CapMan closes €240m hybrid mezz fund

Having tapped both equity and fixed interest investors, the Helsinki-based private equity firm has announced the final close of its latest mezzanine fund.

Finnish private equity house CapMan has closed its fourth dedicated mezzanine vehicle, CapMan Mezzanine IV, on €240 million ($310 million).

The fund will seek to make mezzanine investments in Northern European mid-market companies in the manufacturing, retail and service industries with net sales of between €50 million and €500 million.

The fund is made up of 33 institutional investors. For the first time, the investor base includes Western European as well as Nordic investors, according to a press release. CapMan’s own commitment to the fund totalled €7 million.

The fund has to date invested in Finnish companies discount store chain Tokmanni and Metso Drives, a mechanical equipment manufacturer that makes products including wind turbine gears.

Part of CapMan Mezzanine IV is securitised, allowing investors to participate in the fund by subscribing to listed asset-backed bonds issued by Finnish special purpose vehicle Leverator plc.

Leverator is providing a loan facility to the fund managed by CapMan’s Guernsey subsidiary. CapMan CEO Ari Tolpannen previously described the fund structure as “offering more flexibility to investors, who can choose to invest in listed bonds, limited partnership interests or a combination of these”.

CapMan manages and advises Nordic funds with approximately €1.4 billion in committed capital. The firm also has offices in Stockholm, Copenhagen and Oslo. B-shares in CapMan plc are listed on the main Helsinki Stock Exchange.