Capnova Equity Investors launches fund

01 February 2008

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Fund

Capnova Equity Investors GmbH is a 74% subsidiary of RRS Capital Strategies Services and a 26% subsidiary of Flick Privatstiftung. The fund was launched in November 2007 and expects a first close in January 2008 at a minimum of EUR60m, and a final closing end of March 2008 at EUR100m or more. The minimum subscription is EUR1m.

The fund has a lifespan of 10 years, with two possible extensions of one year each. The managers do not use any placing agents. Legal advice is provided by the Viennese law firm Schuppich Sporn & Winischhofer.Terms and conditions are described as industry standard. The management fee is 2%, handling 1%, with carried interest of 20% and catch-up mechanism.

Investors

Flick Privatstiftung, high-net-worth individuals, as well as institutional investors from banks, pension funds and insurances contribute to the fund, with Flick Privatstiftung acting as a cornerstone investor with 30% of the capital provided. The investors are based in Austria, Germany and Switzerland. The managers contribute with at least 3% to the fund.

Investments

The fund managers are in advanced talks for a first investment and expect to close the deal in the first quarter of 2008. Geographically, the fund will invest in Austria, Germany and Switzerland, and target cash-flow strong old economy Mid-Cap-companies, but also larger targets. The fund is planning to invest up to EUR100m, up to twice leveraged, but does not plan a minimum or maximum number of investments per year. The fund is seeking to acquire companies fully or majorities of them, but will also invest in minorities. The fund is open to co-invest with other partners. In the current financial climate, trade sales are the preferred exit, but IPOs are not ruled out.

People

Stephan Zochling of RSS Capital Strategies Services is the main manager of the fund and will be joined by four more investment professionals, with two senior partners, and three execution officers. Stephan Zochling founded Lead Equities Private Equities in 2001, which generated a rate of return of 80%.

Name

Capnova Equity Investors

Target

EUR100m

Focus

Old economy

Contact

Stephan Zochling

Address

Rotenturmstr. 16-18

1010 Vienna

Austria