CAPITUM

PRIIP Key Information Documents

and Fund Documentation

Where units in an alternative investment fund are marketed to retail or semi-professional investors, a PRIIP Key Information Document must be in place before marketing may begin. The document must be kept under review and updated whenever the underlying assumptions change.
The requirement applies regardless of fund size. Few smaller managers hold the competence in-house, and the document is neither marketing material nor a formality: behind its few pages sit a summary risk indicator, four performance scenarios and a full cost disclosure, each calculated by prescribed method and each capable of being substantiated if challenged.
Capitum prepares Key Information Documents together with the underlying calculation model and a methodology note setting out every methodological choice and assumption. That is the material which must be capable of being produced for an auditor, a legal adviser or a supervisory authority.

What the engagement covers

• Summary risk indicator, with the underlying market and credit risk calculation
• Performance scenarios calculated by the prescribed method
• Full cost disclosure, including reduction in yield
• Methodology note documenting every methodological choice and assumption
• Calculation model in Excel, which can be verified and reused at the next update
• Annual review and update of the document

Independent valuation function

A manager of alternative investment funds must maintain a valuation function that is functionally independent of portfolio management, or appoint an external valuer. It is a recurring obligation, and it requires both genuine independence and demonstrable valuation expertise.

Capitum has prepared more than 150 valuations since 2016, including for investment companies and for companies listed on NASDAQ in the United States. That experience, combined with ongoing work on fund documentation, makes the function a natural extension of the Key Information Document engagement — same fund, same manager, same underlying data.

Other documentation

• Investor and subscription materials
• Sustainability disclosures under SFDR, pre-contractual and periodic annexes
• Support with periodic reporting to the Danish Financial Supervisory Authority

Engagements can be handled individually or together, for a single fund or several. Call +45 21 30 27 22 or write to morten@capitum.dk for an informal discussion about a specific fund.

Business Valuation Services

I deliver high-quality, investor-grade valuation reports built on deep expertise in business valuation and the key drivers of value. These analyses support capital raising, M&A transactions, business sales, succession planning, and litigation - always with precision, thorough documentation, and strategic insight, regardless of company stage or industry.

Our valuation and advisory services are fully tailored to your specific needs. We apply professional judgment and advanced analytical techniques to deliver robust, defensible valuations. Should a valuation be challenged, we provide additional advisory support to defend it.

While valuations are analytically rigorous, they remain inherently subjective and complex. To ensure they are well-reasoned and audit-ready, you need seasoned expertise on your side. At Capitum, independence, confidentiality, and meticulous analysis form the foundation of every valuation we deliver.

Who is Capitum?

Capitum is Morten Christensen.

I have always been fascinated by what truly drives a company’s value and how that value can be estimated with the highest degree of accuracy. After more than a decade in private companies, including several years as CFO, I realized my greatest passion lies in helping businesses understand and optimize their value.

Since 2016, I have specialized in delivering high-quality valuation reports that provide founders, investors, and owners with a solid foundation for informed decision-making. Whether the task involves capital raising, M&A transactions, business sales, succession planning, preparing for a future exit, or litigation, my analyses bring clarity where it matters most - regardless of complexity.

Academic Background:

• MBA with a specialization in Business Valuation, including advanced coursework in Corporate Finance.
• Master’s thesis: “Valuation and Management of Corporate Value”
• MSc in Management Accounting (Cand.merc.), including Corporate Finance, with a thesis on the use of advanced financial instruments for managing currency risk.

I also work with regulatory documentation for alternative investment funds. The calculations behind a PRIIP Key Information Document — the risk indicator and the performance scenarios — rest on volatility and derivatives theory, which is the same field as my master’s thesis on the use of advanced financial instruments for managing currency risk.

This combination of strategic insight, up-to-date theoretical knowledge, and hands-on CFO experience enables me to deliver valuations that go beyond the numbers - transforming them into well-documented, decision-relevant reports.

Since launching my valuation practice in 2016, I have expanded my client base to include complex startups, large Danish companies, investment firms, and publicly listed companies on NASDAQ in the U.S.

I approach every engagement with a deep commitment to delivering a thoroughly prepared, high-quality product that creates real value for the client. Confidentiality and independence are fundamental principles in everything I do.

Fee for a Business Valuation Report

The price of a valuation report is not fixed, as it depends on the company’s characteristics, complexity, scope of work, and the purpose and intended use of the report.

Below are examples illustrating different scenarios and needs:

• Small business: The owner seeks an indication of the company’s value for internal purposes.
• Startup: Valuation in connection with a potential capital raise for growth.
• Established mid-sized company: Considering succession planning, partial sale, or capital raising without a final decision.
• Company in a sales process: Requires an in-depth report to prepare for a sale - such as succession, industry consolidation, or sale to a private equity firm - to professionally assess purchase offers.
• IPO preparation: Requires a comprehensive, well-documented valuation report that meets regulatory requirements in Denmark or internationally.
• Pre-sale optimization: The company aims to maximize value ahead of a future sale. This involves preparing a current valuation, identifying value drivers, and setting targets with an updated valuation based on progress.
• Other scenarios:
• Second opinion on an existing valuation.
• Valuation in connection with acquiring a Danish or international company - possibly combined with an assessment of your own business.
• Indicative valuation of a competitor (subject to limited data and higher uncertainty).
• Advisory on value creation and strategies to optimize company value.

Capitum has experience across these areas and many other combinations.
Therefore, it is essential to understand the scope of the engagement before providing a specific price.

Getting started is easy - contact me at +45 21 30 27 22 or morten@capitum.dk for a no-obligation discussion.

5 Key Factors Investors Look for in a Valuation

When investors evaluate a company, it’s not just about the numbers—it’s about credibility, potential, and risk management. Here are five key areas they focus on:

1. Realistic Assumptions - Are budgets and growth forecasts based on facts and documented data?
2. Cash Flow and Liquidity - What does the cash flow look like, and is the capital requirement under control?
3. Market Position and Competition - Does the company have clear differentiation and a sustainable market?
4. Leadership and Governance - Are there the right competencies and structures to execute the strategy?
5. Risk Analysis - How are uncertainties managed, such as dependency on key customers or suppliers?

A professional valuation report addresses all these points - giving investors the confidence they need to make informed decisions.

5 Critical Elements of a Valuation Report

A valuation report is more than just a number - it’s a decision-making tool for investors, owners, and advisors. To ensure credibility and value, the report should include:

1. Clear Methodology - How was the valuation performed? (DCF, multiples, asset-based, etc.)
2. Data and Assumptions - Are the underlying assumptions realistic and well-documented?
3. Market and Industry Analysis - What does the market look like, and which trends impact value?
4. Risk Factors and Sensitivity Analysis - How do changes in key metrics affect value?
5. Conclusion and Recommendations - A clear summary that provides insight and actionable guidance.

A professional report builds trust and transparency - and that’s exactly what investors expect.

How Does the Process Work?

You are always welcome to contact us—completely obligation-free and, of course, in full confidentiality.

The typical process looks like this:

1. Initial Consultation
   A brief phone or online meeting to review the assignment.
2. Price Estimate
   You will receive a price estimate for the valuation report no later than the following day.
3. Document Request
   If you decide to proceed, we provide a tailored list of requested materials. It’s not critical to have everything - our work is based on what’s available. The more complete the data, the more precise the report. This is aligned continuously.
4. Material Analysis
   We thoroughly review all received materials to gain a deep understanding of your business.
5. Industry and Market Analysis
   We collect and prepare relevant industry and market insights.
6. Selection of Valuation Methods
   Typically, two methods are applied and benchmarked against each other to ensure high validity.
7. Report Preparation
   The report is fully customized to your company. It is not auto-generated but individually crafted.
8. Delivery and Review
   The report is delivered and can be reviewed via phone, online, or in person.
9. Revisions and Adjustments
   Any corrections - e.g., if something was misunderstood - are incorporated, and an updated version is provided.
10. Completion and Invoicing
    Invoicing is divided into two phases: one upon project initiation and one upon approved delivery. The payment term is net cash + 3 days.

Timeline:
Once all materials are received, we aim to deliver within one week. For complex assignments, the process may take longer, but deadlines are always agreed upon upfront - and can be expedited in special cases.

Throughout the process, we may need occasional clarifications, but we strive to minimize disruptions to your busy schedule.