it means in practice is the objective to distribute at least 70% of the group’s profit. Without fair value changes, so basically meaning the fee profit and the carry. Then when we have strong positive cash flowing on our investment operations and we deem that we have excess cash, also distributing that to our shareholders. For this year’s outlook, we keep it unchanged. Our estimate is that assets under management will grow compared to last year and also fee profit will grow compared to last year. Thank you. Let’s open up for Q&A. Thank you, Pia. We also welcome Atte Rissanen to the stage, CFO of CapMan. Let’s start with questions from the audience here in the room, please. Hi, good morning, Salvi there. I’m in there, sorry.
About the Kokoelmakeskus UDT exit. Last week, I think. Can you give us a magnitude of the carry there? We will see it in the fourth quarter figures. Yeah, exactly. Okay. About this CVS, I think you said programs, not program. Can you elaborate a bit more on that since I guess at this stage you have only done the CVS, the one, two, three, four program? Yeah, on the wealth side. Obviously, wealth has several different products. Yes, we have the Investment Partners program where we raised the fourth fund and soon go into raising the fifth fund. Actually, wealth has developed new products also during the year on the credit side, both open-ended and closed-ended programs. Still kind of in the initial phase, but also those are fundraising, so broadening their product scope. Good morning, Jaakko Turvainen from SEB.
On Kairus and the level of AUM around EUR 600 million right now, could you elaborate a bit more. What is the Kairus impact on the fee profit side? I know that you provide some high-level numbers for us, but just to understand the fee profit going forward and how is the fundraising progressing and what has been the investor take-up in the Nordics regarding this new, or you expanding your portfolio offering? Yeah, you can take the fee profit. I can take the fee profit. So we’ve provided some details in connection with the preliminary purchase price allocation calculation, and there we state that the fee income during Q3, or basically now the first two months that Kairus has been with us, is EUR 0.6 million, and the fee profit impact is EUR 0.1 million. Good, thanks. I can take on the fundraising side.
The fundraising is really in the early stages. As always, starting first with your existing LPs and their kind of re-ups. There, what we see from the investor side is reactivating interest. It has been tough on the real estate side, as we all know, but now we see several investors who are indicating that they will deploy during next year and good discussions there. Only starting up the discussions with the broader CapMan network. Good, thanks. On the forest fund, next forest fund, which is targeting closing by the year. Are you planning or expecting the final fund size to be above its predecessor? That is the target, yes. Not yet that first closing, but that is a final closed size of the fund, definitely. The IPO window finally has opened also here in Finland. Also.
Assets on the real estate side are perhaps moving a bit more actively. Any outlook commentary or expectations on carry for Q4 and perhaps looking at 2026? Like I said, for Q4, Kokoelmakeskus already realized and that fund went into carry, but then looking into 2026, there are across different funds several exit processes ongoing. It is a bit early to say exactly when they will realize and which of the funds that will ultimately move into also realizing carry, but over the next 12 months, yes, expect exits that will generate carry. Good, thank you. Hi, it is Patrick Kambol from Nordea. Just a few questions. First, starting off. Going to fundraising. Why are investors preferring to invest in open-ended funds as opposed to the new closed-end funds? It is different strategies with different return expectations.
Specifically in our real estate side, where in the open-ended side that are targeted to institutional investors, it’s stable income strategies, also very specialized. Specifically residential, social real estate, and hotels. With a then lower, but also lower return, but also lower risk level, which several investors at the moment see that this is a good time to enter those specific segments in these type of assets. Our Nordic Real Estate 4 fund is a value-add fund, so higher return, higher risk, in other words, a different investment strategy. Right now there’s been more interest towards these specialized strategies. All right, thank you. Just going back to exits. In H2 you had quite a few exits if you look at the comparison to H1. What are you kind of seeing in the market? What has changed?
Is it a function of price or multiple expansion or just less uncertainty in the market? I would say it’s now specifically in Q3, it was less uncertain in the market. I mean, they are normally quite long processes. Across the board, we saw there around the end of Q1, early Q2, basically more or less a freeze in the market, which just then delayed things. It started moving again and these realized now in Q3. That is the dynamic why they all ended up now quite close to each other. All right, thank you. Okay. We have no further questions. Thank you very much for this presentation. Thank you. We wish everyone a nice day. Thank you. Thank you.
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