Working towards our vision to be the best-performing European private equity
firm by 2020
CapMan’s updated strategy, announced in February 2011, is based on combining the strengths of our entrepreneurial partnerships and all capabilities within CapMan to provide excellent returns to our investors. The key themes in the implementation of our strategy are performance, simplification, agility, and the power of AND.
We initiated several programmes during 2011 to improve individual, team, fund, and Group-level results. Employees are the key to our success, and we reviewed and made significant changes to our performance evaluation criteria and remuneration model. These new structures put a greater focus on strengthening the link between performance and remuneration and supporting our strategic objective of improving performance throughout the CapMan organisation.
Parallel to these changes, we also launched a comprehensive training programme, the CapMan Academy, for all CapMan employees. The programme is designed to support employees in building their competencies as private equity professionals. We have also created tools and models to enhance performance monitoring and cost awareness across the Group.
Our key focus during 2011 was on driving operational efficiency throughout the Group. The most significant long-term decisions taken during the year were the sale of the real estate consulting business and the decision to close down CapMan’s office in Denmark. We also concentrated our Group accounting activities to Finland. In line with our goal of increased simplification, our real estate investment team streamlined its governance model to better match the structure in place within CapMan’s other investment teams.
Our third strategic theme – creating agility – has proved crucial in a market environment that has been, and continues to be, uncertain. Agility is also linked to success in performance and simplification. Good performance will help ensure the success of future fundraisings, which in turn will increase our assets under management and give us greater freedom to operate in a changing market environment. We closely monitor regulatory changes affecting the private equity industry and adjust our operations accordingly.
Developing the power of AND
The most crucial step in our strategy implementation is for all our investment and service teams to utilise and build on the combination of the strengths of our entrepreneurial partnerships and other capabilities within CapMan through what we call the power of AND. To date, we have focused on improving communication and knowledge-sharing between investment teams and how service teams and investment teams interact with each other. Concrete examples of the power of AND include CaPS, a common purchasing scheme for our portfolio companies, and the CapMan Academy, our new Group-wide training programme. In addition, we have launched an extranet service for our portfolio companies’ Boards of Directors to improve communication and information-sharing between individual board members.