CapMan raises €97m for Russia II fund

CapMan started marketing the fund in early 2012. The vehicle has a ten year lifespan as well as standard management fees and carry.

CapMan's Moscow-based team has been investing in Russian SMEs since 1996.

Total commitments for the 2008 vintage CapMan Russia (CMR I) fund were €118m. The previous fund is fully invested with a diversified portfolio, having invested in rapidly growing, consumer-focused businesses such as healthcare, fast food, telecoms, digital photo services and retail, as well as in some high-tech businesses.

Investors
In addition to CapMan Plc and the CapMan Russia investment team, 10 investors have made commitments to the fund to date, with a mix of financial investors, mainly institutional but also some family investors.

The typical investment size from each investor stands at €10-15m. LPs are hailing from continental Europe, the Nordics and the US.

CapMan's and the team's share of the commitments is €3m, which is close to 3% of overall contributions so far.

In addition to commitments received as part of this first closing, the CapMan Russia II fund has received a further commitment from the European Bank for Reconstruction and Development (EBRD) of approximately €20m. The total EBRD commitment is capped at 30% of the fund size and subject to certain other conditions.

Investments
CMR II will follow the same investment strategy as CMR I,  investing in fast-growing Russian SME's.

The fund seeks to capitalise on the continued development of Russian SMEs through investments in fast-growing sectors and in the growth regions beyond Moscow and St Petersburg.

CapMan sees attractive opportunities in Russian high-value business services such as the consumer goods sector, healthcare, e-commerce and payment systems.

Russia II will invest €8-20 per transaction. Even though the investment period is five years, the investment period might end earlier based on the number of attractive opportunities in the market, the fund manager told unquote".

The number of investments is expected to eventually reach 10-14, equating to 3-4 deals per year.

There are seven target companies in the pipeline, with discussions at an advanced stage for three of these.

People
Hans Christian Dall Nygård is a senior partner at CapMan and head of CapMan Russia. Jerome Bouix is a senior partner and head of business development and investor relations at CapMan.

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