CapMan - Expanding offering
CapMan today announced a majority acquisition (51%) of German real estate debt specialist CAERUS. The in our view attractive acquisition already on standalone basis will provide further long-term growth potential and strengthen CapMan’s international presence.
- CAERUS, based in Germany, is a leading manager for real estate debt investments with around EUR 700m of AUM (+~EUR 300m dry powder). CAERUS offers institutional investors access to real estate debt investments through funds and individual mandates across nearly all real estate segments, with a focus on the DACH countries and Benelux-region. CAERUS has seven active funds and since its inception in 2014 has raised EUR 2.6bn. CAERUS fee profit in 2024 EUR 1.7m (2023: 1.7m)
- Ownership structure: CapMan 51%, founder and CEO Michael Morgenroth 49%
- P&L impact: slight positive impact on fee income and fee profit, no effect on outlook
- New investment area: CapMan to launch investment area Real Asset Debt, CEO of CAERUS to be appointed Managing Partner for the investment area.
- Valuation: Debt and cash free valuation of EUR 13m, including potential earn-out. CapMan acquires 51% with up-front consideration of EUR 4.0m and earn-out up to EUR 2.6m. Valuation of 7.6x 2024 fee profit (incl. max earn-out) in our view attractive given fee-based profits and growing market
- Completion: the acquisition is expected to be completed during Q3/2025 after fulfillment of customary closing conditions.
- Rationale: expands CapMan’s presence to new, attractive investment area and broadens international scope.
- Potential: apart from further adding to CapMan’s fee profit base at an attractive price, the new investment area in our view offers potential through accelerating growth through CapMan’s network and broadening the geographic focus of the investment area to the Nordics and establishing a stronger foothold outside Finland.
- CapMan’s targets: acquisition would shift AUM to around EUR 7.0bn, CapMan’s target 10bn during 2027.