CapMan has itself committed €15m to the fund. It has decided that 50% of CapMan Technology 2007’s possible carried interest will be distributed to the members of the investment team responsible for the fund’s investment activities during its life cycle.
A successful fund will typically start to generate carried interest at the end of its 10-year life cycle, provided that investors have regained their investment and an 8% preferred annual return.
CapMan has made technology investments since 1995 and current portfolio companies include Finnish provider of software testing and development Flander Oy, Swedish provider of radio network solutions Avitec AB, Norwegian provider of vehicle fleet management systems Locus AS, and Danish developer of electronic document management systems ScanJour A/S, among others.
“CapMan Technology 2007 will continue the path that has been paved by our previous fund, and we will make 15–18 investments in the Nordic countries from the fund during the next few years,” says CapMan senior partner Petri Niemi, head of CapMan Technology.
Total capital under management by CapMan rises with the new fund to about €2.9bn. According to CapMan the establishment of the fund will not have a substantial impact on CapMan PLC’s result for 2007.