New private equity fund targets growth potential in Danish SMEs

21. December - 2012

The buy-out fund CataCap, launched today, aims to catalyse growth among Danish SMEs with a potential for long-term business development and significant increase in earnings. The formula is to exercise proactive ownership by providing a combination of growth capital, operational skills and a distinct approach to portfolio company development.

After several years of funding drought in the Danish market, a large number of SMEs hold a vast and unexploited development potential. CataCap, the newly established Danish buy- out fund, will execute its investment strategy from this starting point. CataCap has raised DKK 500 million in its 1. closing which will be deployed to boost SMEs enabling them to achieve their growth potential.

“Our ambition is to act as a catalyst for Danish SMEs and to realise the full growth potential in the companies we team up with. A distinctive focal point for us is to increase business productivity and to ensure sustainable step changes,” says Vilhelm Hahn-Petersen, who co-founded CataCap together with his brother Jens Hahn-Petersen and Peter Ryttergaard.


Dedicated and proactive ownership to boost portfolio companies

The three founders and partners of CataCap have many years of operational and executive management experience. They are particularly dedicated to the operational aspects of the businesses they invest in.

“All private equity funds talk about active ownership, but we take the concept to its logical conclusion. To us, ownership is not just about contributing risk capital and attending board meetings. It is also about contributing the right skills and developing business leaders through targeted sparring,” says Vilhelm Hahn-Petersen.

“We have developed a coherent, practical and systematic approach, which we apply to all our investments. That is our unique hallmark. We intend to develop companies in close cooperation with management and often with the existing owners as co-investors,” he continues.


High-profile investors supporting the CataCap model

In addition to the three founding partners of CataCap, the group of investors include the large Danish institutional investors Dansk V√¶kstkapital, Danica Pension and L√¶gernes Pensionskasse (Medical Doctors’ Pension Fund) and a number of private investors. CataCap is pleased with the support at a time of fierce competition to attract investors.

“We are delighted to obtain this stamp of approval assigned to our business model by the commitments of such high-profile investors. We have reached our first closing target of DKK 500 million, and we aim to raise additional capital for the fund in a second closing, which we will continue to channel towards SMEs to create value for their benefit and for the benefit of our investors,” says Vilhelm Hahn-Petersen.

CataCap has appointed three Operating Partners and has built a strong network of experienced business leaders, who will act as advisers and active board members of the portfolio companies. In addition, three advisory firms have been selected as Development Partners to assist CataCap by making specialist expertise and resources available to the portfolio companies during their development phase.


CATACAP

Vilhelm Hahn-Petersen
Partner

Jens Hahn-Petersen
Partner

Peter Ryttergaard
Partner

Press contact
Vilhelm Hahn-Petersen, tel.: 26 32 64 20


About CataCap

CataCap invests in Danish SMEs that hold a significant development potential and have an innovative business model with long-term sustainability.

CataCap’s business concept is to act as a catalyst for sustainable step changes through a systematic and consistent approach to strengthening business development, operational processes and leadership development in active interaction with management and employees of the portfolio companies.

CataCap operates through an extended organisation in which CataCap’s own employees are supplemented by Operating Partners, Development Partners and Executive Advisors. The teams for each investment are recruited from this group.

CataCap is a proactive and dedicated owner. The systematic hands-on approach to developing CataCap’s businesses is intended to increase both the speed and sustainability of business step changes, thereby creating long-term value for all stakeholders as well as stable excess returns for investors.


The people behind CataCap

The brothers Vilhelm and Jens Hahn-Petersen took the first steps to establish CataCap in the autumn of 2011.

Vilhelm has in-depth experience of strategic and operational management from previous executive positions and board memberships of Danish and international businesses. He has also worked directly with private equity investments for a number of years as partner of a private equity fund.

Jens has been an investment banker throughout his entire career. As an adviser, he has built up extensive experience and skills within strategic research and development as well as corporate acquisitions and divestments. He has advised a number of private equity funds in Denmark and internationally.

In the spring of 2012, Peter Ryttergaard joined as CataCap’s third partner. Peter has extensive private equity experience as well. As CFO of a UK based company he completed a management buy-out together with two UK based private equity funds, thereby gaining direct experience of executing private equity strategies.