Capman Aktie

Good morning, and welcome to this presentation of CapMan's Q1 Interim Report 2026. Presenting today, we have Pia Kall, CEO of CapMan. And after presentation, we will have a Q&A session, and you are welcome to send in questions at any time using the chat in the webcast link. So please, Pia, hand over to you.

Thank you, Charlotte, and welcome also from my side. CapMan had a strong starter to the first quarter. Our fee profit growth accelerated almost 50% up year-over-year. It's a result of the business scaling. Fair values in our investments developed positively across the line despite the turbulent markets, and we have realized some excellent exits from our funds, which proved that value creation capabilities in our investments and also when those transactions close now in the second quarter, will generate cash flows to CapMan. Fundraising momentum is strong, and we expect further closings in our key fundraisings in the coming months. At the end of the first quarter, AUM at EUR 7.2 billion, flat from the start of the year, but a strong growth compared to last year, which also shows in revenue.

So revenue up 25%, EUR 16.3 million. That is primarily driven by growth in fee income. EBIT at EUR 6.1 million. Here, the drivers, good fee profit growth and fair value development. Our assets under management is from international institutional investors. Out of the EUR 7.2 billion, more than half from investors located outside of the Nordic region looking for attractive returns in our investments in this region.

During the quarter, AUM stable. The exits decreased AUM, and that was balanced out by some EUR 60 million of new capital that was raised. At the same time, the momentum in fundraising is very good, and we are making significant progress and expecting first closes in our key fundraisings over the coming months.

With the capital that we manage, we are seeking attractive returns for our investors, but we are also investing so that we are building the society of the future with the investments we choose to make and the value creation we make during our holding periods, we are building the society of the future.

And we are creating value across a broad range in the society in the Nordics. Our focus is on real assets and EUR 5.7 billion out of our EUR 7.2 billion is invested in real asset investments.

Real estate being the largest where we have properties across the Nordics. Infrastructure investing in energy, transportation and telecom sectors, supporting local asset owners in the Nordic region.

Natural capital, we have a large forest investment portfolio across Europe, 220,000 hectares of land, slightly down compared to last year because of some really excellent exits in the Baltics.

Real asset debt supporting real estate properties with debt across Europe, 210 properties in the portfolio. And in private equity and wealth, EUR 1.5 billion of AUM, supporting small, mid-sized companies in their growth journeys and internationalization journeys.

As a shareholder, the value drivers for CapMan to follow are really fee profit from our asset management business, so the profit from fee income from the funds, carried interest from the funds and then investment returns from our balance sheet investments, which are primarily invested into our own funds to support the growth of asset management.

These key financials for the first quarter, fee profit at EUR 2.2 million, 48% growth and growth accelerating compared to the development over the past 3 years as both top line is growing, but also the business is scaling.

No significant carried interest during the quarter, but with good exits realized, several funds are approaching carry and with consequent exits will realize. Investment returns, positive development. The total portfolio, 2% fair value uplift of EUR 3.6 million.

Our own funds developing stronger, so a 3.3% uplift and EUR 4.7 million fair value change. Looking more deeply at fee income and fee profitability development, we can see that fee income is growing 22%, compared to last year. This is growing in line with the AUM growth, the assets under management that we took in during last year.

Fee profit, on the other hand, grows significantly faster, 48% growth and also fee profit margin improving 2 percentage points to 14% in the first quarter. Here, we have 3 drivers behind this one. Of course, fee income growing drives also fee profit growth. Good cost control across the company.

If we look at our operating expenses, the main increases are really only from the large transactions last year, so the acquisition of CAERUS and then the Midstar acquisition into investment into our hotels fund and the organization that transferred with that.

And then as the third driver where we start to see improvement in profit margin is really active continuous work to build efficiency, scalable operations into our own ways of operating. Here, we already see some benefits from the efforts, but it's also good to note that the full effect from these improvements will really come through when we reach the final closes in the ongoing large fundraisings.

Looking at the balance sheet. Currently, portfolio of investments stands at EUR 180 million in fair values, well diversified. At the end of the quarter, EUR 56 million of remaining commitments into funds. It's a fairly low number and the number will go up when we make commitments into the funds that we are now raising and when they give their first closes.

During the first quarter, cash flow from investment operation was slightly negative, but we are expecting significant positive distributions now during the second quarter, then especially the exits from PDSVISION in the Buyout XI fund and then Valokuitunen from the Infra I fund when they are closing.

Over time, we are expecting that the investment portfolio is generating significant positive cash flow. As exits are realizing from the portfolio, those distributions are expected to be larger than the commitments we make into new funds and that way, generating positive cash flow for us. Looking at the fair value changes in the quarter, 2% on total uplift in the investment portfolio, own funds, EUR 4.7 million or about 3% fair value uplift, all investment areas contributing positively.

Our external fund investments, slightly negative and therefore, the total at 2%. Looking then at the composition of our EBIT, the largest contributors really strong fee profit growth, almost 50% growth and then good fair value changes despite a very turbulent market, taking us to a total comparable EBIT of EUR 6.1 million. We continue to maintain a very solid balance sheet, very strong liquidity, equity ratio above 55%, almost EUR 70 million of cash and other short-term financial assets, keeping a strong liquidity to be able to continue to support growth of our business and that way deliver strong shareholder value creation.

If we then look into our strategy implementation and starting with the market outlook at the moment, our chosen focus segment is really European real asset investments. And over time, this is a segment that is expected to show healthy double-digit annual growth.

It's also a good segment to be in the short and midterm, specifically for 2 reasons, it's real assets and it's Europe. With the current volatility in the equity markets driven by both geopolitics, Iran, the U.S. ongoing war, but also artificial intelligence and AI disrupting a lot of valuations and operating models for a lot of companies, we see that real assets, where we talk about physical assets like properties, infrastructure, forest are less impacted in the sense that they will not be replaced by AI.

They are also -- as there are investments into physical assets, the outcomes are more controllable than in many other segments. And this will continue to attract investors -- investors who look for diversification and who look for more stable, controllable outcomes in their portfolio.

Europe is also a good place to invest at the moment and is attracting capital. It's a long-term investment business, where investors are looking for geographies where you have stable economies, stable political environments. And here, Europe and especially Northern Europe and the Nordics are in a good position to attract capital from all regions globally at the moment.

So in this market, we continue to implement our growth strategy with the focus on real assets and Europe. Our stated objective to reach EUR 10 billion in assets under management by end of 2027 and driving our strategy through our 4 WINS programs.

When we look at the target for assets under management reaching EUR 10 billion, we are in a good position. Over the past 2 years, we've been growing assets under management on average 20% per year. We need to keep up that momentum. To reach our target, we need on average, a 16% per year growth. And we have several ongoing fundraisings across our investment areas that when they realize will take us to that target.

And taking a more detailed look investment area by investment area on the ongoing fundraisings. Within real estate, we have the Nordic Real Estate IV fundraising ongoing. Here, we now see strong momentum, and we expect a first close over the coming months. Target size of final close for this fund at EUR 750 million. In addition, our specialized open-ended funds in real estate are continuing to raise capital. This is our residential fund, Hotels II fund, Social Real Estate fund and several mandates.

During the last 3 years, we have, on average, taken in some EUR 300 million per year into these funds, and we see continued good appetite for these funds. Within infrastructure, we have now this year launched the fundraising for Nordic Infrastructure III fund, supported by an excellent exit from Valokuitunen earlier this quarter. And we are expecting to hold a first close in this fund also within the coming months.

Target size also at this fund, EUR 750 million when we reach final closing. Within natural capital, the European Forest Fund IV held its first close in December. The fund has also made its first investment already in the Finnish portfolio during April.

And here, we see continued appetite are expected to take in more capital also over the summer. Target size here at final closing above the previous fund, so about EUR 300 million. Within real estate debt, the CAERUS VIII fund fundraising continues. This is focused on real estate debt. And -- in addition, during the first quarter now, we, in line with our real asset debt strategy, also launched the expansion into infra debt strategy as a separate fund, a separate investment area under real asset debt. Within private equity and wealth, we have continuous fundraising.

The wealth -- CapMan Wealth is fundraising both for their private equity programs and their other products. On average, during the last 3 years, they have taken in some EUR 200 million per year.

In addition, our private equity funds and credit fund for special situations. And when we go into 2027, also growth for our fundraising. So succeeding with these fundraises will take us to our AUM target. A couple of words on infrastructure debt, which we, during the quarter, announced that we are expanding into. It's in line with our original plan when we acquired CAERUS last year that in addition to real estate debt, also expand the investment focus into more broadly real asset debt and infrastructure debt being especially attractive at the moment. There's a strong demand across Europe to invest in critical infrastructure, decarbonization, digitalization, strengthening the sovereignty of European infrastructure, and this requires financing also in the form of debt -- private debt financing.

We have also an excellent recruitment here with Rene Kassis, who has some 30 years of experience of specifically building infrastructure debt platforms across Europe, who is joining the CAERUS Management Board and will specifically lead the expansion into infra debt. With this step, we are also strengthening our Western European presence as we are opening a location and office in Paris.

And yet another step in our strategy to focus and strengthen our focus on real asset investments. Then from fundraisings to ongoing value creation and portfolio work. Also here, great start to the year. Positive fair value development across our funds and also very active on the transaction side.

During the first quarter, 6 new platform investments and some more in the pipeline and some already announced now during the second quarter. During the first quarter, especially growth investing in their third fund in 2 new investments and real estate being active across the Nordics. Several residential investments in Sweden, a joint venture with Danish pension fund in Copenhagen, which also secures our first investment or option for our first investment into our Nordic Real Estate IV fund and then Social Real Estate investing in Norway Police headquarter.

So strong development across the board there. On the exit side, during the first quarter, announced the exit of Valokuitunen from Infrastructure I, which is an exceptionally strong exit.

Valokuitunen is also an excellent example of the value creation we were -- we do in our portfolio and our approach of active ownership. So in March this year, we announced that the Nordic Infrastructure I fund has signed the sale of Valokuitunen to Brookfield and Telia. This investment is something that it was a proprietary deal idea by our infrastructure team back in 2020 when it was established as a JV with Telia.

During the fund ownership, our team has been working closely with management and board work in the company, developing the organization, strengthening operational capabilities, strengthening sales and customer interface in the company. To give you some headline numbers, the company has grown into the largest fiber-to-the-home company in Finland, starting from some 20,000 households in the network to now way over 430,000 households.

Growing the organization from 6 persons to more than 100 employees and receiving a Great Place to Work certificate so also building a great culture in the company. Financially, strong success. Revenue growth, fivefold during our ownership period, profitability growth 25-fold during the same period. And doing this in parallel with strong sustainability focus, so Valokuitunen is ranked third in its peer group in the international GRESB sustainability ranking, achieving 95 out of a maximum of 100 points.

So all of this taken together, strong value creation resulting in an excellent exit from the Infra I fund, taking that fund closer to carry and also strongly supporting our fundraising for the Infrastructure III fund. In parallel then with value creation in our investments and in our funds, we are also systematically developing our own operations, building scalable operations, utilizing AI automation and creating more efficient processes.

There's been several development projects ongoing for the last 2 years, some 20 projects just during last year, where implementation continues into this year with the next wave of development projects. You can broadly categorize these into 2 categories, enabling scalable revenue growth on one hand and on the other hand, efficient and cost -- efficiency and cost savings in our operations.

It's around fund structures, fund operations, fund management, reporting, automating that, making it systematically in a scalable format and improving our own internal process efficiency across the board. This, combined with a strong cost control that will continue into this year, we see that we will get scalability in the operations. We already see that in the numbers. And it's good to note that from these efficiency improvement programs, really the full impact we will see when we reach the final closes in our large funds when we take that step change in AUM, that's when it fully will fall through.

But already now, we can see a step change last 2 years from the previous years in fee profit margin and also now in the first quarter, a 2 percentage point improvement compared to last year. And continuing our work in value creation, making it -- doing it hand-in-hand with sustainability and making sustainability count also for the financial performance. So again, here, looking at our funds, we are in the GRESB ratings coming out extremely well, 4 to 5 stars across the board in this international highly ranked benchmarking. We're also ranked by the ISS Stocks Sustainability Index, where CapMan is ranked around -- among more than 170 global peers, and we come out in the first decile of this sample with a very strong rating.

Also that's showing that sustainability is something that goes across our operations. So taken together, we are positioned for strong profitable growth. When it comes to AUM, currently at EUR 7.2 billion, targeting the EUR 10 billion with the ongoing fundraisings that we have. Fee income growing now in this quarter, 22% compared to last year, and we expect fee income to continue to grow in line with AUM development.

When it comes to fee profit, already now, we see an improving profit margin in our operations. And here, we expect fee profit to continue to grow faster than fee income as the business scales, but taking into account that it's not necessarily linear, but really the full impact we see when we get to final closings in several of the funds.

Our long-term financial objectives remain unchanged. On average, more than 15% growth in revenue, excluding carried interest. Here, 22% growth now in the first quarter, keeping a strong balance sheet, targeting return on equity above 20%, equity ratio above 50% and keeping a distribution policy, where we pay sustainable distributions that grow over time. And based on last year's results, a dividend distribution of EUR 0.12 per share, of which half has already been paid and the other part is paid during the fall. Our outlook estimate for the year remains unchanged. So in essence, we estimate assets under management to grow and fee profit to grow compared to last year. Thank you.

Thank you very much, Pia. And now we also welcome Atte Rissanen to the stage, CFO of CapMan. So should we start with questions from the audience here?

Jaakko Tyrvainen from SEB. The recent market uncertainty, overall market uncertainty related to geopolitics and the events in the Middle East, how have you seen this impacting on your market environment opportunity to continue the fundraising as planned and especially on the exit market and the sentiment over there. Will you be able to continue the exits throughout '26?

So overall, you could say we've seen quite limited impact so far. You can basically, I think, divide it into 3 categories. So first of all, fundraising, where we see continued strong momentum and investors continuing to commit capital.

So limited impact there. If anything, we see more interest into Europe and the Nordics overall as a region due to this overall geopolitical uncertainty. When we think about the fund investments and the portfolio, so far, transaction activity has not slowed down, and we haven't seen any negative impact on that side, at least not yet. And when it comes to the development in our portfolio companies, what we see is that -- and in the assets, overall, real assets are less impacted by the equity market volatility.

So we continue to see good value creation there. And also in our portfolio companies, strong development operationally, where we see an impact is, of course, where we use peer group multiples in valuations. So there, of course, especially on the software side, there is an impact from the AI disruption. But I would say, large by large, very limited impact. Fundraising continues, value creation, very limited impact, except for peer groups and transactions so far going ahead.

And the related rise in interest rates, have you seen the higher rate level impacting on the -- especially on the, let's say, real estate and on the infra side, where it's perhaps a bit more relevant.

Actually, no, more limited because on one hand, many of our strategies are more higher returning, so value-add strategies were plus. And then, say, for example, infrastructure, there is very strong appetite for the asset class as a whole in Europe at the moment. So no material impact.

And good to note that natural capital and infrastructure are both asset classes, which traditionally fare very well in an inflationary environment. Also, the recent increase in the rates hasn't been as dramatic as what we saw in '22. So the overall impact is not going to be of similar significance, I think.

And if I may continue a bit on the sentiment-related question. We've all seen the news flow regarding the U.S. private credit. Have you seen in the customer and investor discussions in Europe, have you seen any impact on the sentiment here regarding the investors kind of appetite for illiquid asset classes?

Here, I would actually say that, well, what we see in the U.S. at the moment on private credit, it's good to note 2 things. It's on one hand, it's private credit investment into private companies specifically, which means that private credit investments, real asset debt as we call it, into physical assets or asset-backed investments are actually more -- coming out more attractive due to the kind of worries around the private credit investments into especially software companies, I think.

Secondly, I think what we see in the U.S. is primarily it's -- it's open funds focused for retail investors and retail investors now worrying in this sentiment around the valuations of the portfolios and making redemptions. There's been less actual default in the portfolios as such.

So it's more a retail investor impact so far that we've seen. And our main segment is really the institutional investors. Those are the counterparties for our funds. So again, not impacting those discussions. Overall, again, I would say, if anything, infrastructure, real estate debt investments in Europe, if anything, fare well in a comparison within the private equity -- private credit space.

Then my final one, you already touched about the timeline -- possible time line for the first infra debt fund launch. But could you elaborate a bit more on the planned strategy for this new segment? Will you kind of apply similar Nordic strategy there? Or are you seeing more targets also from Europe? And how you are about to be -- are going to differentiate yourself from the competition?

So within infra debt, the strategy is, in a sense, very much following our real estate debt strategy. So it's a European strategy as the debt strategies usually are more broad geographically. It's also we're staying true to our core of staying in the mid-market segments when it comes to investments.

So it's around financing infrastructure, investments into then critical infrastructure, decarbonization, but in the lower mid-market, where there is less competition in the market, but a lot of financing need. So that's where the strategy goes. So very much in line with our DNA of what CAERUS on one hand is doing in real estate debt and CapMan's core of staying in the mid-market and lower mid-market. We're building the team and the fundraising there at the moment. So launching the first fund is still I think time will happen most likely during this year. But now it's really also finding the right balance exactly for the focus of the strategy, having discussions with potential anchor investors in there.

It will be a Western European plus Nordic strategy, not just Nordics, similarly to those of CAERUS.

It's Patrick Campbell from Nordea. Maybe jumping over to fee income. It was quite strong in Q4 and also quite strong now in Q1. Is it kind of correct to assume that this level is the new normal when accounting for upcoming exits and new funds?

Well, I mean, the Q1 fee income, as you saw, the intake of new AUM was very limited. So basically the growth actions completed during '25 are the factors that drove the fee income growth during Q1. So you could very much assume that this is the run rate fee income if that was the question.

Yes, it was. Very good. All right. Then just quickly on carried interest. So what kind of drove the carried interest in Q1? And how do you kind of see it developing in Q2 relative to Q1?

So in Q1, it was quite limited and it was from our next credit strategy so the tails exits from that one that drove it. And then when we look ahead, we have both within real estate now infrastructure, also buyout, excellent exits that are pushing the funds towards carrying those require consequent exits for carried to realize. But I would say that within the next 6 to 12 months in all of those 3 areas we should see carry.

All right. What about Valokuitunen? And how big of an impact are we -- should we expect from the carry side?

Valokuitunen alone doesn't take the Infra 1 fund into carry. So that closing is not generating carry, but it is clearly securing the fund returns on a level that takes that fund very much closer to realizing carry.

You have to keep in mind that Valokuitunen was only the second exit of the fund. So there's a lot of portfolio companies remaining. But as Pia mentioned, it basically solidified the performance to be stellar for that fund.

Thank you very much. Then we continue with questions. Do you see the EUR 10 billion AUM target achievable in target time line without M&A?

When we succeed with the ongoing fundraisings and nd the target sizes that we have, that will take us to the EUR 10 billion target. So achievable without M&A risk, of course, if something happens in the market or something gets delayed, then it's a timing risk more than reaching the absolute target risk. That said, of course, we are open to continue to look at inorganic growth as well the same way we have been doing over the years, but really core focus now is executing organically on ongoing fundraising.

Do you see a need to refinance 2027 bond? Or could you deliver?

Could deliver. Yes, you will -- of course, given that the maturity is in Q2 '27, we will need to refinance that. But we see this sort of also an opportunity to consider the capital structure in sort of more comprehensive way. So we are reviewing the alternatives related to that refinancing.

And what is the fee profit level percentage, which you see realistic when current fundraising cycle is over?

So we have not communicated a specific target, but I think you can look at the uplift that has been achieved over the previous years now. And as the business is growing, there is significant uplift potential.

As it was evident by the graph that Pia showed on basically how it worked with the last fundraising cycle, there was an uplift of some 5 to 6 percentage points. So yes, there is always an uplift when we reach the next fundraising cycle. But as Pia mentioned, no fee profit margin target is -- we don't communicate that kind of guidance.

And regarding speed of the fundraising, why infra fundraising is able to move with the speed of light, while others are clearly struggling? Is it purely an asset class question?

Fundraising is always a combination of track record, theme and market. And Infra has all of those things very strongly in place. There is a strong market demand. It is a stellar team with a stellar track. That said, I would not agree with that all other fundraisings are struggling. So the forest fund held their first close with less than 12 months of fundraising, less than 9 months of fundraising, which is also a very strong development.

And as said, we are seeing to take in more capital into that fund also in the coming months. Real estate, there, yes, the Nordic real estate fund has taken longer. There clearly, it's a market that has been very challenging over the years. At the same time, good to note that in real estate, we have also shifted focus between what investors have wanted.

So when there's been stronger demand for the open-ended specialized funds, that is where we have taken in, on average, more than EUR 300 million over the -- per year over the past years. And that -- and then the Nordic real estate fund has delayed.

Now we see very strong momentum there. Investors really strongly moving ahead. So also there, expect the first close now.

And the last question, you touched on this already regarding the interest rate, but how that then affects the fundraising activity.

So as I said, we see very, very good strong momentum at the moment and not so much impact, like Atte was saying earlier, these are investment areas where inflation is actually favoring or they are favored in an inflationary environment and the interest rate increases haven't been that drastic. So we expect the fundraisings to go ahead.

Thank you. That was then the last question for today. So thank you very much for coming, and we wish you all a nice day.

Thank you.

Good morning, and welcome to this presentation of CapMan's Full Year Results 2025. Presenting today, we have Pia Kall, CEO of CapMan. And after the presentation, we will have a Q&A session, and you are welcome to send in questions at any time using the webcast link.

So please, Pia, handing over to you.

Thank you, Charlotte, and welcome all to the financial results for 2025. CapMan had a very strong year in 2025. We reached new record levels on all key financial metrics. Our assets under management are for the first time above EUR 7 billion and also fee income and fee profit at new record levels.

In assets under management, we had a 19% growth during last year, up to EUR 7.2 billion. We took in gross EUR 1.5 billion of new capital, EUR 600 million through our acquisition, EUR 900 million of new raised capital, but with good exits, the net growth then EUR 1.1 billion, but a strong 19% growth.

Revenue at EUR 63 million, a 9% growth from last year. Looking at the recurring fee income, an 11% growth, so we had a stronger growth.

Comparable EBIT, up 36% to EUR 25.8 million. It's driven by fee profit growth and strong fair value development in our investments.

During 2025, we also took significant steps in our strategy implementation and strengthened our focus on real asset investments. In the first quarter of the year, our Hotels II fund doubled in size with the acquisition of Midstar's portfolio, raised an additional EUR 400 million of AUM to the fund.

At the end of Q2, early Q3, we completed the partnership and acquisition of CAERUS Investments, a German real estate debt manager, one of the pioneers in the industry. And with this partnership, we also established Real Asset Debt as a new investment area for CapMan, further strengthening our focus on real assets.

At the end of the year, in Q4, we had the first close in Natural Capital's flagship fund, European Forest Fund IV, which continues fundraising, aiming to reach a larger size than the predecessor. And with a strong year behind us, the Board proposal for the Annual General Meeting is a dividend of EUR 0.12 per share for 2025.

Our vision remains to become the most responsible private asset company in the Nordics. And with the investments we do and the value creation in those assets that we do, we are building the society that we want to see in the future. As a responsible owner and investor, our reach in the society is broad.

At the end of the year, EUR 5.7 billion of the assets that we manage are in real assets. It's a 30% growth compared to a year ago. And it spans real estate, where we have 258 properties in our funds, developing human-centric sustainable real estate. 10 portfolio companies in infra spanning energy, transportation and telecom sectors and a 240,000 hectare portfolio of forest in Natural Capital across 8 European countries.

In Real Asset Debt, we are the lender to real estate owners covering 210 properties. Within private equity and wealth, we are supporting small, midsized companies in their growth journeys, a portfolio of 35 portfolio companies with some 10,000 employees.

The value drivers in our business is fee profit and carried interest from our fund management, asset management business and investment returns from our balance sheet investments, primarily invested in our own funds supporting growth of the asset management business.

And when we look at last year through these value drivers, fee profit at EUR 7.4 million, 6% growth compared to the previous year. Carry at EUR 3 million, somewhat down from the previous year. But here, we have large fluctuations between the years depending on when exits take place.

And on the balance sheet investments, investment returns returning to normal levels. Our own funds, fair value uplift above 10% last year and in total, an 8.6% uplift as the external funds somehow -- somewhat weighted it down. Fair values of our investment portfolio at EUR 179 million at the end of the year.

Looking at fee income and fee profitability. We have an 11% growth in fee income. Here, it's good to note that in '24, we had quite significant onetime retroactive fees when we had final closings in funds, something that we did not have in 2025. So if we only would compare really recurring fee income, our fee income growth would be in line with our AUM growth.

Looking at fee profit, 6% growth, we have the same mechanism here that we had no retroactive fees supporting fee profit in 2025. And if we look at the underlying scalability, our operational expenses remained at the same level as in '24, except for the addition of CAERUS and the Midstar organization then transferred to us. So very strong cost control and looking at the recurring numbers, very strong scalability that will continue to come through in the numbers.

In our balance sheet, we had at the end of the year, a portfolio of EUR 179 million fair value of a well-diversified portfolio in private assets. At the end of the year, remaining commitments or undrawn commitments to these fund investments, EUR 58 million, it's an unusually low number, and it will continue to increase when we reach first closes in our ongoing fundraisings and make commitments into those funds.

When we look at '25, we had a positive cash flow from our fund investments, driven by good exits and secondary sales. And when we look ahead, this is a trend we expect to continue. So strong positive cash flow from our fund investments over the years when the current portfolio matures and exits realize.

Looking at the fair value changes of this portfolio, all of our investment areas generated positive fair values during last year, specifically private equity and real estate being strong. And our own fund investments had a fair value uplift of 10.2%. External funds somewhat lower and leading to a total of 8.6% or EUR 15.5 million in positive fair value changes. It is a doubling compared to the previous year.

Adding then up our EBIT components, we reached a comparable EBIT of EUR 25.8 million. It's a 36% growth compared to the previous year, and it is really fee profit growth and the doubling in fair value changes that is driving this EBIT growth.

Our balance sheet remains strong. We have an equity ratio of close to 58%, cash and other short-term financial assets at EUR 65 million and in addition, undrawn credit limit of some EUR 20 million. This balance sheet gives us the opportunity to continue to implement our growth strategy, support the growth of our asset management business also in this continued uncertain market environment.

And when we look at the market, there are no drastic changes in the short term. We are moving in the right direction, but it's still too early to say that the market would properly have turned. Fundraising times have shortened during last year compared to the very long extended fundraising processes the earlier 2 years.

Transaction market is activating, but again, too early to say if the levels are really sustainable and they would still need to improve before we could properly say that the fundraising market has turned. At the same time, when we take a midterm or long-term view, the segment we are focusing on, so real asset-focused private market funds have a very attractive growth outlook with a double-digit growth expected in assets under management in the market overall.

The general market sentiment continues to be uncertain with higher inflation, higher interest rate expected and geopolitics driving volatility. While it creates uncertainty, it's also in certain ways favoring private market real asset funds. Investors looking for diversification there. The private assets are a good sort of diversification and looking for less volatility, asset-backed investments where you have more controllable outcomes, controllable cash flows are also attractive.

And against that backdrop, we continue to implement our growth strategy. In 2025, we took significant steps towards our objectives on gross level, adding EUR 1.5 billion of assets under management towards our target of EUR 10 billion and also significant steps across our CapMan WINS strategic programs.

Looking at the assets under management development, 2025 was the second year in a row where we had close to 20% growth year-on-year. During last year, we added EUR 1.5 billion of new assets under management, EUR 600 million of that through our partnership with CAERUS, adding Real Asset Debt to our investment portfolio and EUR 900 million of new capital raised during the year, primarily into our open-ended real estate funds, Midstars and the Hotel II transaction there being the clearly largest one, but also the other open-ended funds and mandates taking in capital.

In addition, we had the first close in our European Forest Fund IV fund in December and also our Wealth segment grew strongly last year. With good exits and distributing more than EUR 300 million to our investors, the net growth then EUR 1.1 billion, taking us to EUR 7.2 billion at the end of the year.

Looking ahead for 2026 and 2027, we have several fundraisings ongoing, flagships across our investment areas. Within Infra, we are preparing to launch the Infrastructure III fund during 2026. In Real Asset Debt, fundraising for CAERUS VIII fund is continuing, and we're also looking at opportunities and exploring the market for Infra-related debt investments.

Within Natural Capital, the Forest Fund IV fundraising continues after the successful first close end of last year. And in Nordic Real Estate IV, at the beginning of the year, we have secured the option for the first investment into the fund as a seed investment, supporting fundraising that's ongoing in that fund. For all of these funds, we are looking to raise larger fund size than the predecessor funds. In addition, the open-ended real estate funds continue to be attractive, and we expect to take in capital also in those during the year as we have done throughout the previous years.

Within private equity and wealth, we have Nest and Special Situations raising their next funds. And when we look more into 2027, it starts to be relevant also for growth to come out with their fourth fund. Within wealth, continue with the investment partners programs, but also their continuously growing product portfolio. So a lot of activity and succeeding with these will take us to our strategic objective in assets under management.

If you look at the assets we manage and the new capital we take in, at the moment, we have some 55% of our assets under management coming from outside of the Nordics, specifically Central Europe and to some extent, North America. When we look at the EUR 900 million that we raised during last year, it is a very broad mix where you have close to 40% coming from Central Europe, outside of the Nordics, a very strong intake from Sweden, especially for our real estate side and some 20% from our Finnish investors.

Taking another cut at the same numbers, we can also see that 60% of the capital we raised come from new investors to CapMan. So we are continuing to broaden our investor base. This is also the result of very long-term work to build the relationships, which is now bearing fruit. So 60% coming from totally new investors to us and then cross-selling existing investors in one product, also investing in another strategy, some 20% and re-ups at 20% out of the total. Still good to note that when we look at individual funds, the re-up rates are clearly high, somewhere around 70%, 80% normally. But out of the total mix, 20% last year.

When it comes to value creation in our funds, continued strong across all investment areas with good value uplift across funds. Also transaction activity got back to more normal levels, active levels. In total, during last year, 10 new platform investments spanning across especially real estate, where the Nordic real estate markets are offering really attractive opportunities at the moment. So 7 investments out of 10 across our real estate funds. In addition then on the private equity side, Special Situations, Nest and Growth making new investments in their latest funds.

Exit activity, even more active, 15 exits completed last year and across the board with very strong stellar returns. Here, we have private equity being especially active with buyout exiting in total 5 companies, but also Growth and Nest making exits from their portfolio. Then several good, really strong exits from real estate and likewise, from the Natural Capital side. In Natural Capital, 3 different portfolios from Portugal, Latvia, Lithuania exited during last year.

Sustainability work continues hand-in-hand with the financial value creation. Here, a lot of the data concerning 2025 is still being collected from our portfolio companies and assets. But one highlight already now is the progress on climate, where during last year, real estate validated their net zero targets and also achieved significant reductions in greenhouse gas emission intensity across their properties, 56% down and 80% down in their commercial and residential portfolio, respectively.

When it comes to private equity and infra, so the share of portfolio companies with their own science-based emission reduction targets in place grew to 21% of the portfolio from 8% at the beginning of the year. And the sustainability work also showing in international benchmarks where the GRESB results for last year, we have across the board, improved our ratings in our funds, and we now have 5 funds with a full 5-star rating and no fund below 4. It's a significant step-up from '22 where the best rating we had was 3 stars and also less funds being rated back then.

None of this would obviously be possible without the fantastic professionals we have at CapMan. And I'm very happy to see that we continue with a very strong employee satisfaction and inclusion index, eNPS last year at 51 and inclusion index at 81, both above our target levels. And here, obviously, the heavy lifting and the big thank you also goes to the management group, but also all of the team leaders in our organization for keeping the best people, developing them and together making great results.

Looking at our long-term financial objectives. We have an objective to grow average annual growth of above 15%. Last year, 11% achieved. But here, looking at the underlying recurring revenue growth, clearly higher. Return on equity above 20%, last year landed at 9%. Equity ratio above 50%, and we were at 58% at the end of the year.

Our distribution policy is to pay sustainable distributions that grow over time, pay more than 70% of the result, excluding fair value changes. And then when we see that we have excess cash in the balance sheet that we don't need for foreseeable growth initiatives and growing the overall business, we can also distribute that. The Board of Directors proposed to the Annual General Meeting that the dividend for 2025 is EUR 0.12 per share.

When it comes to our outlook for 2026, given the nature of our business, there are a lot of external factors that impact exactly the timing of some -- when we can record some result items like fair value changes or carried interest. And given that what we give an outlook for is the growth of assets under management, where we expect them to continue to grow compared to last year and fee profit that is also expected to grow in 2026. Thank you.

Thank you, Pia. [ We also welcome Atte Rissanen, CFO, to the stage ]. So let's start with our questions.

Sauli from Inderes. About the natural capital for first close, can you give us the number?

We are not disclosing the exact number, but let's put it this way that the size is such that the fund can start to implement its strategy of making significant industrial size investments in the market.

Okay. Then about the real estate AUM, it grew some EUR 200 million in Q4. How much of that was net sales to the open-end vehicles and how much was like just value uplifts?

Majority is new.

Yes, majority is, I say that more than 90% is new intake. It's practically all.

Okay. And that goes to open-ended vehicles, right, social...

Open-ended and mandates, yes.

Yes. Okay. Then your AUM went down basically in all other lines that was due to the exits, right, mostly?

Yes.

Then about the real estate for -- do we have -- in the time line, you show that the final close would be in end of '26. Is that really valid considering the fact that you haven't done first close?

Well, usually, the funds are open 12 months from first close. So -- and we are obviously working towards the first close in the fund.

When should we expect the first close?

We are not giving a more exact time line than it's going on. But what happened there in the beginning of the year is that we have secured the option to make the first investment into the fund, and that is secured. And obviously, having a seed deal in the fund is something that is strongly supporting fundraising.

Okay. Talking about seed investments in the Dasos, you made EUR 10 million commitment for the fourth fund. Is that your total ticket to that fund?

For the time being, yes.

Should we look at that as a proxy when you are making other flagship investments?

It's not a proxy, but yes, it can be used as a generalization of those kinds of flagship strategies.

Yes. Just trying to get a grasp like how much you actually need to invest in the 5 years ago in the previous large vintage, you made some hefty investments there. So EUR 10 million is like peanuts comparing to those numbers, so...

It very much depends on the situation and also how we see that we can tactically utilize our balance sheet to facilitate, support the fundraising.

Can you talk more about the infrastructure debt option, so to speak?

That is exactly that. It's an option. So the core of CAERUS is real estate debt, and that's also where the VIII fund is being raised. But we are ongoingly exploring the option to expand it into infra debt, which will be a very natural expansion given our setup and for Real Asset Debt in general. So it's a combination of market opportunity, investor appetite and the right capabilities, getting them into the team.

And that -- just to make sure that would be for the Central European market?

That would be primarily for the Central Europe or European strategies. With the debt strategies, they tend to be more European than specific into certain -- just a couple of countries.

What about -- on the same topic, what about the real estate debt in the Nordics when you bought CAERUS, you floated the idea that it could be interesting to bring that asset class to the Nordics. Have you moved further with those thoughts?

So the mandate CAERUS has at the moment in their current funds is actually including also the Nordics. So what has happened since we joined up with CAERUS is that their deal flow has significantly increased in the market and also, of course, their ability to assess the Nordic opportunities with local teams, local understanding of the market here is significantly better. So it is definitely part of the scope.

Okay. And then finally, about the management fees in Q4, they were really high, where there's something special like one-offs or something? Or is that like should we look at that as a run rate figure?

That's a very good proxy for the run rate figure. I mean there's always some items that may fluctuate quarter-to-quarter, for example, based on acquisition-related fees or these types of, but nothing that would sort of tilt the picture in the same sense as, for example, a retroactive closing or not in the same magnitude.

So should we like maybe more use second half as a proxy since CAERUS is...

It's always better to use a longer time period than just a single quarter when it comes to our business.

It's Patrick Campbell from Nordea. Just going back to the high management fee in the quarter and perhaps the somewhat soft fee profit in the quarter, were there any noticeable cost items apart from bonuses that should not be extrapolated into the future?

I mean, well, you're correct in looking at the fee profit, but actually in Q4 versus Q4 last year, fee profit improved and fee profit margin also improved in Q4. But yes, I mean, in addition to bonuses, other operating expenses, there's always some variability between the quarters. But otherwise, if you look at the personnel expenses, take out the carry-linked bonuses as well as the other items impacting comparability, you should be pretty on a solid level.

All right. And then just going back to the presentation, you mentioned uncertainty. My question relates to that. So what is the current investor sentiment in the market? And are investors still cautious in regards to taking on more risk?

So I would say there's no drastic changes in the market sentiment from the end of the year. So it's clearly easing up and investors are looking to commit more capital than maybe in the past 2 years, but it's still too early to say that we will be back in a very strong fundraising market. So exit activity has picked up, distributions have picked up, but we need to see a longer track of that, I think, in the market before we can actually say that fundraisings and commitments are fully back. But in general, I would say the sentiment starts to be more positive. There's a lot of good ongoing discussions. Investors are clearly looking to allocate throughout the year now.

I could still continue on the cost. So just to make sure that I understand this correctly. So you booked the carry on the P&L, it's give or take, EUR 4 million and then you are talking about net carry, which is like EUR 3 million. So the delta there that, give or take, EUR 1 million, it's run through the P&L on the personnel expenses basis.

Yes, those are carry-linked bonuses and those are separated there in the -- when we present the APMs in the report.

Yes. Just out of curiosity, like usually, the carry-linked bonuses, they run off P&L. Why is this like some historical thing? Or this is all vintage, obviously?

This is mainly related to Kokoelmakeskus carry booked in Q4. And this is from -- in terms of CapMan in atypical arrangement, but one should take into account that CAERUS has basically all of the carried interest that is paid out to the investment team via the P&L. So that is a line item you will continue to see in the future as well.

And you continue to report the net carry, obviously?

Net carry, yes, because it is basically linked to the carry and not the fixed personnel expenses or related to the fee profit.

Okay. That's helpful. Then about the costs. Obviously, in the first half of '26, there will be some like year-on-year uplift due to the fact that you made the -- you did the Midstar and the CAERUS, of course. But looking at the H2 next year, what kind of cost pressure are you seeing like -- or you can look at the whole '26 just exclude the CAERUS and Midstar?

I wouldn't say that cost pressure right now is a similar type of topic that it's been maybe during the past couple of years. Of course, there's always cost pressure, but I think we're maintaining good cost control and look to do so in the future.

Do you expect your personnel level to stay flattish in '26?

I mean, yes, we are expecting that the scalability of our operations will improve going forward. And yes, that if there won't be any inorganic moves, then the organic growth of the personnel is -- well, should be quite moderate.

Then finally, what was the number of the employees at the end of '25? You reported average, but I mean the average is due to the structural changes, it's -- I guess it's not the right one to use here.

230, I think, is roughly the right number at the end of the year.

Okay. Thank you. Then we move over to questions from our online audience. So we still have some troubled open-ended real estate market in Finland. Are you seeing this potentially creating opportunities for you?

Definitely, we are looking -- I mean, there are opportunities in the market now, both might be because of that, some funds being in trouble. But in general, the markets are very attractive at the moment with valuations that have stabilized, and we also see strong value creation potential going forward. So we are definitely -- like you saw from last year as well, with 7 new investments across the real estate portfolio, we are definitely active on the investment side.

And you have successfully exited buyout targets. Do you need to activate also in Infra exits before launching the next fund?

The launch of the next fund is not dependent on exits in Infra. They have a very good track record. They have exits also in the past. But there are companies that are nearing maturity, and we will most likely see some exits over the coming months and 12 months.

And a question also regarding real estate. Could you provide any indication update on the ongoing real estate for fundraising? Is the first close for the fund realistic during first half?

So like we already answered in one of the questions. So the fundraising is ongoing, and we are definitely targeting a first close this year. We are moving closer to it as we also have secured the first -- the option for the first investment into the fund now in the beginning of the year. So active dialogues there with the investors.

And then a question regarding dividend. Why is the dividend down, not in line with the communicated strategy?

The proposed dividend of EUR 0.12 per share is actually exactly following our dividend policy. So what the policy says is sustainable dividends that grow over time, but not the year-on-year growth as such. What it is, is -- what we're looking at is distributing at least or more than 70% of the profits, excluding fair value changes. And then we're looking at our investment operations and what the need is going forward to support growth and create good returns in our investment portfolio and where we see excess cash possibility to distribute, that's what we distribute to shareholders. And the EUR 0.12 is a total consideration of this that the Board landed at.

Thank you. Any more questions in the room?

Yes. Sauli from Inderes. About the -- your own fund investments, are you expecting it to go up during the -- let's say, during this fundraising cycle? We are currently at EUR 180 million or so. Since obviously, you have some vintages, very large ones coming to exit mode. And at the same time, you need to make seed investments on the new ones.

It's slightly also depending on, of course, the investment performance, the underlying, if the fair values go up significantly, then that increases. But I'd say that the overall exposure should not be going up. Also, there's a significant part of external fund investments that are not part of the strategy. Those will be or should be over time, of course, decreasing. But -- and there is no similar type of EUR 30 million oversized commitments, which were made back in 2017 that play a large part right now in the balance sheet. So it is, of course, very difficult to say how fair values will develop during future years, but it's not in the plans to increase the size of the fund investments.

Yes. So if we look at the cash flow basis, then it's definitely -- cash flow basis should be definitely negative since it excludes the fair value. I mean, investments in...

Yes. So cash flow to CapMan should be definitely positive, yes, yes, yes.

And if I understood correctly, if I look further than just this fundraising cycle, let's throw the ball at the end of the decade or so, the fund investments should be clearly lower than right now since obviously, the old like the legacy Norvestia stuff is clean from the balance sheet, so to speak, and then the large vintages which you mentioned are on the books, right?

That starts to be a pretty long time horizon to guesstimate.

But yes, the relative share will decrease.

And a question here. The management fee had a significant step up from Q3. Could you provide color on what was driving this?

I think we covered it in very much real estate funds.

Real estate and also CAERUS was contributing to that.

Okay. Then we don't have any more questions. So we thank you very much for today. I wish everyone a nice day. Thank you.

Thank you.

Good morning, and welcome to this presentation of CapMan's Q3 Report 2025. Presenting today, we have Pia Kall, CEO of CapMan. And after the presentation, we will have a Q&A session, where you are welcome to send in questions at any time using the chat in the webcast link. Pia, please, I hand over to you.

Thank you, Charlotte. And welcome also from my side. CapMan had a strong third quarter, both financially and in executing on our growth strategy. At the end of the quarter, our assets under management are on a new record level at EUR 7.1 billion. It's a 17% growth since the start of the year, coming both from some EUR 560 million of new capital that we have raised and also the acquisition of CAERUS, adding EUR 640 million of assets under management. Revenue flat or on the same level as last year. During the first 3 quarters, we have not had exits that would have resulted in material carried interest. So that is lacking from the revenue. But if we look at the fee income, it is growing 6% per year, 6% compared to last year. Comparable EBIT, we are 46% above last year at EUR 19.1 million, the growth primarily driven by strong fair value development in our own fund investments.

In our work, we're continuing to execute on our vision to become the most responsible private asset company in the Nordics with the investments we do, building the society that we want to see in the future. And if you take a snapshot of our portfolio at the end of the third quarter, 80% of our assets under management are invested in real assets and the remaining part in private equity and wealth. Real Estate, developing human-centric sustainable real estate across the Nordics is an owner of 259 properties through their funds. Infrastructure investing in energy, transportation and the telecom sectors being part of the green transition with, at the moment, 11 portfolio companies. In Natural Capital, we're investing in timberland in biological growth, climate change mitigation, a portfolio of 240,000 hectares across 8 European countries. And now also for the first time, Real Asset Debt as part of our portfolio, where we offer tailored real estate debt solutions across the entire real estate life cycle. At the moment, in our portfolio, 210 properties.

Within our specialized private equity strategies, supporting small, midsized unlisted companies in their growth and internationalization, at the moment, 37 portfolio companies, a couple lower than at the end of the last quarter as we have had some successful exits in that area. We are a focused asset management house with our main business being management of our funds across our investment areas and the value drivers there, fee profit from these funds and carried interest when we realize successful exits. In addition, as a value driver, investment returns from our balance sheet investments that we focus primarily on investments into our own funds, also then supporting growth of that business.

Looking at these key financials for the first 9 months. Fee profit at EUR 6.5 million is at the same level as last year. It is a strong development because this year, we have not had any retroactive fees for final closings in funds, which we had last year. So underlying business scaling nicely. When it comes to the carried interest, no material exits during the first 9 months that would have realized carry, therefore, a very low number. However, in October, we already had some exits that we'll realize, carry later and several in process that over the next 6 to 12 months should realize. When it comes to investment returns, a fair value uplift of 6.9% for the first 9 months or EUR 12.4 million, good development also compared to the last 2 years and total fair value of our investments, EUR 185 million at the end of the quarter.

Taking a look then at fee income and fee profitability development. Fee income growing 6% compared to last year. If we exclude the retroactive fees that we had last year but haven't had this year, it is a double-digit growth that is in line with growth of our assets under management. Cost control has remained very good. Additions on the operational expense side are basically only the acquisition of CAERUS and the organization that transferred with the Midstar transaction that we did earlier in the year. And as a result then fee profit on the same level as last year, meaning that the underlying business is scaling and the relative profitability improving and on a track to further improve.

When we then look at our balance sheet and our investments there, at the moment, we have private asset investments of EUR 185 million in total, EUR 50 million of remaining commitments into funds. It's a well-diversified portfolio and we have, during this year, used our balance sheet to support growth. There's been a solid, steady investment base across our investment areas deploying capital. And we also used our balance sheet to enable the Midstar transaction by providing an equity bridge from our balance sheet. So using it in line with our strategy to support growth. There's also been a good fair value development in the balance sheet throughout the year but it has not materialized yet into significant exits. That means that where we stand at the moment is that we have a net negative cash flow in our investment operations, but the value developed in the portfolio is not lost. So when the exits materialize and also when the exit market again reactivates, we expect this to reverse and see a strong positive cash flow from the balance sheet.

The value of external funds continue to decrease, that's in line with our strategy. And we have sold off some of our stakes in external funds, both at the beginning of this year, end of last year and also now in the third quarter. And as said, strong fair value development. For the first 9 months, 6.9% uplift in fair value or EUR 12.4 million, primarily that is driven, again, by our own funds across investment areas, contributing EUR 11 million or almost 8% and external funds EUR 1.4 million or 3.5%. Already now with 9 months in, we are on a higher level in fair value development than we were full year in the last 2 years. As we then look at our EBIT components compound, we can see that we are at EUR 19.1 million, 46% above last year and the main driver so far this year being these positive fair value changes.

On the balance sheet side, we maintain a solid, strong balance sheet with good liquidity. Equity ratio at 59% and we have cash and other short-term financial assets of EUR 54 million. This financial stability and strong liquidity enables us to continue to systematically execute on our growth strategy also in a more uncertain market. In practice, what it means is that we can use our liquidity to support growth in our asset management business, decrease interest-bearing debt and that way, deliver strong shareholder value creation.

If we then move on to more of our strategy execution, but starting with a look on what's happening in the overall market. If we look at where we are now or the market sentiment right now, I would say that the economic and geopolitical uncertainty that spiked around April, when we had the U.S. tariff announcements that has somewhat now slowed down or diminished and we have a more stable environment. We see it as -- transaction activity is again resuming. It's picking up. It's still on low levels but it's higher than it was a year ago.

And we also see some indications from market statistics that the fundraising times, median times would start to shorten compared to the very long times that we've seen in the market the last 2 years. I see these as early indications on that the market is bottoming out and turning positive. For 2025, it will still mean that this will be the fourth consecutive year when we have in a market less new capital raised into the industry. But then on the other hand, if we look at it in the bigger picture, it is a growth market. So even with lower new capital raised certain years, the assets under management in the overall private asset market is continuing to grow. And if we take a slightly longer midterm long-term view, it is a growth market with a solid 7%, 8% annual growth.

We continue to implement our growth strategy and our CapMan WINS strategic programs with the objective to reach EUR 10 billion of assets under management and working across our Winning Team, Investors' Choice, Nimble Operations, and Sustainable programs. Looking at the assets under management development and our target, we are now at a record EUR 7.1 billion. So far year-to-date, it's been the acquisition of CAERUS, establishing Real Asset Debt as a new investment area that has contributed EUR 640 million. We've also taken in good new capital into our open-ended real estate funds and also on the wealth side. There are several fundraisings ongoing, actually across all of our investment areas at the moment, ongoing or being planned. In Natural Capital, our Forest Fund IV, we started the fundraising earlier this year and we expect to hold a first close in the fund still during this year.

When it comes to Real Estate, what we see is more investor appetite for our open-ended funds at the moment, Hotels, Social Real Estate, Residential, where we've already taken in total during the year, some EUR 500 million of new capital and also expect more capital inflow there. What it then means with more interest there is that we are moving the target for the Nordic Real Estate IV fund first closing into 2026.

Within Real Asset Debt with CAERUS, we have now jointly kicked off the fundraising for their VIII fund, early stages there, but the joint work progressing well. And also started planning for the Nordic Infrastructure III fund that is something that we'll start fundraising. At the moment, the plan is sometime during 2026. In addition, at the moment, on our private equity side, we have Nest IV so our credit fund and Special Situations II in fundraisings and also several of our wealth products taking in capital. So it's an active agenda, both for the rest of this year and also throughout of next year. But we continue to see strong appetite for our products, especially among international institutional investors.

Total new capital intake during the year, EUR 1.1 billion so far, EUR 640 million from that from CAERUS, EUR 560 million that we have raised. When we look at the split, we are currently with roughly 50% -- a bit more than 50% -- 53% coming from outside of the Nordics. There, we've seen strong growth in the DACH region or Central European region during the year. But also in the Nordic side, especially with the Midstar transaction, good new investors coming in from the Nordic countries, especially Sweden. And if we double-click on the new capital raised into our funds, it is actually quite evident that what we've been successful with this year is attracting new investors to CapMan funds. 80% of the fundraising has been investors who have not before invested with us. It shows that our products are competitive and attractive for institutional investors.

The cross-selling and re-up and top-up to our funds, re-ups at the moment, 12% for the first 9 months. That is basically top-ups through our open-ended funds. So investors who already are in our open-ended funds increasing their commitments to those same funds. We haven't had any large closings in closed-end funds, which is the reason why the re-up rate is low because there hasn't even been that possibility so far this year. But very happy to see these new investors join us and the large share of those, that's a good basis going forward.

When it comes to the investment activity in our funds, it's been solid on the new investment side throughout the year. In total, we made 8 new investments since the start of the year; 6 of those have gone into our real estate funds. The market is attractive at the moment to make real estate investments, and we are capturing that opportunity. In addition, Special Situations and Nest being active on the new investment side. When it comes to exits, it's really only in the third quarter as we've seen exits materialize, 2 exits from our buyout fund, one from Growth II and a portfolio of Portuguese forest that was exited from the Dasos II fund. Also in October, already, we have announced 2 exits from the real estate side, very successful ones, both from Nordic Real Estate III and then the Kokoelmakeskus fund exiting their logistics center, also taking that fund into carry with that exit. And on the exit side, it's been a more challenging market but there are several projects ongoing and processes ongoing at the moment. So going forward, the next 6 to 12 months, we should have more exits realizing.

We continue our systematic sustainability work across our main themes and combining the sustainability work with our financial value creation plans. A testament for that the work is successful and is also recognized is the annual GRESB International benchmarks, specifically for real estate and infrastructure funds. All of our funds improved their scores and their asset level scores in this year's benchmark. And we now have 4 of the real estate funds having the full 5 star rating, so an improvement from last year and also our second infrastructure fund having a full 5 star. Our Infrastructure I fund also improved their scores but the bar to reach 5 stars is actually going up year-on-year. So this year, we were just below that bar and got 4 stars, but it's still a strong development in the underlying assets.

Our long-term financial objectives unchanged. We target a growth of 15% per year on average in revenue. This year 6%, but looking at a slightly longer period, a solid double-digit growth. Return on equity at the moment, somewhat below our target, but the equity ratio clearly above at 59%. When it comes to our distribution policy to pay sustainable distributions that grow over time. What it means in practice is the objective to distribute at least 70% of the group's profit without fair value changes, so basically meaning a fee profit and the carry. And then when we have strong positive cash flowing on our investment operations and we deem that we have excess cash also distributing that to our shareholders.

For this year's outlook, we keep it unchanged. So our estimate is that assets under management will grow compared to last year and also fee profit will grow compared to last year.

Thank you, and let's open up for Q&A.

We also welcome Atte Rissanen to the stage, CFO of CapMan. So let's start with questions from the audience here in the room, please.

About the Kokoelmakeskus, you did the exit last week, I think. Can you give us a magnitude of the carry there?

We will see it in the fourth quarter figures.

Yes, exactly.

Okay. Then about this CBS, I think you said programs, not program. So can you elaborate a bit more on that since, I guess, at this stage, you have only done the CBS, the I, II, III, IV program?

Yes. So on the wealth side, well, obviously, wealth has several different products. Yes, we have the Investment Partners program where we raised the fourth fund and soon go into raising the fifth fund. And then actually, wealth has developed new products also during the year on the credit side, both open-ended and closed-ended programs, still kind of in the initial phase but also those are fundraising. So broadening their product scope.

Jaakko Tyrvainen from SEB. On CAERUS and the level of AUM around EUR 600 million right now. Could you elaborate a bit more what is the CAERUS impact on the fee profit side? I know that you provide some high-level numbers for us. But just to understand the fee profit going forward and how is the fundraising progressing? And what has been the investor take-up in the Nordics regarding this your new or you expanding your portfolio offering?

Yes. I can take the fee profit. So we've provided some details in connection with the preliminary purchase price allocation calculation. And there we state that the fee income during Q3 or basically now the first 2 months that CAERUS has been with us is EUR 0.6 million and the fee profit impact is EUR 0.1 million.

And I can take on the fundraising side. So the fundraising is really in the early stages. And as always, starting first with your existing LPs and their kind of re-ups. And there, what we see from the investor side is reactivating interest. So it's been tough on the real estate side, as we all know. And now we see several investors who are indicating that they will deploy during next year and we do discussions there, and then only starting up the discussions with the broader CapMan network.

Then on the forest fund -- next forest fund, which is targeting closing by the year-end. Are you planning or expecting the final fund size to be above its predecessor?

That's the target, yes. But not yet at first closing but as the final close size of that fund definitely.

Then the IPO window finally has opened also here in Finland and the -- also assets on the real estate side are perhaps moving a bit more actively. Any outlook commentary or expectations on carry for Q4 and perhaps looking at '26?

So like I said, there are -- well, for Q4, Kokoelmakeskus hasn't of course already realized and that fund went into carry. But then looking into '26, there are across different funds, several exit processes ongoing. It's a bit early to say exactly when they will realize and which are the funds that will ultimately move into also realizing carry. But over the next 12 months, yes, expect exits that will generate carry.

It's Patrick Campbell from Nordea. Just a few questions. First, starting off going to fundraising. So why are investors preferring to invest in open-ended funds as opposed to the new closed-end funds?

It's different strategies with different return expectations. So specifically in our real estate side, in the open-ended side that are targeted to institutional investors, it's stable income strategies also very specialized. So specifically Residential, Social, Real Estate and Hotels with then lower -- but also lower return but also lower risk level, which several investors at the moment see that this is a good time to enter those specific segments in these type of assets. Our Nordic Real Estate IV fund is a value-add fund, so higher return, higher risk. In other words, a different investment strategy. And right now, there's been more interest towards these specialized strategies.

Then just going back to exits. So in H2, you had quite a few exits if you look at the comparison to H1. What are you kind of seeing in the market? What has changed? Is it a function of price or multiple expansion or just less uncertainty in the market?

I would say it's -- now specifically in Q3, it was less uncertainty in the market. So I mean, they are normally quite long processes. And across the board, we saw there around the end of Q1, early Q2, basically more or less a freeze in the market, which just then delayed things and then it started moving again and is realized now in Q3. So that's the dynamic why they all ended up now quite close to each other.

Okay. Then we have no further questions. So thank you very much for this presentation. And we wish everyone a nice day. Thank you.

Thank you.

Good morning, and welcome to this presentation of CapMan's Half Year Report 2025. My name is Charlotte Wessman, Head of Communications. Presenting today, we have Pia Kall, CEO of CapMan. And after the presentation, we will have a Q&A session. You can send in questions any time during the presentation in English using the chat box in the webcast link. So please, Pia, and I hand over to you.

Thank you, Charlotte, and welcome also from my side. During the first half of 2025, we continued to execute on our strategy, and we focus even more on real assets. In March, our Hotels II Fund acquired Midstar's portfolio of 28 hotels across Sweden, Denmark, Norway, one of the largest transaction of its kind in the region, and it also added EUR 400 million of assets under management to CapMan, doubling the size of the fund.

In June, we announced and now in July closed an acquisition of CAERUS Debt Investments, a German leading real estate debt manager with focus on the DACH and Benelux region. And with this we form a new investment area, Real Asset Debt, that further strengthens our focus on real assets. And this will, in the third quarter, add some EUR 700 million of assets under management to CapMan.

We will towards the end of the presentation, take a deep dive into CAERUS and the market that we have now entering there. But before that, a look at the key financials for the first half year.

On the financial side, we continue to solidly develop and progress on our growth strategy. Assets under management at EUR 6.5 billion at the end of the first half, this is still excluding CAERUS, an 8% growth from the beginning of the year.

Revenue, EUR 27.1 million, slightly down from last year, which is due to that we had no significant carried interest during this year -- first half of the year, but several exit processes ongoing where we expect exit over the next 6 to 12 months.

Comparable EBIT, EUR 10.6 million, fairly in line with last year, but the change in the mix where we, this year, have very strong fair value development, and as I said, no carried interest contributing.

We continue to further our vision to become the most responsible private asset company in the Nordics. With the investments we do, the value creation we do in our assets, we are today building the society we want to see in the future. As a responsible investor and owner, we are creating value for our investors, but also for the society.

Our real assets now standing at EUR 4.9 billion of assets under management, real estate being the largest one where we are developing human-centric, sustainable real estate. At the moment, an owner in 257 properties across the Nordics. In infrastructure, investing across energy, transportation and telecom sectors being part of the green transition with a portfolio today of 11 portfolio companies.

Within natural capital, investing across Europe, invested today in eight European countries with a portfolio of 240,000 hectares of land where we invest in biological growth, climate change mitigation. In private equity and wealth, across our specialized private equity strategies, we are supporting small midsized companies to grow and develop. At the moment, 39 portfolio companies with close to 11,000 employees.

When we look at the value drivers in our business from the asset management business, it's really fee profit and it carries interest when we realize exits from our funds, and from our balance sheet investments, investment returns, and we also use the balance sheet to support our asset management by investing in our own funds.

Key financials looking through these value drivers, fee profit, EUR 2.8 million, down from last year. But if we take a longer perspective, a continued strong growth of, on average, 22% per year annually for the last 3 years.

Carried interest, EUR 0.2 million, no significant exits that would have generated carry during the first half of the year. It is volatile by nature depending on when the exits happen. And if we look at the last 3 years, on average, EUR 4.3 million per year.

Investment returns EUR 7.6 million. Fair value uplift in the first half of the year, 4.3% uplift. The fair values of our total portfolio stands at EUR 186 million at the end of the first half.

Taking a deeper look at fee income and fee profitability development. Fee income, flat compared to last year. But here, it's good to note that last year, especially in the second quarter, we had several final closings of our funds and with them, the usual retroactive management fees that are recorded in that specific quarter when the final close take place.

We had no such final closings this year in the first half. And if we look at the development without these onetime effects, actually see that fee income continues to grow in line with assets under management.

Fee profit at EUR 2.8 million, the drop seems larger, but it's actually exactly the same that's impacting there. So it's the first half of the year not having this year any this type of final closing retroactive fees. On the other hand, cost control has remained very strong and good, and we are basically at the same level as last year. So looking at the longer trend, we see that the scalability and fee profit margin development continues on a good track.

Our balance sheet at the moment at EUR 238 million, where we have EUR 52 million of cash and other short-term financial assets, giving us a very strong liquidity to support the business in also a more turbulent market environment.

Our investment portfolio in private asset funds stands at EUR 186 million with outstanding commitments of some EUR 60 million. It's well diversified, and as we will see exit starts to realize, we expect a significant positive cash flow from the portfolio over the coming years.

Looking at the value development in the balance sheet, it is a long-term business where we can have quite large variations, especially between quarters, but also between years. For the first half year this year, EUR 7.6 million of positive fair value development. And here, good to note that our own funds contributed EUR 8.8 million or 6.4%, and we had a positive fair value development across all of our investment areas, significantly stronger than last year.

When we then add up the earnings components for our EBIT, fee profit, EUR 2.8 billion. As noted, no significant carried interest this year, but strong fair value changes takes us to EUR 10.6 million, very close to last year's EUR 11 million.

On the balance sheet, it continues to be very strong with very strong and good liquidity, equity ratio above 60%, EUR 52 million of cash and other short-term financial assets. With this strong liquidity, we can support growth of our asset management business and also decrease interest-bearing debt while keeping up a strong dividend distribution, and it gives us financial stability also in more uncertain market conditions.

And from that, moving to the more longer-term development and starting with the overall market. No significant changes compared to the situation before summer.

In the first quarter of the year, we saw transaction activity pick up, and that gave some positive signs that also the fundraising market could start to pick up, but during the second quarter, with the U.S. tariff announcement and in general, the more increased geopolitical uncertainty, we see that the transaction market is again slowing down or has slowed down.

And with that, also the fundraising market continues to be challenging. Limited amount of exits in the market means limited distributions to fund the investors and them easily postponing their decisions. So continue to see longer fundraising processes.

That said, in the midterm and the long term, we see this as a very attractive market. It is a growth market with strong fundamentals, and we are well positioned in our own niche of real assets. And we continue to implement our growth strategy systematically across the board.

Strategic objective to reach EUR 10 billion of assets under management, and we're driving it through our CapMan WINS strategic programs: Winning team, Investors' choice, Nimble operations and Sustainable. Here, one thing to highlight, Winning team, where we are striving to build the best teams in the industry and also offer our people the best opportunities to develop and thrive.

During the first half of the year, we have completed several strategic recruitments and also promotions within Natural Capital, where the new Managing Partner will start now during the fall, within Fund Investor Relations and Sales, where we have senior professionals from the industry joining based in London, and within Real Estate, we have strengthened our asset management organization across countries both with promotions and with recruitments, making sure we are even closer than before to our assets and then able to drive value creation in our properties.

Looking at our growth ambition to reach EUR 10 billion of assets under management. It is coming from scaling our real asset investment funds, launching new products and targeted acquisitions. Already during the first half or year-to-date, the Hotels II scaling of that fund with the Midstar acquisition, adding EUR 400 million of AUM, now the completed partnership with CAERUS that will add some EUR 700 million, contributing to this growth objective.

In addition, our flagship fundraisings, Nordic Real Estate IV, European Forest Fund IV, are progressing, and we see strong interest from investors, target still to have a first close in these during this second half of the year. Also in our income-focused real estate open-ended funds, we see increased activity and dialogue with investors interested in these strategies.

And if we look at the numbers for the first half of the year, we have raised a total of EUR 500 million of new capital primarily into our real estate products. It's a testament too that our real estate products are strong performing also in a more challenging market environment.

We continue to see good interest from international institutional investors and the balance of roughly half of our assets under management coming from Nordic institutional investors and the other half from Central European, North American investors likely to continue with even more in the future coming from international ones.

In our funds, strong performance across all investment areas. We have good investment capacity or dry powder to deploy into new investments, five new investments completed during the first half of the year, in addition to the Midstar acquisition in the hotels fund, logistics in Sweden into real estate and also residential in Denmark. In addition, our Special Situations fund completed a new platform investment into residential care in Finland, and our credit strategy, Nest, also did one new investment.

During the first half of the year, we had no platform exit from the portfolio, but several exit processes are ongoing, quite significant ones as well. And already now in July and August, we have signed and announced one exit from the Buyout XI fund and one from the Growth II fund and expect several further exits over the next 6 to 12 months.

When it comes to value creation, sustainability continues to be one key element of how we drive value in our assets across our five material teams. Here for the first half, wanting to highlight climate action based in science. During spring, real estate achieved a Science Based Targets initiative validation for their net zero climate targets in line with the Buildings criteria. There, we're one of the first companies globally to achieve this validation.

In addition, the share of portfolio companies that have their own SBTi target set is continuing to increase, 17% of the portfolio at the moment where we had two buyout companies getting their targets validated in the first quarter. During spring, we also published our Investment Sustainability Report, where it's easy to see more details across all of these five themes in each of the investment areas and the progress that's been made there.

Our long-term financial objectives remain unchanged, targeting growth above 15% with a very strong balance sheet and a distribution policy with sustainable distributions that grow over time. And for the outlook estimate for 2025, it remains unchanged. We estimate assets under management to grow compared to last year and likewise, estimate fee profit to also grow compared to last year.

And here, we conclude the financial part of this webcast, and I would like to ask Michael Morgenroth, the CEO and Founder of CAERUS, to join me here on stage, and we will take you through a bit more details around what CAERUS is and what this partnership means. Great to have you here, Michael.

Hello. Welcome.

And really happy to be able to announce this partnership and I'll start with going through a couple of highlights from CapMan's perspective before I let Michael go into the details about CAERUS and the market that we are now entering together.

So at the end of July, we closed the transaction where CapMan acquired majority of CAERUS Debt Investments, and Michael retaining 49% ownership in the business. So really a partnership. With this transaction, we are establishing a new investment area for CapMan, Real Asset Debt.

It's an investment area that complements our real asset-focused strategies. So it's complementing real estate, infrastructure, natural capital, equity strategies that we have, giving us now an entry into a well-established, growing market of real asset debt.

CAERUS, on the other hand, is for us the perfect partner for this, a leading, one of the pioneers in the German market when it comes to real estate debt and with a long -- with this long presence, also what impressed us was very strong, sustainable track record over the cycles.

For us, also from a CapMan perspective, and jointly, it is adding now some EUR 700 million of assets under management, but it is a large, attractive market where we see continued growth together. But Michael, if you take us through a bit more of what CAERUS is and your history?

Sure. Well, CAERUS has been founded back in 2012. We are concentrating on Continental Europe with a focus on the DACH and Benelux region. We have been a pioneer in the German market. Back in 2012, real asset debt was not an established asset class, what it is today. So we have come the route to a Luxembourg structure with seven funds raised so far, EUR 2.6 million raised from institutional investors. And as said, the focus is Continental European.

So the reason to look for a partnership was to also expand to the Nordics. We have an experienced team of 12 professionals. The Management Board, Bernhard Berg, Peter Anthuber and Matthias Thomas, as responsible for business development. We have been working on the institutional investor side for many, many years. So we know the needs of institutional investors firsthand, and that's probably something which differentiates us from some of our competitors.

The real estate debt market, in our opinion and not only in our opinion, is really a growth market and a growth story, which has been strongly demonstrated over the last 10, 12 years. As said, in 2012 when we started, it was a bit like missioning and convincing investors of the benefits of this asset class. In the meantime, it has been developed as an established asset class in institutional allocations.

And nevertheless of the developments in the markets in the last few years, I think the polls show a really strong sign from the investor demand as 88% of investors are expected to maintain or increase allocations, which is especially interesting given the fact that a lot of investors have real estate allocations which are on the top levels, which is a consequence of investing in real estate debt as a substitute for bond investments during the low interest environment.

The reason why institutional investors are staying to the asset class is what I think the multiple key attractions what the asset class offers which is risk-adjusted returns, which are kind of defensive way to invest in real estate because you have the equity buffer as cushion, you have low correlations with traditional asset classes like equities and government bonds, and you have a stable and reliable income, which is, for institutional investors, one of the most important issues.

So for them, it's normally a low volatile strategy. If you are concentrating what we have been done for the last few years on whole loans, which are first ranked secured. That gives you the opportunity to stay in the driver seat even if market conditions are getting tough, so what we have seen in the mezzanine market recently.

So -- and the reason why we thought it's good to have a strategic partnership now because normally you would say, it's not the best point in time to sell a stake in your company now. We believe in really big growth in the upcoming years that should be really interesting vintage years for real estate debt for investors.

So CapMan, in our view, offered the opportunity to broaden our investor base, which is so far mainly German-based. CapMan also brings for us on the table real estate management capabilities, which gets more and more interesting in terms of renewing assets in terms of ESG and sustainability.

And in that case, that's somehow typically for Nordic players and they are much more advanced in sustainability issues like ESG, where we think we can really profit from that knowledge as well as investors are really looking -- still looking to have some improvements on that side. So that have been our thoughts in getting into that partnership.

And it complements very well how we are looking at it also from the CapMan side. So for us, really fitting very strongly with our strategy to continue to focus on real assets and adding an asset class that we were actually missing and a product range that we were missing within real asset debt.

And I think we felt from the start of the discussions also a very strong cultural fit between the teams and with the CAERUS team continuing to drive the real estate debt and the real asset debt investment area, important that, that fit is there, but also as we view it, one of the strongest team in the Central European market.

It obviously supports our growth objective to reach EUR 10 billion of assets under management, but it also gives interesting opportunities if we look at the midterm, long term with geographic expansion where we can complement not only on the LP side or on the investor side, but also geographically supporting CAERUS towards the Nordics, but then also over time, offering a stepping stone potentially for some of our equity-focused investment areas into Central Europe. So really a win-win from both sides. I'm really looking forward to drive it forward.

Same for us.

CAERUS will be the core of this new investment area, Real Asset Debt, and will operate the same way as our other investment areas. So really the same team continuing to drive the investment operations independently getting the support from our platform expert services and also from our balance sheet then in new fund raisings.

And as I said, strongly aligned with our growth strategy and our focus on real assets now adding EUR 700 million in an interesting, growing segment of the market. And aligned with how we have also communicated that we are driving growth, scaling real assets, launching new products and this targeted type of acquisitions or partnerships. Strong complement to what we have in the portfolio at the moment.

And with that, I think we are ready to open up for Q&A, and Charlotte and Atte also joining us for questions.

Thank you very much. Now we also have Atte Rissanen on stage, CFO of CapMan. So let's start with questions from the audience.

Sauli Vilen from Inderes. A couple of questions regarding CAERUS. When was your latest fundraising for the fund?

Our latest fundraising was back in 2018.

And then we're currently fundraising.

Yes. And now we are raising a new fund. The reason why we didn't raise in between was COVID at one hand and on the other hand, we had still dry powder to invest. So there was no need to fund raise.

How large was the latest fund back in 2018?

EUR 150 million.

Then about the like, you could say, maturity of your funds, how much of the 700 -- the AUM of EUR 700 million will -- you will repay back to investors, let's say, in next 3 years or so, for example? Just trying to understand like how sticky the AUM is what you got there.

I would say roughly 75% of that.

But then with that said, good to understand the dynamic is different from our equity strategies. So the length of these funds are at least 5 years or more kind of forward. And in these funds, you can recycle the capital several times. So it's not -- even if it's returned, it can also be reinvested and there's some EUR 300 million of dry powder at the moment that's not part of that EUR 700 million that can also be invested in addition. So it's cycling much faster than our equity funds basically.

But is it also like more sticky in that sense that even though it recycles, it still stays under the management?

Yes.

Okay, okay. That's good. What kind of size of the fund are you planning to raise at the moment?

The new one will have a size of EUR 500 million target.

Okay. Then about the cross-selling potential, I'm not sure who will take the question, but I mean how do you see like the Central European market? Like can you help CapMan with their equity products, products there in the real estate space?

Well, yes, I think we have very well -- very good connections to institutional investors. So that's definitely one of the targets to help each other in cross-selling. And I think the product CapMan is offering are really well positioned to find interest of institutional investors.

And it goes both ways actually. So there is a complement when it comes to broadening LP base. So the institutional investors CAERUS have, some of them are known to us, some of them are new, but then also the other way around, we have a more diversified LP base, so supporting CAERUS fundraising there when we join forces.

But also when it comes to products and geographical scope, this complementing us having a strong presence in the Nordic market in real estate, being able there to support Michael's team, and then on the other hand, as I said, a stepping stone potentially over time to expand, but then we're talking more midterm when it comes to the equity strategies.

Michael mentioned in the presentation that you were maybe planning to expand to Nordics and CapMan was obviously a platform on that. What kind of expansion are you talking about? Just trying to sell for the Nordic investors? Or what was your original plan for the Nordic expansion?

No, it's both. We already got a lot of financing requests from the Nordics in the years before, but we always think it's more reliable to have special knowledge on the ground, which we hadn't before. Now we got access to really Nordic expertise, which will help us definitely to get the business much more improved in the Nordics, and that goes both ways, investors and deployment.

Okay. That's clear. Then finally, about your track record, you have been doing this like over a decade now. So what kind of IRRs have you been able to produce with your funds?

Well, the bulk of funds had strategies with whole loan deployment, and the results have been also in the low interest environment, normally in the range 400 plus.

But I think it's fair to say that it's above the target returns that you have promised to your investors. So it varies between funds, but they are all of them basically above target returns. So returning to investors what they wanted in a way.

Yes. It's good to note that with credit strategies, it's more about sticking to the strategy, delivering what you promise, then hitting for the high risk, high reward cases and thereby achieving alpha in that case. The consistency is the key in the credit, and I think CAERUS has exhibited that very well.

And the consequence of being very selective and maybe driven by conviction instead of just fee income was that we have been very reluctant in the last 3 years also before interest rates changed. So for example, in 2021, we have only done EUR 30 million new business because we weren't convinced that the risk return relation is favorable towards lenders.

So that's one of the reasons why AUMs got down, which has been close to EUR 2 billion before, and it's a cycle. We have advised investors not to invest. We have been criticized for that sometimes. Now they are happy, but they are constrained by other issues. But now we can really recommend to invest because now the risks are not out totally, but the risk return relation and the returns which are offered by raising debt are really attractive compared to other asset classes.

What is the timetable for the first close of the EUR 300 million fund?

It has only now started.

As soon as possible. As Pia mentioned, transaction volume is still low, and that is still a fact for a lot of institutional investors to reallocate to real estate strategies, which includes debt strategies. But once this is picking up and investors are able to realize some exits, then that should be on top of the allocation. So we hope for first closing in Q4, Q1.

It's also good to note that when we say we have started fundraising, actually, that's not true because you have started, but it's only -- we only closed this at end of July, last day of July. So together, we haven't yet had time to do that much. So in that sense, early days also and looking at broadening that base.

Then finally, on CAERUS side, what kind of integration are you planning to do considering the fact that CapMan owns 51%. And obviously, it's a totally new geographical market to you in that sense where you actually have presence, I mean?

Yes. No, no. So the investment team wise, it is like all of our other investment areas, very independent. And when it comes to some of the platform functions or support functions, there we are pragmatically looking at where we can actually add value and support whereas then where there are good established systems in place with third-party providers, et cetera, then we continue as that is. So we are basically taking a very pragmatic approach on integrating where we can support, not breaking what's not broken.

It's Patrick from Nordea. Just a question going back to CAERUS. What do you kind of see as the main hurdles of bringing this concept to the Nordics?

Actually, I don't see so many hurdles.

Well, you could argue that it's not a very large concept in the Nordics at this point, and maybe investors aren't really used to this kind of strategy.

It hasn't been a large concept in all of Europe before as well. As said, our plan was to expand to the Nordics on the deployment side and on the investor side. And with this partnership, we think it's -- it should work to convince investors to invest in this compelling asset class.

All right. Then maybe going back to just a quick question for Atte. What really drove the kind of increase in personnel cost quarter-over-quarter?

Quarter-over-quarter, you can actually see in the -- if you look at the alternative performance measures, there's items impacting comparability. There's some reorganization costs of slightly in excess of EUR 300,000. If those are taken into account, the uplift in personnel expenses quarter-over-quarter is some 3%, some EUR 250,000. So -- and that is basically the run rate growth. And that's mainly due to new recruitments completed and to strengthen, for example, fund investor relations and some of the selected investment teams.

All right. And then my last one, just given that you've raised about EUR 500 million in the first half, what are you kind of seeing from clients and what are maybe the implications for the flagship funds? And has the situation improved or has it become worse?

I think the situation is, when it comes to the fundraising market, pretty much the same as it has been. So at the beginning of the year, there was a hope overall in the market that the fundraising market would ease but that we haven't seen. At the same time as saying that one, I think the dialogues are more active now.

So we see more interest from investors into the products, but the processes are still very long. So when it comes to the flagship fundraising, target still is that they have the first close both for Nordic Real Estate IV and European Forest Fund IV that they are during the second half now of the year. So no change there in the plans.

This is Jerker Salokivi from Evli. Just a follow-up question for Michael. You said that you now could recommend to invest, I assume, as compared to other asset class. So is this kind of refers to other asset classes being weaker? Or could you just comment on that?

Sorry, I didn't catch.

I think you said that you can now recommend to invest in the asset class. I assume that was maybe referring to compared to other asset classes. So is this kind of a reference to other asset classes being weaker now than they maybe where or is your asset class now stronger?

Well, it's referring to the spreads which real estate or real asset investments offer. And as many investors are still a bit reluctant and cautious, real estate debt offers a lot of protection mechanisms. So that should be one of the most asked for asset classes.

Thank you very much. Then we move over to questions from the audience online. And Michael, this is for you, and you've touched up on it already. But if you have to name one key benefit or enabler that you expect from CapMan, what would that one be?

It's not only one, I have to say. It's a range of, as I already mentioned. It's collaboration in terms of real estate asset management, it's collaboration in fundraising, and it's profiting from CapMan's expertise in ESG issues.

Thank you. And regarding private equity, are you seeing the global trade tensions impacting negatively or should exit market? Are plans being postponed, valuations declining, et cetera?

So what we've seen overall, especially on the private equity side in the market as well, transaction activity that actually Q1 was quite good if we just look at the market statistics, better than the previous year, better than the fourth quarter. If you look at Europe, that slowed down significantly in Q2. So in that sense, we see investment activity being slower.

And yes, that means that some exits take longer. Some new investments might also take longer. When we look at our portfolio and the underlying business of the portfolio companies, we do not yet see any significant impact from this -- these tariffs, but it's also early days, but the value creation there has continued strong. So it's mostly on the transaction side that we see slowing down.

Thank you. And that was all the questions we have for today. Sorry, one more there.

Yes, Sauli from Inderes still. About the sale of services, they were up quite a lot in the first half and especially the second half. What were the drivers there?

The main driver is the Midstar transaction. So that is generating a lot of the asset management fees related to the portfolio.

And then you book that on the service line.

It generates both management fees, that fund, but also asset management fees from managing the hotel portfolio itself.

Right. Yes. Okay. That makes sense. Yes. Then finally, on the fee profit guidance, you basically are behind on the first half or so. What gives you the confidence that you will reach the guidance during H2 basically?

It's basically tied to that we succeed with the fundraisings that we have, succeed with continued cost control and then also just since AUM is growing all the time, that also there's the run rate on fee income going up. So with that, we see that the outlook still holds.

Okay. Thank you very much, and thank you to all of you, and we wish everyone a very nice day.

Thank you. Bye.