Introduction

Starcap Private Equity Fund is to offer its shareholders an investment opportunity in a unique Private Equity Portfolio constructed in the same way as large long-term institutional investors build portfolios with current return, independent of the stock market, and long-term value increase as the target. Added value for the investors in the company is created by a sound approach to investments in small and medium-sized companies, realising that value is created every day in these companies, and not a world away from the Stockholm financial district. This platform, combined with the unique experience and networks that the Fund’s management, investment advisors and board bring to the table aims at the highest possible return for the investors.

Objectives

Starcap Private Equity Fund has the objective of producing an average annual return of approximately 20% over an investment horizon of 6–7 years of which direct yield per year, as a target, will be 3% of the invested capital. The focus is nevertheless always on value increase in the portfolio companies.

Starcap's investments

Starcap Private Equity Fund invests in Swedish companies or foreign companies under Swedish ownership or management. The Fund invests in three types of company:

1. Starcap aims to invest approximately 60% of its capital in companies with a high profit margin of over 20%, which have a positive cash flow over the last five years (including 2008 and 2009), which were set up more than 10 years ago.
2. Starcap aims to invest approximately 30% of its capital in growth companies which have a positive cash flow and have a dynamic growth of over 20% per year from products or services with global potential and proven management.
3. Starcap aims to invest approximately 10% of its capital in developing companies with a positive cash flow. The companies must have a unique product, service or right such as patent, exclusivity contract or equivalent. It is a requirement that management in the developing company itself shall invest. The reason for this is simple - creating maximum value increase by having eyes constantly open for business.

Target returns

The target for returns is approximately 20% expressed as an average return per year over the whole investment period. The aim is to deliver, after the fund’s investment period, a current dividend of approximately 3% per year on the capital invested by the investor.

Contact

Fund Maganer, Johan Amnéus: johan.amneus@starcap.se