Information on the Target

CapMan Special Situations I fund is investing in two prominent providers of assisted residential care for the elderly, Nonna Group Oy and Aurahovi Oy, with the strategic goal of establishing a leading operator in Finland's residential care sector. Nonna Group, founded in 2020, currently operates five facilities across Rovaniemi, Oulu, Turku, and Kuopio, generating estimated revenue of around €5 million in 2024. Meanwhile, Aurahovi, established in 2017, manages four facilities located in Lieto, Huittinen, Uusikaupunki, and Helsinki, with projected revenue of approximately €4 million for 2024.

Through the merger of these two companies, CapMan aims to create a strong presence in the assisted living market, achieving a nationwide network of nine facilities and approximately 500 apartments dedicated to serving the elderly population.

Industry Overview in Finland

The demand for assisted residential care services in Finland is steadily increasing due to the aging population and the need for diverse support structures for seniors. This sector accommodates individuals whose care requirements exceed the capabilities of traditional home care assistance but who do not necessitate complete round-the-clock supervision. As a rising trend, assisted living is receiving considerable backing from regional welfare strategies linked with Finland's healthcare system.

Government policies are shifting towards the promotion of high-quality, tailored support models that enable seniors to live independently within a community setting. The integration of assisted living facilities into regional welfare frameworks ensures that they remain viable options for elder care, fostering a progressive approach to health and social services.

Moreover, both Nonna Group and Aurahovi exemplify the positive market potential in this field, having garnered high satisfaction rates among clients and demonstrating robust operational foundations. The sector is characterized by its innovative service models that combine residential accommodation with supportive care, thereby enhancing the quality of life for its residents.

Given the growing emphasis on such care structures and positive market trends, the assisted residential care industry in Finland is poised for significant growth, offering numerous opportunities for investors and operators in the years to come.

The Rationale Behind the Deal

The decision to invest in Nonna Group and Aurahovi aligns with CapMan Special Situations' strategy to create a consolidated operator within the Finnish residential care sector that can leverage synergies between the two distinct entities. By merging their resources and expertise, CapMan anticipates establishing a leader in the market that not only addresses the escalating demand for senior care services but also enhances operational efficiency going forward.

The combination of these companies allows for the pooling of knowledge, experience, and best practices, which are essential for promoting sustainable growth in the industry. Furthermore, this merger is expected to generate added value for stakeholders while contributing positively to the community's welfare through improved services for elderly residents.

Information about the Investor

CapMan is recognized as a leading private asset management firm in the Nordic region, with approximately €6.4 billion in assets under management. With decades of experience in private equity, CapMan has cultivated a reputation for creating significant value while investing in various sectors, including real estate, infrastructure, and natural capital.

The firm is actively committed to sustainability, having established greenhouse gas reduction targets in accordance with the Science Based Targets initiative, aiming for net-zero emissions by 2040. With a skilled team of around 200 professionals across multiple locations, CapMan emphasizes a hands-on approach in fostering growth within its portfolio companies and providing innovative solutions to its investors.

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In expert opinion, the investment in Nonna Group and Aurahovi represents a strategically sound move for CapMan given the notable needs of Finland’s elder care sector. The growing demand for tailored assisted living solutions indicates a favorable market trajectory, underpinned by supportive government policies and societal recognition of the importance of quality senior care.

Combining the strengths of both companies creates a robust platform for growth, allowing for the scaling of operations while enhancing service quality. The organizations' solid reputations and high customer satisfaction levels further bolster their potential for long-term success in a competitive landscape.

Moreover, leveraging shared resources will allow the newly formed entity to operate more efficiently and respond effectively to the evolving requirements of elderly care services. If managed correctly, this investment could yield significant returns both financially and socially, establishing CapMan as a pioneer in redefining elder residential care in Finland.

In conclusion, this deal not only positions CapMan strategically within a growth market but also demonstrates a commitment to creating impactful services that enhance the lives of Finland's senior citizens. As the sector continues to evolve, CapMan's proactive approach could lead to an exemplary model for future investments in assisted living care.

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