Good morning, and welcome to this presentation of CapMan's Q3 report 2026. Presenting today, we have Pia Kåll, CEO of CapMan and after presentation, we will have a Q&A session. You are welcome to send in questions in the chat. Pia, and over to you.
Thank you, Charlotte, and welcome also from my side. In the third quarter, CapMan continued strong growth. We realized carried interest from very successful exits, and fundraisings continue active towards fund closes now at year-end. Our assets under management at the end of the quarter stand at EUR 7.7 billion, a 6% growth from the start of the year. Strong closings in the second quarter, and now we are working towards year-end closings in most of the funds that are fundraising. Revenue grew 19% compared to last year. There is a strong fee income growth and also carried interest that is boosting the revenue growth. Comparable EBIT stands at EUR 17.2 million. It is EUR 1.9 million behind last year. Here we have fee profit growth and carried interest growing EBIT and almost offsetting the lower fair value changes of almost EUR 6 million lower this year than last year.
When we look at our assets under management, we have during the year taken in some EUR 550 million of new capital, record high capital intake in the second quarter, EUR 440 million just that quarter, with the first closings in Infrastructure III and Nordic Real Estate IV fund, and also our Forest IV fund then having an interim closing. Now we are working towards closing at the year-end, both in the flagship funds and also in the open-ended real estate funds. The capital that we have taken in is a good mix of both re-ups from existing investors and also attracting new institutional investor. It is primarily coming from Central Europe, German-speaking DACH region, Benelux region, and also North America, Canada, where we have new investors joining us into our funds.
At the moment, what investors are looking for is really resilient investments, resilience in two aspects, both predictable, stable, diversified returns, but also investments that are building a more resilient society. That is what we are doing with our investments, primarily in the Nordics, within real assets, investing today to build the future society that we want to see. As a responsible owner creating value in our investments, we span a broad portfolio across the Nordics and Europe. Real assets stand for EUR 6.1 billion of our assets under management. This splits into some almost 470 real estate properties split across real estate equity investments and also financing for properties through our real asset debt investment area. 11 infrastructure portfolio companies and some 225,000 hectares of timberland across Europe.
Within private equity and wealth, our portfolio is EUR 1.6 billion, and here, in addition to wealth, spans across 37 portfolio companies that are strongly growing and at the moment, some almost 10,000 employees. From a shareholder perspective, the value drivers to look for are really fee profit and carried interest from our asset management, fund management business, and then in addition, investment returns from our balance sheet investments, primarily invested into our own funds to support growth of the fee-generating business. When we look at the key financials for the first nine months, fee profit at EUR 6.6 million, slightly up from last year, and on average over the past three years, some 19% growth in fee profit. Net carried interest at EUR 3.9 million, slightly above the three-year average, and a clear uptick now in the third quarter with excellent real estate exit.
Investment returns at EUR 6.8 million, a 3.7% increase in fair value uplift, and the total portfolio at EUR 175 million. Here, our own funds contributed positively across the board. Slight negative impact from external fund investments. When we look at the fee income and fee profitability dynamics, in fee income, an 11% growth compared to last year. Underlying here is management fees growing 21% on the back of successful fundraisings, service fees this year, and especially this quarter, lower. Last year was an exceptional year in that respect. Here we have some volatility quarter to quarter with, for example, transaction-related fees. Fee profit margin, a 1% growth, margin stable at 14% despite some selected growth initiatives and the ramp-up of infra debt. Scalability continues, and if we look at the third quarter alone, fee profit margin here in the quarter was 19%.
We continue a strong cost control and also driving our development projects across increasing efficiency with technology and AI deployment. The efficiency improvements will allow us to take in more assets under management without the cost base growing at the same pace, and the uplift from this one will really be visible when we reach the final closes in the large fundraisings that we have ongoing at the moment. When we look at the balance sheet investments, good diversified portfolio and continue to have a strong cash position, end of the quarter at EUR 61 million and the investment portfolio at EUR 175 million. Successful exit throughout the year, and also carried interest support a strong cash flow from our investment business, and this is a development that we expect to continue also for the rest of the year.
In October, so after the quarter, we signed a new EUR 30 million sustainability-linked loan facility. This will allow us to next year refinance our EUR 40 million bond that is maturing then. Overall, we are moving towards a more capital-efficient balance sheet, where the capital released from our investments will be used to, on one hand, support future growth, reduce external debt, and also allowing for attractive dividends for shareholders. When we look at the fair value changes specifically, first nine months, an uplift of EUR 6.8 million or 3.7%, our own funds contributing EUR 7.7 million, strongly positive across the board, external funds somewhat taking it down a - 2.6% for the quarter. Also here, visible that a positive fair value uplift, but still some EUR 5.6 million below last year's uplift, and that is also what's visible when we look at the EBIT bridge.
Growing fee profit and carried interest takes us to a EUR 10.4 million EBIT before fair value changes. It is an uplift of 55% and countering a large part of the lower fair value changes in this quarter or this year-to-date number compared to last year. Taking us to EUR 17.2 million of EBIT. Balance sheet continues solid and strong cash position, equity ratio above target at 57.9%, and allows us to continue to support growth of the business and execute on our strategy. If we then look ahead and look at the market environment, in the third quarter, we saw a mixed development in the fundraising environment. We have again increasing inflation, higher energy prices, raising interest rates that weigh particularly on real estate and core investment areas.
On contrast, infrastructure is still attracting a lot of interest from investors, and the Nordic market is attractive for international investor as a stable region with good returns. Overall, also real assets in general continue to be attractive for investors, where asset-backed investments like infrastructure, real estate, timberland allow investors to have more predictable outcomes, more diversified and stable outcomes from their investments. In the mid to long term, we are in the right position, both segment-wise in real assets and with a strong focus on the Nordics. Also when we look at external market reports, this market segment is expected to continue to grow double digits over the mid to long term. The implementation of our growth strategy continues, both reaching our growth objective, but also the implementation of our four strategic CapMan WINS programs.
Looking at our AUM development of a longer period, since 2023, we have been growing on average some 19% per year in AUM towards our EUR 10 billion target. Reaching the EUR 10 billion target will happen when our ongoing fundraisings reach their target sizes. If we look at the fundraisings in more detail across investment areas, and for this and the next year, within real estate, it is really Nordic Real Estate IV, the value-add fund, where we had a first close in June and targeting a second close now during the fourth quarter. Target size at final close for the fund, EUR 750 million. In addition, our open-ended funds, especially H otels, Residential, and Social Real Estate, continue to attract investors, and also here we are expecting to hold closes in the fourth quarter.
Within infrastructure, the focus is on Nordic Infrastructure III, a first close in June, and also here working towards a second close still during this year. Target size at final close, EUR 750 million for this fund. Within natural capital, the European Forest Fund IV is in fundraising. The first close was December last year, and the fund has held additional closings both in Q2 and Q3, and looking for a closing also now in Q4. Well on track to reach their target to be above the previous fund, so above EUR 300 million during 2027 final close. Within real asset debt, we see the changes in the fundraising market impacting, and the CAERUS VIII first closing is now expected during 2027. Within infra debt, we are having first investor dialogues, and still expect to launch the fundraising for the first fund in that new investment area still during this year.
Within private equity and wealth, our wealth management side is continuing to take in capital, some EUR 110 million raised already during this year, and several products where they expect capital intake still during the year. On the private equity credit side, Nest IV, Special Situations II, and Growth IV fundraising primarily during next year. In our funds, value creation activity continues high and also good value uplift seen in the funds. It is also a very good market to invest at the moment, and we have, since the start of the year, done 11 new platform investments, and we have deployed some EUR 280 million of new capital into these investments. We also have good dry powder, so almost EUR 1 billion of committed capital that we can use for new investments, so we are able to take advantage of the good opportunities we see in the market.
Real estate has been active, especially in Denmark and Sweden, in total five investments during the year. Growth, three investments into their third fund, and infrastructure has made two investments into the second fund, which is now fully invested, and investment period starts in the third fund. Also, the Forest IV fund made their first investment in the beginning of the year to a Finnish portfolio. If investment activity is high, exit activity is continuing even higher, and some very successful exits during the year. Valokuitunen for Infrastructure I, Silmäasema from the second growth fund, and also very strong real estate exits where during the third quarter, we exited the final investments in Nordic Real Estate I, which also generated carry during that quarter. In total, we have distributed almost EUR 500 million of capital back to our investors during 2026.
This is one of the key metrics that investors are looking at the moment, that the funds are able to actually realize exits and distribute capital, and this strong level of almost EUR 500 million is helping our fundraisings going forward. There is more exits in the pipeline, of course, coming. Value creation and development work also continues internally, where through our Nimble operations strategic program, we are driving automation, AI deployment across, at the moment, specifically our platform functions, but also expanding that going forward, enabling scalable revenue growth and more efficiency, and also resulting in cost savings. This, combined with a strong cost control, means that we will be able to take in more capital without the cost base growing at the same pace, and the uplift here really coming strongly through when we get the final closes in place for the now ongoing fundraisings.
On the fourth strategic program, sustainability. Sustainability primarily for us is something we do to increase the financial value of our assets, but it is also good to see that it is recognized in the international benchmarkings. So, in the latest GRESB benchmarking, we improved scores across all funds that participated, and we now have six funds that have the full five-star rating. We also have three funds that are named global and European sector leaders in their sectors, Hotels II, Residential, and Nordic Property Income Fund. In general, across the real estate funds, the uplift was driven by better energy and efficiency in our properties, and as said, all funds improving. Within infrastructure, we can see the transition work that we are doing, so strong improvements year-over-year in the first fund. Koiviston Auto, a top scorer in their segment.
The district heating assets, Loviisan Lämpö and Nydalen Energi, also improving their scores. In the second fund, lifting one company, there is Skarta being first of the peers in its own group. Overall, continuing the path towards profitable growth, towards our AUM target of EUR 10 billion. Last 12-month numbers now at EUR 7.7 billion. Fee income growing largely in line with the AUM growth, and fee profit scaling. Last 12-month numbers now at EUR 7.4 million. Looking at our long-term financial objectives, year-to-date, 11% fee income growth, slightly below the 15% target. As said, management fees, for example, growing 20% now year-to-date. Return on equity at 10%, equity ratio at 58% above the target. Distribution policy to pay sustainable distributions that grow over time. During this year, on the back of 2025, we have paid a EUR 0.12 per share dividend.
The outlook estimate for the year remains unchanged. Assets under management growing and also fee profit growing compared to last year. Thank you.
Thank you very much, Pia. We also welcome Atte Rissanen to the stage, CFO of CapMan, for the Q&A session. Let's start with the questions.
Hi, good morning. Jaakko Tyrväinen from SEB. Couple of questions. Let's take them one by one. The fee margin, firstly, did not bounce or basically was flat quarter-on-quarter. Pia, you already mentioned the transaction-related fees, but could you help us understand a bit on the underlying performance there? Was the deviation or the delta purely on the transaction fees, and what should we expect looking forward here?
Thanks. To address that, fee income during the first nine months in total, of course, grew by 11% as stated by Pia. If you drill down to that figure, you can see that management fees during the first nine months grew by 21% and also 13% compared to Q3 now in 2026 versus that of 2025. The positive contributing factors behind that growth is, of course, the raised AUM during the beginning of this year and the last 12 months. But then again, you have to account for exits and the AUM-based erosion of the old AUM, which is partially offsetting the impact of the new AUM that is taken in.
All in all, the recurring side of the fee income development very much as foreseen, no surprises there, but then it is, yes, mainly the transaction-linked items, both in funds and in the service line that are moderating the fee income growth. But I think, yeah.
A very strong, exceptionally strong Q3 last year with some items moving between the quarters there, making it exceptionally strong as a comparison period.
Yeah, that is of course good to note that when you look at sort of the development, one single quarter, there is always, especially on the service side and the transaction linked, there is variation, volatility between quarters as they do not necessarily take place exactly in the same quarters. Q3 2025 was very strong in terms of those transaction-linked items.
Good. Thank you on that one. Regarding on the communicated next closing round on the flagship funds, in this case, will you be booking retroactively the fees from the first six months after the funds initiated?
Yes, the closed-end funds work normally so that basically investors that come in at consecutive closings need to pay the management fees as they would have if they would have been there from the first close of the fund. That is how you ensure the fair treatment of all the fund investors. Otherwise, the later arrivals would have a sort of a free ride in terms of that.
Could you provide a bit more color on the muted fair value changes during the quarter? Which strategies or asset classes were up and which perhaps were down?
The majority of our own funds or all of our own funds have been contributing positively during the first nine months, and strong development continued during Q3. The fair value changes, well, again, it is investments that go up and down. Volatility is to be expected. But the main negative driver during Q3 and the beginning of, or the whole of 2026 year to date is the external fund investments.
There is no individual fund where there would have been a major change. So it is positive across the board, slightly lower positive than last year. Last year, the external ones were positive as well. So that is making the largest delta there.
Good. Thanks. Then my final one. You know the more challenging fundraising in real estate. Is this just the rise in the rates that we have seen since summer, or are there any kind of new themes that worries the investors?
I think it is the same themes as all the time. So the increase in rates and the kind of the cocktail of all of the things, inflation, energy prices, geopolitical uncertainty, and now also the increasing rates. It is not affecting real estate or any of the asset classes evenly. So it is a mixed picture. So it is the more core strategies that it is weakening the most, whereas value add and Nordic as a region is still very attractive. What we primarily see is decision-making maybe again being slightly slower in some asset classes from the investor side.
Good. Thank you.
Hi, it's Patrick Campbell from Nordea. Just maybe going back to the mixed market environment. Does this have any impact on upcoming exits, and are timelines and exit conditions still supportive from your perspective, or are there any changes in your view?
I think the transaction market held up better than maybe the fundraising market during the third quarter. There was a change also here in real estate during the third quarter, so transaction market slowing down. It didn't hinder us from doing good exits in real estate in the third quarter. Overall, I would say that on the exit side, no major changes in the market and good assets, you're always able to exit.
All right, great. Then, just maybe following up on the market, how are you seeing investors reacting to these changing conditions?
Like I said, mostly through slower decision-making, if anything. What we see, especially in Central Europe, which is also where we've raised a lot of capital now, is that there is an appetite for real asset strategies. The investors are looking to diversify in a volatile market, looking for investments where it's more predictable, the outcome. When you have an asset-backed investment, that is usually what you get. So, it's strengthening the case for real assets overall. Infrastructure, extremely interesting for investors at the moment. Then, like said, maybe in real estate, where you in some sectors see a bit of slowdown.
All right, thank you.
Hi, good morning. Sauli Vilén from Inderes. About your personnel level, it came down second quarter in a row. Obviously, talking small numbers here, but is this something you are aiming for?
It is normal fluctuations between the quarters, so no, and like you say, very small differences.
Okay. About your organic cost growth, if I calculated correctly, excluding CAERUS, your organic cost growth is around 7% during the first nine months or so. Is that level what you were aiming for? Is there anything special, and is that the run rate we should look forward when we move on?
Thanks for the question, Sauli. As you mentioned, on the personnel expenses side, CAERUS has been the main contributing factor to the fixed salary and fixed personnel expense development. If you take that from the equation, it is mainly related to just accruals on the personnel side and variable items, also reflecting of the AUM intake during the first nine months. On the other operating expenses side, excluding CAERUS, there is the placement agent fees, and then there is an addition to that, expenses related to the ramp-up of the infra debt investment strategy. I think going forward, on the personnel expenses side, the fixed base has been developing very moderately, as you mentioned also in terms of the overall headcount figure. We, of course, keep good control over that and aim to keep good control over that going forward.
On the other operating expenses side, it is the main drivers of the placement agent fees, infra debt that have been growing, but otherwise very stable development, and we hope to keep that also going forward.
Okay, thanks. Then about continuing the same topic on the other end of the coin, so to speak. The fee profit for the nine months is, give or take, flat. I am pretty sure that that is not the level you aimed when you started the year. Can you elaborate a bit, like what drivers has moved differently than you expected since, well, you are only 1% up at the moment?
On the absolute fee profit level, yes, that is true. We are up just 1% compared to last year. But if we talk about the relative fee profitability, that has been developing good, especially during the six months. Now, going into Q3, we had a fee profit margin of 19%, just Q3 alone. But the comparison period, Q3 2025, was very strong, 25%. I think we held up quite nicely compared to the very strong comparison period, and the trend overall remains. But as we have stated, and Pia stated in her presentation previously, the majority of the fee profit uplift will materialize when we approach the final closings of our flagship strategies and the largest funds. It takes time, and yeah. But the outlook for the remainder of the year remains intact, and during Q4, we expect the positive development to continue.
Okay. Then, you booked some M&A costs during Q3. I mean, they were, well, about the same size as the CAERUS deal back in the day. I mean, you obviously have done something, so want to elaborate on that?
We are, like we've also stated, we are all the time exploring options also for inorganic growth. Sometimes they materialize, sometimes they're not, sometimes there are costs related to them, and the fit and timing needs to be in place for a deal to actually come through.
Then a couple of housekeeping things about the Dasos and CAERUS earnouts. CAERUS earnout is coming to an end, I think, around this time, and the Dasos should be coming to an end at the year end, right? So, are the original figures you have on your books still relevant on those?
We don't expect any earnout payments to materialize.
On neither?
Okay, that is good. Thank you.
Okay, that was the questions for today. Thank you very much, and we say goodbye and wish everyone a nice day. Thank you.
Thank you.