It was great to see many PE industry colleagues yesterday at the FVCA - Pääomasijoittajat Fall Seminar 2023! Ilkka Kivimäki from Maki.vc and I were invited to share our thoughts and experiences on international fundraising on stage.
🚀 CapMan has been active in international fundraising for over 20 years, but the internationalisation of our LP base has really accelerated over the recent years. In 2016, our AUM was EUR 2.7bn and only 10% of that was from non-Nordic investors. Since then, we have doubled our AUM to over EUR 5bn and at the same time share of international investors has grown from 10% to 55%.
🌐 I was asked, what are the main differences between fundraising domestically vs internationally? There are a lot of similarities, of course, but some differences as well. To name a few:
⏳ Time. Building PE investor relationships, trust and even brand awareness in new markets takes time, often years. It’s thus important for GPs to start early on. Build a vision where you would like to be with your investor base 2-3 fund vintages ahead, and be patient.
🔐 Product fit. Try to identify investors whose PE program has a good fit with your strategy and offering. While local investors might generally have a bit more flexible mandate to support their local managers, with cross boarder investments institutions often have well defined strategy and mature PE portfolios, and have thus very specific requirements for new GPs who they have often been following for many years.
🌍 Why Nordics? Most of the European institutional investors are very knowledgeable about the Nordic region and local markets, but especially when meeting with non-European investors, one needs to convince them first about the Nordic market opportunity and the benefits of teaming up with a local specialist compared to investing in pan-European or global funds.
“Building Bridges with International LPs in Fundraising” was the topic when Mari Simula from CapMan and Ilkka Kivimäki from Maki.vc took the stage yesterday at the Finnish Venture Capital Association’s Fall Seminar. Big thanks to everyone who joined and FVCA - Pääomasijoittajat for making the event happen!
Photo: FVCA
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