Capman celebrates restaurant sale

Finnish buyout champion Capman has realised its investment in Royal-Rest Oy, Finland’s largest private restaurant corporation. Royal-Rest Oy will become a wholly owned subsidiary of MK-Rest Oy. Scandic hotels has also sold its shares in the group. Details of the transaction have not been disclosed, but the exit has provided Capman with a profitable return.

Markus Sjöholm, partner at CapMan, said: “CapMan’s investment in Royal-Rest Oy has exceeded our initial return objectives and we are very pleased with the new ownership structure.”

Sjöholm said there were originally discussions about going for an IPO, but the group was considered too small and the climate for IPOs too risky. However, the Nordic region is witnessing a slow recovery of the IPO market. While Doughty Hanson was forced to postpone its IPO of Danish wind turbine blades manufacturer LM Glasfiber, Industri Kapital is celebrating a much anticipated exit from Swedish heating equipment manufacturer, Alfa Laval.

Sjöholm said: “We haven’t seen that many IPOs, but this could lead to a slow recovery of the market.” The Royal-Rest exit is timely for Capman, currently fund raising for its seventh fund, CapMan Equity VII, which has reached its first close at €166 million. CapMan anticipates a final close by the end of June, but a final target for the fund has not been disclosed.