Half Year 2026 CapMan Oyj Earnings Call

August 6, 2026

Speaker #1: Good morning, and welcome to this presentation of CapMan's half-year report 2026. Presenting today, we have Pia Cole, CEO of CapMan, and after the presentation we will have a Q&A session. You are welcome to send in questions in the chat.

Charlotte Wessman: Good morning, welcome to this presentation of CapMan's H1 report 2026. Presenting today, we have Pia Kåll, Chief Executive Officer of CapMan. After the presentation, we will have a Q&A session, and you are welcome to send in questions in the chat. Pia, I hand over to you.

Charlotte Wessman: Good morning, welcome to this presentation of CapMan's H1 Report 2026. Presenting today, we have Pia Kåll, Chief Executive Officer of CapMan. After the presentation, we will have a Q&A session, and you are welcome to send in questions in the chat. Pia, I hand over to you.

Speaker #1: Pia, I know the virtue.

Speaker #2: Thank you, Charlotte. And welcome, everyone, also from my side. It's a pleasure to present CapMan's half-year report. We have continued strong growth in the second quarter. We had record all-time high capital intake, and also held first closes in two of our important real estate and infra funds.

Pia Kåll: Thank you, Charlotte, welcome everyone also from my side. It's a pleasure to present CapMan's H1 report. We have continued strong growth in Q2. We had record all-time high capital intake and also held first closes in two of our important real estate and infra funds. Overall, for H1, we have reached key milestones on our strategy execution. During Q1, we announced the expansion into European Infrastructure Debt, specifically investing in infrastructure for resilient climate transition in Europe. It's a growing market segment where private debt will play a key role. This is in line with the growth strategy we set out for Real Asset Debt together with CAERUS last summer at the time of the acquisition of CAERUS. At the same time, with this expansion, we also strengthen our presence in Europe by opening an office in Paris.

Speaker #2: Overall, for the first half, we have reached key milestones in our strategy execution. During the first quarter, we announced the expansion into European infrastructure, specifically investing in infrastructure for resilience and the climate transition in Europe.

Speaker #2: It's a growing market segment where private debt will play a key role. This is in line with the growth strategy we set out for real asset debt together with Kairos last summer, at the time of the acquisition of Kairos.

Speaker #2: At the same time, with this expansion, we also strengthened our presence in Europe by opening an office in Paris. In June, we held the first close in two important funds as well.

Pia Kåll: In June, we held the first close in two important funds as well. CapMan Nordic Real Estate IV fund held a first close supported by both existing and new international investors, institutional investors. This is a fund that continues our successful value add fund series. With this first close, good momentum on track to reach our target size of EUR 750 million during 2027, when we expect to reach the final close. In June, we also held the first close for CapMan Nordic Infrastructure III fund. It's a fund with very strong investor demand, strong momentum, first close supported by more than 20 institutional investors. It is about to be the largest fund for CapMan Infra, with a target size doubling from the second fund. Also here, our plan and expectation to reach a final close at target size during 2027.

Speaker #2: Nordic Real Estate IV Fund held a first close supported by both existing and new international institutional investors; this is a fund that continues our successful valued fund series. With this first close, we have good momentum and are on track to reach our target size of €750 million during 2027, when we expect to reach the final close.

Speaker #2: In June, we also held the first close for Nordic Infrastructure III Fund. It's a fund with very strong investor demand, strong momentum, first close supported by more than 20 institutional investors, and it set out to be the largest fund for CapMan Infra, with a target size doubling from the second fund.

Speaker #2: Also here, our plan and expectation is to reach a final close at target size during 2027. When we look at our financials, assets under management are €7.7 billion—an all-time high—with continued growth from the first quarter, really supported by record-high capital intake in the second quarter.

Pia Kåll: When we look at our financials, AUM, EUR 7.7 billion, all-time high, a continued growth from Q1 and really supported by record high capital intake in Q2. Revenue for H1, EUR 31.4 million, a 16% growth primarily from fee income growth, where carry played a more modest role. Comparable EBIT at EUR 10 million, more or less flat from last year. Strong fee profit growth, but slightly lower fair value uplift than we had a year ago. When we look at our AUM at EUR 7.7 billion, during Q2, we took in EUR 440 million of new capital. That's an all-time high quarterly intake, and overall, during H1, some EUR 500 million raised.

Speaker #2: Revenue for the first half-year was €31.4 million, a 16% growth, primarily from fee income growth, where carry played a more modest role. Comparable EBIT was €10 million, more or less flat from last year—strong fee profit growth, but slightly lower fair value uplift than we had a year ago.

Speaker #2: When we look at our AUM at €7.7 billion, during Q2 we took in €440 million of new capital; that's an all-time high quarterly intake. Overall, during the first half, some €500 million was raised.

Speaker #2: Capital was raised to real estate, Nordic Real Estate IV, where we had the first close; Infrastructure III; also to open-ended real estate funds; and Natural Capital, our forest fund, Forest IV Fund, also took in capital in Q2.

Pia Kåll: Capital was raised to real estate, CapMan Nordic Real Estate IV, where we had the first close, CapMan Nordic Infrastructure III, also to open-ended real estate funds and natural capital, our Forest IV fund also to gain capital in Q2. In addition, our wealth segment has continued strong capital intake. Our investor base continues to be dominated by really international institutional investors from outside of the Nordics. This capital that we're raising is responsibly invested across the Nordic societies, being part of building the society of the future. When we look at our total portfolio, it's really our real asset-focused investment strategies that continue to grow fastest. More than EUR 6 billion of our assets under management now in this segment. Real estate at EUR 3.9 billion had several successful exits during H1. Also now adding AUM through the first close in CapMan Nordic Real Estate IV.

Speaker #2: In addition, our Wealth segment has continued strong capital intake, and our investor base continues to be dominated by international institutional investors from outside of the Nordics.

Speaker #2: This capital that we're raising is responsibly invested across the Nordic societies, being part of building the society of the future. When we look at our total portfolio, it's really our real asset-focused investment strategies that continue to grow fastest—more than €6 billion of our assets under management are now in this segment.

Speaker #2: Real estate at €3.9 billion had several successful exits during the first half, also now adding AUM through the first close in Nordic Real Estate IV.

Speaker #2: In Infra, strong development in the portfolio; we announced exit from Valokuitunen in Q1, with its closing held in July. Now also, with the third fund having its first close, we are growing—so at €0.8 billion AUM at the end of the period.

Pia Kåll: In Infra, strong development in the portfolio. We announced exit from Valokuitunen in Q1, which held its closing in July, now also with the third fund having its first close growing, so at EUR 0.8 billion AUM at the end of the period. Natural capital continuing to taking capital in the fourth fund and also completed exits in the Baltics two portfolios, returning excellent returns to our investors. Real asset debt still primarily focused on real estate debt through CAERUS, but now also expanding in for European Infrastructure Debt. With this business model, the value drivers really for us in the asset management business, the fee income and related fee profit from our funds and carried interest when successful exits are realized in the funds. From our balance sheet investments, investment returns that are supporting value creation for shareholders and also supports growth of our asset management business.

Speaker #2: Natural Capital is continuing to take in capital in the fourth fund, and has also completed exits in the Baltics—two portfolios—returning excellent returns to our investors.

Speaker #2: And real asset debt is still primarily focused on real estate debt through Kairus, but now also expanding through European infrastructure debt. With this business model, the value drivers for us in the asset management business are the fee income and related fee profit from our funds, and carried interest when successful exits are realized in the funds.

Speaker #2: From our balance sheet investments, investment returns are supporting value creation for shareholders and also support growth of our asset management business. Looking at the key financials and the key drivers for the first half, fee profit was €3.6 million, growing 28% compared to last year—significantly faster growth than fee income—demonstrating the scalability of our business.

Pia Kåll: Looking at the key financials and the key drivers for H1, fee profit at EUR 3.6 million, growing 28% compared to last year, significantly faster growth than fee income, demonstrating the scalability of our business. Net carried interest from this period, EUR 0.3 million, modest. When we look into H2, we already have visibility and expect carried interest materials from the exits that are in progress. When it comes to our balance sheet investment returns, a fair value uplift of EUR 6.2 million, 3.4% for H1. Our own funds contributing stronger, EUR 6.6 million, and the total portfolio now standing at EUR 173 million of fair value. When we look at the fee income and fee profitability development for the period, fee income, 16% growth above our long-term financial targets.

Speaker #2: Net carried interest from this period was €0.3 million—modest, but when we look into the second half of the year, we already have visibility and expect carried interest to materialize from the exits that are in progress.

Speaker #2: When it comes to our balance sheet, investment returns a fair value uplift of €6.2 million, 3.4% for the first half year, our own funds contributing stronger, €6.6 million, and the total portfolio now standing at €173 million of fair value.

Speaker #2: When we look at the fee income and fee profitability development for the period, fee income saw 16% growth, above our long-term financial targets. If we look at the underlying development comparing Q2 to Q1, we had successful exits generating significant cash flow for us, but then also reducing the fee-paying assets under management. On the other hand, we had very successful fundraising in the second quarter, but with the closings held late in June, so that capital is not yet contributing to fee income in Q2, but will be contributing from Q3 onwards.

Pia Kåll: If we look at the underlying development comparing Q2 to Q1, we had successful exits generating significant cash flow for us, but then also reducing the fee paying assets under management. On the other hand, very successful fundraising in Q2, but with the closings held late in June, that capital is not yet contributing to fee income in Q2, but will be contributing from Q3 onwards. Still overall strong growth. Fee profit continuing to grow even faster than fee income at a 28% growth, reflecting the scalability of the business as we grow. Fee profit margin also continued to improve despite that we in Q2 had some growth initiatives and also cost for establishing InfraDebt. We continue a strong focus on cost control and also continue to deploy our internal effectiveness measures through implementing AI and automation in our processes.

Speaker #2: Still overall strong growth, and fee profit continuing to grow even faster than fee income, at 28% growth, reflecting the scalability of the business as we grow.

Speaker #2: Fee profit margin also continued to improve, despite that we in Q2 had some growth initiatives and also cost for establishing infra debt. We continue a strong focus on cost control, and also continue to deploy our internal effectiveness measures through implementing AI and automation in our processes, these initiatives aim for platform where we can handle significantly higher assets under management with basically the same cost base in the platform.

Pia Kåll: These initiatives aim for a platform where we can handle significantly higher assets under management with basically the same cost base in the platform. This is also why we expect a continuing fee profit margin improvement, but the real uplift in that margin will really be seen when we reach final closes in our large funds and that large AUM growth is coming through. Looking at our balance sheet and our investments, well-diversified private asset portfolio. At the end of the period, EUR 51 million of cash and the investment portfolio at EUR 173 million in fair value. End of the period, EUR 69 million in remaining commitments into our funds, somewhat up from Q1, we also expect the number to continue to somewhat go up as we make our house commitments into the funds when they keep their first closes.

Speaker #2: And this is also why we expect a continuing fee profit margin improvement, but the real uplift in that margin will really be seen when we reach final closes in our large funds, and that large AUM growth is coming through.

Speaker #2: Looking at our balance sheet and our investments, well diversified private asset portfolio, at the end of the period, 51 million of cash, and the investment portfolio at 173 million in fair value.

Speaker #2: End of the period, €69 million in remaining commitments into our funds, somewhat up from Q1, and we also expect the number to continue to somewhat go up as we make our house commitments into the funds when they keep their first closes.

Speaker #2: During the first half, we had a positive €10 million cash flow from our investment operations, and also when we look into Q2, we expect this positive development to continue, not least because InfraOne's exit from Valokuitunen, which was closed in July. There are also other exits being pursued that will generate positive cash flow.

Pia Kåll: During H1, we had a EUR +10 million cash flow from our investment operations. Also when we look into Q2, we expect this positive development to continue, not least because CapMan Nordic Infrastructure I's exit from Valokuitunen was closed in July, there's also other exits being pursued that will generate positive cash flow. This is overall a trend that we expect to continue with also over the coming years, on average, fund investments, distributions from exits being done, clearly exceeding the new capital drawn to meet fund commitments. As a whole, that we're generating a positive cash flow for the group. Looking at the fair value changes for H1, EUR 6.2 million uplift. Our own funds across the board contributed positively, EUR 6.6 million, 4.5% fair value uplift, so on an annual basis, a 9% uplift.

Speaker #2: This is, overall, a trend that we expect to continue also over the coming years: on average, fund investment distributions from exits being done clearly exceeding the new capital drawn to meet fund commitments, and as a whole, that will generate a positive cash flow for the group.

Speaker #2: Looking at the fair value changes for the first half year—€6.2 million uplift—our own funds across the board contributed positively. €6.6 million, a 4.5% fair value uplift, so on an annual basis, a 9% uplift.

Pia Kåll: External funds, more or less flat, slightly negative, -1.1% fair value development, taking down the total. Combining this, looking at the comparable EBIT development, EUR 10 million for H1, strong contributors, fee profit growth, and fair values. Still fair value change is somewhat below those of last year, meaning that we end at EUR 10 million EBIT instead of last year's EUR 10.6 million, but really fee profit continuing to drive good growth. Our balance sheet and our liquidity continue strong. Equity ratio at 58.5% and cash and other short-term financial assets at EUR 50 million, with in addition undrawn credit limits on top of EUR 20 million means that we have a strong liquidity to support growth and growth initiatives and financial stability to continue to pursue our strategy.

Speaker #2: balance sheet and our liquidity continues strong, equity ratio at 58.5%, and cash and other short-term financial assets at 50, within addition Andron credit limits on top of 20 million, means that we have a strong liquidity to support growth and growth initiatives, and financial stability to continue to pursue our strategy.

Speaker #2: Looking then more ahead, if we start by looking at the external market environment, what we saw during the first half of this year is continued positive signs in the market, with both the fundraising market turning, driven by the fact that the transaction market continued to show positive signs of revival.

Pia Kåll: Looking more ahead, if we start by looking at the external market environment, what we saw during H1 of this year is continued positive signs in the market of both the fundraising market turning, driven by the transaction market continued to show positive signs and revival. Overall long-term forecasts are expecting assets under management in European real asset funds to continue to grow above 10% per year. In an environment that we have at the moment with geopolitical uncertainty, economic uncertainty, real asset investments are strongly positioned. Investments like infrastructure, real estate, timberland, offering to investors investment that are diversifying and more stable, more controllable outcomes than many other asset classes. In addition, at the moment, when we're seeing a disruption from artificial intelligence in the market, disrupting both business models but also valuations.

Speaker #2: Overall, long-term forecasts are expecting assets under management in European real asset funds to continue to grow above 10% per year. And in an environment that we have at the moment, with geopolitical uncertainty and economic uncertainty, real asset investments are strongly positioned. Investments like infrastructure, real estate, and timberland offer investors diversification and more stable, more controllable outcomes than many other asset classes.

Speaker #2: In addition, at the moment, when we're seeing a disruption from artificial intelligence in the market—disrupting both business models but also valuations—here again, when we look at real assets specifically, we expect to see positive effects for more efficient asset management opportunities. But at the same time, on average, there may be less negative impact, as AI is not able to replace real assets like real estate properties or infrastructure.

Pia Kåll: Here again, when we look at real assets specifically, we expect to see positive effects for more efficient asset management opportunities, but at the same time, on average, less negative impacts as AI is not able to replace real assets like real estate properties or infrastructure, net-net expecting more of a positive impact there. Looking at the market from a geographical position, the Nordics and Europe in general are well-positioned. The Nordics with stable political environment and stable economies are attracting capital basically from all continents at the moment when investors are looking for places to invest long-term capital. We continue to deliver on our growth strategy towards our strategic objective to reach EUR 10 billion of assets under management by the end of 2027 and implementing our strategic initiatives through the CapMan Wins programs.

Speaker #2: So, net-net, expecting more of a positive impact there. Also, looking at the market from a geographical position, the Nordics and Europe in general are well positioned. The Nordics, with stable political environments and stable economies, are attracting capital basically from all continents at the moment, when investors are looking for places to invest long-term capital.

Speaker #2: We continue to deliver on our growth strategy toward our strategic objective to reach €10 billion of assets under management by the end of 2027, and implementing our strategic initiatives through the CapMan WINS programs.

Speaker #2: Reaching our €10 billion assets under management target by the end of 2027 requires, on average, a 16% growth in AUM during 2026 and 2027. Over the past three years, with quite heavy market headwinds, we have been able to grow 20% per year, and now at €7.7 billion, we are on a good track to reach our objective.

Pia Kåll: Reaching our EUR 10 billion assets under management target by end of 2027 requires on average a 16% growth in AUM during 2026 and 2027, whereas over the past three years, with quite heavy market headwinds, we have been able to grow 20% per year. Now at EUR 7.7 billion, we are on a good track to reach our objective. If we look at the contribution from different investment areas in more detail and the ongoing fundraisings, which will take us to our objective when we reach the target sizes there. When we look at real estate, we see significant contribution.

Speaker #2: And if we look at the contribution from different investment details and the ongoing fundraisings, which will take us to our objective when we reach the target sizes there, when we look at real estate, significant contribution. Here we have the Nordic Real Estate Core Fund, with now the first close held and the target size at €750 million.

Pia Kåll: Here we have the Nordic Real Estate IV fund with now the first close held and the target size at EUR 750 million. In addition, we have our open-ended funds directed at institutional investors that continue to attract capital, and on average, we have been raising some EUR 300 million per year into these funds. In Infrastructure, important milestone now with the third fund first close in place and a target size of EUR 750 million for that fund. In natural capital, we held the first close in the next flagship fund, European Forest IV fund, in December, and continue fundraising to clean capital now in Q2, and also see good momentum and investor appetite for that fund going forward. Within real asset debt, Caerus Eight fundraising continues. Target size at final close, some EUR 500 million.

Speaker #2: In addition, we have our open-ended funds directed at institutional investors that continue to attract capital, and on average, we have been raising about €300 million per year into these funds.

Speaker #2: In Infrastructure, an important milestone now with the third fund first close in place, and a target size of €750 million for that fund. In Natural Capital, we held the first close in the next flagship fund, European Forest IV Fund, in December, and continue fundraising to key capital now in Q2, and also see good momentum and investor appetite for that fund.

Speaker #2: Going forward, within real asset debt, CARUS 8 fundraising continues. The target size at final close is approximately €500 million. We are also going into infrastructure debt, where fundraising and investor discussions will be started towards the end of this year.

Pia Kåll: Now we are also going into Infrastructure Debt where fundraising and investor discussions will be started towards the end of this year. Within private equity and wealth, our wealth segment, and especially the IP programs and other wealth products, have on average taken in some EUR 200 million of new assets under management per year. During H1, also continuing that pace with a capital intake of roughly EUR 100 million. In addition, Nest IV, Special Situations II in fundraising, and Growth IV planning for fundraising when we come into next year. Taking a deeper look at the two important real estate and Infra first closes that we held in June. Nordic Real Estate IV is the fourth vehicle in our value-add fund series, and we held a first close there on 17 June, supported by both existing and new international institutional investors.

Speaker #2: Within private equity and wealth, our Wealth segment—and especially the IP programs and other wealth products—has on average taken in some €200 million of new assets under management per year, and now during the first half, is also continuing that pace with a capital intake of roughly €100 million.

Speaker #2: In addition, Nest 4 Special Situations 2 in fundraising, and Growth 4 planning for fundraising when we come into next year. Taking a deeper look then at the two important Real Estate and Infra first closes that we held in June.

Speaker #2: So, Nordic Real Estate 4 is the fourth vehicle in our value-add fund series, and we held a first close there on the 17th of June, supported by both existing and new international institutional investors.

Speaker #2: The fund is well positioned, and the timing is very good for this fund to take advantage of the attractive Nordic real estate market with the repricing that we have seen and attractive pockets of investment opportunities. The fund has already secured the option for its first deal—a compelling residential project in Copenhagen—and we also have several other attractive opportunities in the pipeline, so I expect to deploy capital very fast in this fund.

Pia Kåll: The fund is well-positioned, the timing is very good for this fund to take advantage of the attractive Nordic real estate market with the repricing that we have seen and attractive pockets of investment opportunities. The fund has already secured the option for its first deal, a compelling residential project in Copenhagen. We also have several other attractive opportunities in the pipeline. Expect to deploy capital very fast in this fund. Target size, as said, EUR 750 million, which we expect to reach during 2027. In Nordic Infrastructure III, it is the third vehicle continuing our successful infrastructure investment focus mid-market Nordic investments. Here we held a first close on 24 June. Strong momentum, strong appetite for the fund.

Speaker #2: Target size, as said, is €750 million, which we expect to reach during 2027. In Nordic Infrastructure III, it's the third vehicle, continuing our successful infrastructure investment focus on mid-market Nordic investments. Here, we held a first close on the 24th of June. There's strong momentum, strong appetite for the fund, and the first close was supported by more than 20 institutional investors, including both Nordic and international ones. Especially on the international side, several investors have already reserved capital for further commitments during the year as the fundraising continues.

Pia Kåll: The first close was supported by more than 20 institutional investors with both Nordic and international ones, and especially on the international side, several investors who have already reserved capital to further commitments during the year when the fundraising continues. Also here, a strong, attractive investment pipeline in the market and the fund in a position to make first investments still during this year. Building on the strong momentum here, we expect to reach the target size of EUR 750 million also here during 2027. Looking at the portfolio then, value creation has continued strong across our investment areas and funds, transaction activity has remained high. 10 new investments during H1, spanning across real estate, growth, infrastructure, and natural capital. When it comes to the exits, several very successful exits.

Speaker #2: Also here, a strong, attractive investment pipeline in the market, and the fund in a position to make first investments still during this year. Building on the strong momentum here, we expect to reach the target size of €750 million also here during 2027.

Speaker #2: Looking at the portfolio, then, value creation has continued strong across our investment areas and funds. Also, transaction activity has remained high. We made 10 new investments during the first half of the year, spanning across real estate, growth, infrastructure, and natural capital.

Speaker #2: When it comes to the exits, several very successful exits—in the first quarter, we announced the Valokuitunen exit from the Infra One fund, which closed now in July. And during the second quarter, the Nordic Real Estate III fund had excellent exits, both in Finland and in Sweden.

Pia Kåll: In Q1, we announced Valokuitunen exit from the Infra I fund, which closed now in July. During Q2, Nordic Real Estate III fund doing excellent exits both in Finland and in Sweden. The second growth fund exiting Silmäasema in June. A couple of more words around Silmäasema, which is a stellar example of the value creation we do in our growth investment area, supporting entrepreneurs in driving growth in their businesses. In June this year, the fund signed an agreement of the sale of Silmäasema to Terveystalo. During our ownership period, the company developed into a market leader in its sector in vision and eye healthcare in Finland, and also showed very strong financial development.

Speaker #2: And the second growth fund exiting Silmäasema in June. And a couple more words about Silmäasema, which is a stellar example of the value creation we do in our growth investment area, supporting entrepreneurs in driving growth in their businesses.

Speaker #2: So, in June this year, the fund signed an agreement for the sale of Silmäasema to Terveystalo. During our ownership period, the company developed into a market leader in its sector in vision and eye healthcare in Finland.

Speaker #2: And also showed very strong financial development, growing clearly above the market rate. Average revenue growth was 16% per year, which means that revenue doubled during our ownership period. At the same time, profit quadrupled, so very strong, and even stronger, profit development than revenue development.

Pia Kåll: Growing clearly above the market rate, average revenue growth 16% per year, which means that revenue doubled during our ownership period and at the same time, profit quadrupled. Very strong, and even stronger profit development than revenue development. A school book example of the type of companies our growth strategy is supporting. In addition to the value creation in our funds, we are also continuing to develop our own operations, building scalable operations, and systematically now deploying AI automation and technology across our platform operations. We have, over the past year, had several development initiatives that are now being implemented to, on one hand, enable scalable revenue growth, being able to manage more assets under management with the same platform resources. That way, also driving effectiveness, efficiency, and cost savings by streamlining our operations and automating a lot of manual work steps.

Speaker #2: And a textbook example of the type of companies our growth strategies are supporting. In addition to the value creation in our funds, we are also continuing to develop our own operations, building scalable operations, and systematically now deploying AI automation and technology across our platform operations.

Speaker #2: Over the past year, we have had several development initiatives that are now being implemented to, on one hand, enable scalable revenue growth—being able to manage more assets under management with the same platform resources—and, that way, also drive effectiveness, efficiency, and cost savings by streamlining our operations and automating a lot of manual work steps.

Speaker #2: Here, the target is to really be able to keep platform costs, as such, on a more or less flat basis, even if we, under this strategy period, double our assets under management. That way, with growing AUM, we can significantly grow the fee profit margin.

Pia Kåll: Here, the target is to really be able to keep Platform cost as such on a more or less flat basis, even if we, under this strategy period, double our assets under management. That way, with growing AUM, growing fee profit margin significantly. Sustainability also continues to be an integral part in all of our operations, both in our own and in our funds, preparing our assets for resilience in the current market, and that way also creating financial returns. This work also recognized in international benchmarks, where we continue to improve our scores, and in 2025 already reached stellar scores across our funds with four or five-star ratings in the international invest ratings. Also being recognized by the ISS ESG benchmark, where we are among some 180 global asset manager ranked in the first decile.

Speaker #2: Sustainability also continues to be an integral part of all our operations, both in our own company and in our funds. We are preparing our assets for resilience in the current market and, in that way, also creating financial returns.

Speaker #2: This work is also recognized in international benchmarks, where we continue to improve our scores. In 2025, we have already reached stellar scores across our funds, with 405 star ratings in the international aggregated ratings.

Speaker #2: And also being recognized by the ISS Stocks Benchmark on ESG, where we are among some 180 global asset managers ranked in the first decile.

Speaker #2: Continuing on this path of implementing and executing on our growth strategy, we are well positioned for continued profitable growth. Looking at our strategic objectives of €10 billion by 2027 in assets under management, we are now at €7.7 billion. Fee income will follow assets under management development, and here we are also now, if we look at that on a last 12-month basis, at €63 million and continuing to grow from last year.

Pia Kåll: Continuing on this path of implementing and executing on our growth strategy, we are well-positioned for continued profitable growth. Looking at our strategic objectives of EUR 10 billion by 2027 in assets under management, we are now at EUR 7.7 billion. Fee income will follow assets under management development. Here we also know if we look at that last 12-month basis at EUR 63 million and continue growing from last year. Fee profit growing even faster as our scalability initiatives are coming through in the numbers, and continued fee profit margin improvement expected also going forward. A recap of our long-term financial objectives here at the end. Revenue growth, target to grow above 15% per year for H1, now at 16%, exceeding that. Return on equity about 20%, we were at 7% at the end of June. Equity ratio exceeding our target of 59%.

Speaker #2: Fee profit is growing even faster, as our scalability initiatives are coming through in the numbers, and continued fee profit margin improvement is expected also going forward.

Speaker #2: A recap of our long-term financial objectives: here at the end, our revenue growth target was to grow above 15% per year for the first half. We are now at 16%, exceeding that.

Speaker #2: Return on equity is about 20%. We were at 7% at the end of June. The equity ratio is exceeding our target at 59%. For this year, the AGM has made a decision on a €0.12 per share dividend, of which half has already been paid.

Pia Kåll: For this year, the AGM has made a decision on a EUR 0.12 per share dividend, of which half has already been paid. When it comes to the outlook for the year, it remains unchanged. We estimate assets under management to grow and also fee profit to continue to grow compared to last year. Thank you.

Speaker #2: When it comes to the outlook for the year, it remains unchanged. We estimate assets under management to grow, and also fee profit to continue to grow compared to last year.

Speaker #2: Thank you.

Speaker #1: Thank you very much, Pia. We also welcome Atte Rissanen to the stage, CFO of CapMan. So let's start with questions from the audience here.

Charlotte Wessman: Thank you very much, Pia. We also welcome Atte Rissanen to the stage, CFO of CapMan. Let's start with questions with the audience here, please.

Speaker #1: Please.

Speaker #3: Thank you.

Jaakko Tyrväinen: Thank you. Good morning, Jaakko Tyrväinen from SEB. At least to me, the fee margin was perhaps somewhat surprisingly down during the quarter compared to the previous quarters. Was this just because of the timing, as you explained, Pia, timing of the exits and then the fact that the new AUM came in in the very end of the quarter? Or is there something else in this quarter-on-quarter volatility?

Speaker #4: Good morning, Jaakko Turvainen from SEB. At least to me, the fee margin was perhaps somewhat surprisingly down during the quarter compared to previous quarters.

Speaker #4: Was this just because of the timing, as you explained, Pia—the timing of the exits, and then the fact that the new AUM came in at the very end of the quarter?

Speaker #4: Or is there something else in this quarter-on-quarter volatility?

Speaker #2: Yeah, I can take that then. Pia, feel free to expand after my answer, but yes, basically, I would say that you are hitting the nail on the head.

Atte Rissanen: Yeah, I can take that then. Pia, feel free to expand after my answer. Yes, basically, I would say that you are hitting the nail on the head. H1 fee income grew by 16%, fee profit grew by 28%. If you look at Q2, we had very good exit activity. We had exits from Infra, we had the PDSVISION exits materializing. Basically, exits eroding the fee base, but on the other hand providing the very good cash flow from investments that we saw during Q1, the fund investments generating EUR +10 million cash flow for us during Q2 or during H1. Of course, that coupled with the fact that the very good AUM intake was at the end of the quarter. That means that it doesn't generate fee income yet during Q2, but will generate some EUR 5 million on an annual basis going forward.

Speaker #2: So, in H1, fee income grew by 16%, and fee profit grew by 28%. But then, if you look at Q2, we had very good exit activity.

Speaker #2: We had exits from Infra, we had the PDS exits materializing—basically, exits eroding the fee base but, on the other hand, providing the very good cash flow from investments that we saw during Q1.

Speaker #2: The fund investments generated a €10 million positive cash flow for us during Q2 or during H1. And of course, that, coupled with the fact that the very good AUM intake was at the end of the quarter, means that it doesn't generate fee income yet during Q2, but will generate some €5 million on an annual basis going forward.

Speaker #2: So, that is basically what you're seeing here. And also, when you look at the cost side, you can see personnel expenses are basically flat compared to Q1, as are the other operating expenses.

Atte Rissanen: That is basically what you're seeing here. Also when you look at the cost side, you could see personnel expenses basically flat compared to Q1. On the other operating expenses, of course, there's some AUM-linked placement agencies, for example, and we did have some costs that we've taken now in relation to the establishment of the new Infrastructure Debt investment area. Overall, I'd say the main point is that we have good visibility now going forward with the AUM that we've raised and as well. That means good visibility on the fee income, good visibility on the cash flow generation, and also hopefully carry during H2.

Speaker #2: Of course, there are some AUM-linked placement agent fees, for example. We did have some costs that we've taken now in relation to the establishment of the new infra debt investment area.

Speaker #2: But overall, I'd say the main point is that we have good visibility now going forward with the AUM that we've raised. As well, that means good visibility on the fee income, good visibility on the cash flow generation, and also hopefully carry during H2.

Speaker #4: Very good. You explained a lot and you already answered a couple of my next questions. But you noted that the real asset is the place to be under AI.

Jaakko Tyrväinen: Very good. Explains a lot and you answered already to my couple of next ones. You noted that the real asset is the place to be under the AI disruption. Is this widely a recognized thing also among the investors? On the other hand, you have also the growth fund. Have you seen the AI revolution causing pressure on the fair values over there?

Speaker #4: IT disruption is this widely kind of a recognized thing also among the investors, and on the other hand, you also have the growth fund.

Speaker #4: Have you seen the AI revolution causing pressure on the fair values over there?

Speaker #3: Yes, thank you. So let's take it in two parts. To address the question as it is, I would say that among investors, what we see is that some of them are clearly diversifying by going into real assets because they are less volatile.

Pia Kåll: Yes, thank you. Let's take it in the two parts, the question as it is. I would say among investors, what we see is some of them clearly diversifying by going into real assets because it is less volatile, and it is easier to predict the outcomes when you have real assets that are backing the investments. At the same time, I think we should be humble and say we are in the beginning of a disruption. Exactly how it will play out, I don't think anyone has the crystal ball. Overall, the fact is that you cannot replace physical properties or infrastructure or forest with AI.

Speaker #3: And it is easier to predict the outcomes when you have real assets backing the investments. At the same time, I think we should be humble and say we are at the beginning of a disruption, so exactly how it will play out—I don't think anyone has a crystal ball. But overall, the fact is that you cannot replace physical properties, infrastructure, or forests with AI.

Speaker #3: So, in that sense, it is a more stable asset class, and investors are clearly also seeing that when they look at their overall portfolios.

Pia Kåll: In that sense, it is a more stable asset class, and investors are clearly also seeing that when they look at their overall portfolios, and it goes both for the equity and the debt side, where our debt side is also focused on real assets. When it comes to growth and our private equity portfolio, there what we've seen so far is when it comes to the peer valuation and the peer group valuations, there you clearly see an impact from AI, especially on the software side. At the same time, when we look at the portfolio development, it is fair to say that not all software companies are reacting the same way, and some will be very much needed also in an AI era. There we have seen continued very strong operational performance in our portfolio.

Speaker #3: And it goes both for the equity and the debt side, where our debt side is also focused on real assets. When it comes to growth and our private equity portfolio, there what we've seen so far is, when it comes to the peer valuation and the peer group valuations, you clearly see an impact from AI, especially on the software side.

Speaker #3: At the same time, when we look at the portfolio development, it is fair to say that not all software companies are reacting the same way, and some will be very much needed also in an AI era.

Speaker #3: And there, we have seen continued very strong operational performance in our portfolios. So the impact so far has been solely valuation benchmarks.

Pia Kåll: The impact so far has been solely from the external peer valuation benchmarks.

Speaker #4: Very good, thanks. Then the final one: the new funds that are seeking clearly higher fund size overall in the final closing. Have you seen the average ticket size increasing in the first closing compared to those of their predecessors?

Jaakko Tyrväinen: Very good, thanks. The final one. On the new funds that are seeking clearly higher fund size overall in the final closing, have you seen the average ticket size increasing in the first closing compared to those predecessors?

Pia Kåll: We clearly see ticket sizes increasing, we see that we have investors who have been following us now for several vintages who now see that the target sizes that we have are such that they can deploy the type of tickets that they want to deploy per fund. We have previously been too small, but they have liked the investment strategies we've had, and now they are clearly interested in this fund and joining this fund. That's why we also attract new investors into these funds, because they are international investors for whom you need to be above EUR 700 million for them to even consider investing.

Speaker #3: We clearly see ticket sizes increasing, and we see that we have investors who have been following us now for several vintages, who now see that the target sizes that we have are such that they can deploy the type of tickets that they want to deploy per fund.

Speaker #3: And we have previously been too small, but they have liked the investment strategies we've had, and now they are clearly kind of interested in these funds and joining these funds.

Speaker #3: So that's why we also attract new investors into these funds, because they are international investors for whom you need to be above €700 million for them to even consider investing.

Speaker #3: So, we have both new investors coming in with large tickets that way, and we have existing investors who have maybe cut their ticket sizes somewhat in previous funds to match the sizes that we've had, and who are now increasing ticket sizes.

Pia Kåll: We have both new coming in with large tickets that way, and we have existing investors who have maybe cut somewhat their ticket sizes in previous funds to match the sizes that we've had and who are now increasing ticket sizes. From both of those angles, we see average ticket sizes going up and also new investors really looking at the funds.

Speaker #3: So, from both of those angles, we see average ticket sizes going up, and also new investors really looking at the funds.

Speaker #4: Excellent, thank you all from my side. Yes, good morning. Sauli Villén from Interes. About the headcount—the headcount came a tad down during Q2.

Jaakko Tyrväinen: Excellent. Thank you all from my side.

Sauli Vilén: Yes, good morning. Sauli Vilén from Inderes. About the headcount. The headcount came a tad down during Q2. Is this just a quarterly volatility, or do you actually see that the headcount should flat out now? I guess it's one of the key drivers behind the flat cost base you're aiming.

Speaker #4: Is this just like a quarterly volatility, or do you actually see that the headcount should flatten out now? I guess it's one of the key drivers behind the flat cost base you're aiming for.

Pia Kåll: Between these quarters is just normal fluctuation. Here thinking forward, where the effectiveness and the automation really takes hold now, the first wave of implementation, that is in the platform. There we expect to be able to keep the cost. Of course, when it comes to investment operations, that is still somewhat people dependent. You need a certain amount of individuals, investment professionals for target assets. There it will not stay flat. Clearly, there's scalability also there. Now quarter-on-quarter, no dramatic changes. It's just fluctuation.

Speaker #3: Between these quarters, it's just normal fluctuation. And here, thinking forward, where the effectiveness and the automation really take hold now—the first wave of implementation, that is in the platform.

Speaker #3: And there we expect to be able to kind of keep the cost. Of course, when it comes to investment operations, it’s still somewhat people-dependent, that you need a certain amount of individual investment professionals per target asset.

Speaker #3: So there it will not stay flat, but clearly the scalability is also there. But now, quarter on quarter, no dramatic changes; it's just fluctuation.

Speaker #4: And then you referred to the flat cost-based 27 or flat-ish cost-based, I guess, on 27 or one, so your CEO review. Just to clarify on that, does that also include bonuses and possible, like, the distributor fees on the fundraisings, or are those excluded from that?

Sauli Vilén: You referred to the flat cost base, or flattish cost base, I guess, on 2027 or once your CEO review. Just to clarify on that, does that also include bonuses and possible distributor fees on the fundraisings, or are those excluded on that?

Speaker #2: Yeah, just to clarify, I think Pia was mainly referring to the platform cost staying flat. So, basically, the support organizations—of course within the investment teams—when the operations grow, there are variable items that grow in line with that. So, for example, variable compensation; those will not stay flat when the top line goes forward. But the fee margin will improve notably.

Atte Rissanen: Just to clarify, I think Pia was referring to the platform cost staying flat, so basically the support organizations. Of course, within the investment teams, when the operations grow, there are variable items that grow in line with. For example, variable compensation, those will not stay flat when top line goes forward. The fee margin will improve notably. We're not saying that the 2027 cost base will be that of the entire group cost base will not be at the 2025 level.

Speaker #2: We're not saying that the '27 cost base will be that of the entire group. The cost base will not be at the '25 level.

Speaker #4: Okay, that's clear. Then about the your own commitments and on the for the real estate and the infra, you both on both, you made roughly 10 million commitment on those funds.

Sauli Vilén: That's clear. About your own commitments for the real estate and the infra, on both you made roughly EUR 10 million commitment on those funds. Do you see that that's the amount, or do you see you need to top that up on going forward?

Speaker #4: Do you see that that's the amount, or do you see you need to top that up going forward?

Speaker #3: For these specific funds, this is the amount that we make our house commitments in the first closes. And then, as we said before, fund by fund, we determine the house commitment, but that is a good rule of thumb for the large funds.

Pia Kåll: For these specific funds, this is the amount that we make our house commitments in the first closes. As we've said before, fund by fund, we determine the house commitment. That is a good rule of thumb for the large funds.

Speaker #4: Okay, that's clear. Then on the Kairos AUM, if you reflect back over the last 12 months or so, when you have had Kairos under your umbrella, the AUM has been flat.

Sauli Vilén: Okay, that's clear. On the CAERUS AUM, if you reflect back for the last 12 months or so, when you have had the CAERUS under your umbrella, the AUM has been flat. Has that been in line what you were expecting? If I recall correctly, they still have a lot of dry powder, which could have led to a growth in AUM.

Speaker #4: Has that been in line with what you were expecting? If I recall correctly, they still have a lot of dry powder, which could have led to growth in the AUM.

Speaker #3: It is in line with our expectations. So like you say, in Kairos, fee is paid on the deployed capital and that's also what we count in remaining flat in this market actually means that there's been a good a lot of good positive development underneath in the portfolio because normally with debt maturing at quite kind of certain kind of positions in time, if you don't get new commitments in or kind of raise more capital, it will continuously go down faster than maybe in other asset classes.

Pia Kåll: It is in line with our expectations. Like you say, in CAERUS, fee is paid on the deployed capital, and that's also what we count in our AUM. It remaining flat in this market actually means that there's been a lot of good positive development underneath in the portfolio, because normally with debt maturing at quite certain positions in time. If you don't get new commitments in or raise more capital, it will continuously go down faster than maybe in other asset classes. Here what has been happening is that we have prolonged and extended and found new financing solutions or provided new financing solutions for several assets in the portfolio, which has kept the AUM flat and in that sense growing. Fundraising is ongoing and increasing momentum and increasing investor appetite.

Speaker #3: But here, what has been happening is that we have prolonged and extended, and found new financing solutions, or provided new financing solutions, for several assets in the portfolio, which has kept the AUM flat and, in that sense, kind of growing.

Speaker #3: And then fundraising is ongoing and increasing momentum and increasing kind of investor appetite. But at the same time, as was expected, European real estate debt investors are still monitoring the market, and they are now starting to look for new commitments but are still cautious. But the dialogues are good.

Pia Kåll: At the same time, as was expected, European real estate debt investors are still monitoring the market, and they are now starting to look for new commitments but are still cautious. The dialogues are good.

Speaker #4: Then on the infra debt, you obviously have had some time now to test the market, so to speak, to talk to potential investors. How confident are you that you actually have an appetite there for the new up-and-coming fund? Since obviously, it's not like your home field where you're trying to raise the capital—you're raising it from Central Europe, if I recall correctly.

Sauli Vilén: On the Infrastructure Debt, you obviously have had some time now to test the market, so to speak, to talk with the potential investors. How confident you are that you actually have an appetite there for the new up-and-coming fund? Obviously, it is not like your home field where you are trying to raise the capital. You are raising it from Central Europe, if I recall correctly.

Speaker #3: So it's the to be fair, with the kind of the head for that investment area joining during Q1, it's not been that many months to test the market and yet and get a view on it.

Pia Kåll: To be fair, with the head for that investment area joining during Q1, it has not been that many months to test the market and get a view on it. Initial responses and initial feeling is positive. It is true that for CapMan, raising debt capital in Central Europe is new. On the other hand, if we think of the team we have in CAERUS and now in Infrastructure Debt with René Kass joining and with Michael Morgenroth continuing to lead CAERUS, this is what they have been doing for the last 20 or so years in specifically that market. What we see is that when you talk about mid-market Infrastructure Debt investments into investments that support resilience of the European economy or a climate transition, decarbonization transition, investment need is huge, and traditional banks will not be able to cover it.

Speaker #3: Initial responses and initial feeling is positive. It is true that for CapMan, raising debt capital in Central Europe is new, but then, on the other hand, if we think of the team we have in Kairos and now in infra debt—with René Cassis joining, and with Michael Morgan-Roth continuing to lead Kairos—this is what they have been doing for the last 20 or so years, specifically in that market.

Speaker #3: And what we see is that, when you talk about mid-market infra debt investments—into investments that support the resilience of the European economy or the climate transition, decarbonization transition—the investment need is huge.

Speaker #3: And national kinds of debt will not cover—traditional banks will not be able to cover it. And we see Central European investors really seeing a sweet spot here when we talk mid-market, this type of debt solutions.

Pia Kåll: We see Central European investors really seeing a sweet spot here when we talk mid-market, this type of debt solution. In that sense, good start, and we continue to have investor discussions and plan to launch then the formal fundraising towards the end of the year.

Speaker #3: So, in that sense, we continue to have investor discussions and plan to launch the formal fundraising toward the end of the year.

Speaker #4: Okay. Then, final one for me, about your fees in Q2. If—at least my interpretation was that transaction-based fees, like the non-continuous fees, were kind of at the lower end in Q2. Is this the right way to look at the figures?

Sauli Vilén: Okay. Final from me. About your fees in Q2, at least my interpretation was that a transaction-based fees, like the non-continuous fees, were at the lower end in Q2. Is this the right way to look at the figures?

Speaker #2: Yes, it is the right way to look at the figures. There were no such transaction-type fees. So there's always some variation between quarters, and now during Q2, I think it's fair to say it was exactly on the lower end.

Atte Rissanen: Yes, it is the right way to look at the figures. There were no sort of these transaction type of fees. There's always between quarters some variation, and now during Q2, I think it's fair to say it was exactly on the lower end.

Speaker #4: Okay, that's clear. Thank you.

Sauli Vilén: Okay, that's clear. Thank you.

Speaker #3: Okay, and then an additional question on Nordic real estate for Infrastructure III. Can you break down the capital intake in Real Estate IV and Nordic Infrastructure III?

Charlotte Wessman: Okay. An additional question on Nordic Real Estate IV and Infrastructure III. Can you break down the capital intake in Real Estate IV and Nordic Infrastructure III? How has the first closed capital intake in these funds developed relative to expectations? What are the interest levels for these funds looking ahead?

Speaker #3: How has the first close capital intake in these funds developed in relation to expectations? And what are the interest levels for these funds looking ahead?

Speaker #3: So, when it comes to the exact breakdown, we have not published that one, but I think you get a good feel for it. It's fair to say that out of the €440 million that we raised in Q2, the clear majority went into these two funds and then the Forest 4 fund.

Pia Kåll: When it comes to the exact breakdown we have not published that one, but I think you get a good feel for it. It's fair to say that out of the EUR 440 million that we raised in Q2 here, majority went into these two funds and then the Forest IV fund. What was the other part of the question?

Speaker #3: And what was the other part of the question? How has it developed related to expectations? So going very much in line with expectations. So when it comes to infrastructure 3, our target was when we set out and the infra team set out into the fundraising was to hold the first close now in June, which day kept more or less exactly on the day kept to their schedule.

Charlotte Wessman: How has it developed related to expectations?

Pia Kåll: Going very much in line with expectations. When it comes to Infrastructure III, our target was when we set out and the Infra team set out into the fundraising was to hold a first close now in June, which they kept more or less exactly on the day, kept to their schedule. In Nordic Real Estate IV, the last couple of years have been more challenging in the market. Say during the last half year, the visibility we've had and with the understanding from the investors that we had also this first close very much in line with expectations. Also in both funds, the continuing fundraising now and the investors doing due diligence on the funds also they're very much in line with expectations.

Speaker #3: In Nordic real estate 4, the last couple of years have been more challenging in the market, but say during the last half year, the visibility we've had and with the understanding from the investors that we had also this first close very much in line with expectations and also in both funds, the continuing fundraising now and the investors doing due diligence on the funds also they're very much in line with expectations.

Speaker #4: Thank you. Those were the questions that we have for today, so thank you very much, everyone. We say goodbye and wish everyone a good day.

Charlotte Wessman: Thank you. That was the questions that we have for today. Thank you very much, everyone, and we say goodbye and wish everyone a good day. Thank you.

Speaker #4: Thank you.

Speaker #3: Thank you.

Pia Kåll: Thank you.

Sauli Vilén: Thank you.

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