“With the current macro environment, I think we are going to see a slowdown in fundraising”

Leaders League. CapMan is a Nordic private assets management and investment company. Having a global network with Nordic roots, what differentiates your firm from others in the market? 

Louise Klintman. CapMan was established more than 30 years ago and being one of the first private equity firms in the Nordics, we have stayed true to our values as a local, Nordic private assets specialist. I believe we are the only asset manager doing just that. 

Our long experience in the local market has allowed us to build extensive networks and relationships on the ground which are unique to CapMan. We have investment professionals from different backgrounds, some come from financial roles whilst others have previously held more operational ones. These people are based across Nordic countries, and they bring with them vast experience and deep knowledge of their respective markets and sectors. 

Having a local approach and specialism also allows us to access deals other firms may not. For example, in many cases, we are approached directly by the sellers because they want to partner with someone who understands them on a cultural level, but also who speaks their language. By originating many deals on our own, we avoid competitive auctions which push prices up. 

As we have decades of experience in investing in the Nordic market, we understand it inside out, and there is really no other manager that has such a large network and feet-on-the-ground approach like CapMan. 

Local companies want to partner with us because they know we understand their culture and speak their language

How do you keep your team motivated and focused? How do you address diversity and inclusion in the workplace? 

We have a great team in place, headed by the Head of IR, Mari Simula, who is based in Helsinki. CapMan is a great company to work for. I believe that if you walk into any of our offices, everybody will tell you that. We have a culture that is unique, being highly professional with hard-working and intelligent people. We also have a friendly approach and there are no sharp elbows to be seen. 

When you manage to create a nice culture where people enjoy coming to work, motivation comes naturally. Perhaps it is our Nordic roots to thank, but we also have a flexible working policy that allows our employees to not only focus on their jobs, but also on their families. I think there is a large understanding within the company that we are not only employees, but we also have family and personal lives outside of work, and finding a balance between both is key to having motivated and happy employees. 

Going back to your question about diversity, our HR team leads these initiatives. It is something that we embrace within the company. Personally, I believe that people with different backgrounds come with different ideas, and this makes the best mix, so to say. With that being said, I am aware that it can be difficult to find a more diverse workforce. This is a challenge that we recognize as well as many companies in the market. I am hopeful that the more we go along, we will see more diversity, but this is obviously a work in progress. 

LPs will flock to more safe and secure environments, which is the case of the Nordics market that is so stable

In your opinion, what are some upcoming trends as it relates to the investment sector? 

I think that with the current market turmoil, global instability, and political uncertainty, the Nordic markets are attracting even more interest than before. We have stable and robust economies, and there is high transparency and ease of doing business. We have seen since the beginning of this year more interest from investors who previously thought of the Nordics as a small, niche market. The Nordics have close to 30 million people with some of the highest GDPs in the world, making it a highly attractive investment market.

With such large opportunities, a lot of foreign investors have their eyes on the region, and local players such as CapMan, are not the only investors in the market and this has obviously pushed prices up. However, given our local networks and feet-on-the-ground approach, we tend to find opportunities that others do not.

I think investors, in general, are more cautious given the macro environment and they have started to take a more selective and conservative approach, something a manager like CapMan can benefit from given our Nordic focus. Investors are also concerned about interest rates, increasing prices and inflation, and the geopolitical outlook. However, with a robust and conservative investment approach, I think investment managers can address those issues.

In general, we can also see that investors globally are slowing down their investment pace into private assets, both due to the denominator effect (allocations to private assets reaching top levels) but also due to increased risk sentiment related to the macro environment, something that will result in a slower pace of fundraising. With this slower pace, managers may hold on to assets for longer through continuation vehicles and we are likely to also see more secondary transactions as LPs seek liquidity.

What advice would you give to young professionals who wish to work in this sector? 

Personally, I believe this sector is super exciting. There are plenty of opportunities to explore and you can gain exposure to several industries. As in any industry, I would advise trying different roles and fields to learn as much as possible. I am a firm believer that you learn the most by practice and being “hands-on”. Thus, it is important to try different things when young. Different experiences lead to more knowledge at the end which will be beneficial long-term speaking. 

How are you enjoying the Private Equity Exchange so far and would you recommend it to other leading professionals? 

I am enjoying it! The panels are very interesting, and I am about to participate in yet another one this afternoon. I also came here last year so that shows my interest in the event and the subject matters discussed here. 

By: Rachael Martin