Tough exit markets and the costs associated with opening a buy-out business in Sweden have dragged profits down at CapMan, the Nordic private equity house.

The quoted firm, which invests in mid-market buy-outs, technology and life science, blamed the fall in operating profit from €2.3m ($2.6m) to €1.1m in the six months to June 2003 on a decrease in carried interest and financial "because the markets were not favourable for large-scale exit activities".