CapMan, one of the largest private equity firms in the Nordic region, is expecting a loss of fee income as one of its investments, a Swedish telecoms company called Utfors, has run into financial difficulties.

Helsinki-based CapMan has €13m ($13m) invested in Utfors, or 15% of its Finnmezzanine Fund II. The weak market for telecom-related services and infrastructure has caused Utfors to breach its banking covenants.