Good morning. Welcome to CapMan's Result Presentation for the first half of 2023. I'm Pia Kåll, CEO of CapMan. We'll start with the financial development. During the first half, we continued to grow fee income and had a stable performance in a slower market. The market uncertainty has continued. It's driven by continued fears of further increasing interest rates, inflation rates, and also increasing geopolitical tensions in Europe. Simplified, the effect it has is higher return requirements, decreased valuations, and in some cases, less availability of financing. We see this especially in the real estate market. It's also impacting private equity and infrastructure, but in the lower mid-market, where we are active, we see less of an impact. Overall, transaction market is slower. It takes longer for buyers and sellers to find consensus.
The fundraising market has slowed from its peak years in 2021 and 2022, and we see processes taking longer, decision-making taking longer. We take proactive measures to drive our performance. We have good development on several key metrics. Our fee income and fee profitability continued to grow. We had a 5% growth in turnover, excluding carry. We had a 14% growth in fee profit, so in EBIT, excluding fair value and carried interest. The strong growth in fee profit is a combination of, of course, turnover growth, but that combined with a moderate cost increase and cost control. Another important area for us is delivering attractive fund returns. Here we have continued to execute on our investment strategies.
We have done five investments and three exits during the period, and we have, for CapMan, recorded EUR 2.8 million in carried interest. That's from exits in the growth fund, and we expect more carried interest over the next 12 months from ongoing exit processes. Our funds also continue to perform well. We had a 3% positive fair value change in our own investments in our funds. That's driven by private equity and infrastructure strategies with a neutral contribution from real estate. In a more challenging fundraising market, we still see continued investor demand for our products, and we have, during the first half, raised EUR 200 million of new commitments to our strategies. That goes across private equity, infrastructure, and real estate strategies. Our key figures for the first half year, we have a turnover of EUR 32 million.
It's flat compared to last year, but turnover, excluding carried interest, growing with 5% to EUR 29 million. EBIT excluding carried interest and fair value changes, so fee profit at EUR 5 million and a 14% growth compared to last year. Our assets under management are at EUR 5 billion. That's at the same level as beginning of the year.
We have EUR 200 million of new commitments coming in, but at the same time, we have a negative impact from completed exits and negative fair value or asset value changes in especially residential funds, and these do net each other out. Our balance sheet and cash position continue to be strong. A short recap of our business and earnings model before we go into the more detailed financials. CapMan is the home for specialized mid-market investment teams, supported by a joint platform with experts.
The majority of our business is management company business, where our teams manage funds across real estate, infrastructure, private equity, and credit, and also wealth management services. We have a service business in CaPS Procurement Services. From these businesses, we get management fee and service fee income, and we also get carried interest from the managed funds when we do successful exits. In addition, we have a EUR 200 million balance sheet that we invest primarily in our own funds, but also selectively in other private market products, and the impact you see from these investments on our profit and loss is the fair value changes of these investments.
If we start with the predictable, stable core of the business, the fee income, as you can see, over the past 3 years, fee income has grown with an average annual growth of 14%. We have increasingly steady contribution from carried interest. If we look at EBIT, excluding fair value changes, an even stronger development, EBIT without carry and fair value, an average annual growth of almost 30% over the past 3 years. Also here visible, the contribution from carry becoming more and more steady. With a continued top-line growth and also improving profitability, our cash flow is also on a positive trend and improving.
It's by nature lumpy, for example, related to when transactions giving carry, when they are closed, and when in time they happen. The trend is clearly a rising one, and our position now, at the end of this period, is, for example, almost double to the cash position we had a year earlier. We then look at our turnover and profitability for this period, turnover at EUR 31.6 million, flat from last year. You also see a almost continuous growth curve over the last four years. When we look at EBIT this period, EUR 4.7 million, here you also see clearly larger swings between the periods. For example, 2020, when the COVID pandemic hit, we had a negative EBIT for the first half, compared to last year's record levels of EUR 33 million, and now at EUR 4.7 million.
What's driving these swings is the fair value changes of our investments. They have no cash impact, but a relatively large impact here on the result, and what they hide under them is that continuous growth of fee income that is more or less following the turnover development. That's also clear when we open up the EBIT in more detail for this period. If you look at the components, starting from the left-hand side, management fee profit, service profit, and related costs from investment business and platform, we land at an fee profit or EBIT excluding fair value and carry of EUR 4.7 million, a healthy growth to last year's EUR 4 million. For this period, EUR 2.8 million of carried interest from exits in the growth fund.
These are inherently uncertain in timing when carry happens. We expect more carried interest over the next 12 months from ongoing processes. For this period, fee profit and carry taking us then to an EBIT excluding fair value of EUR 7.4 million. For this period, a negative fair value change of EUR 2.7 million, taking us then to an EBIT of EUR 4.7 million. A large difference to last year really coming from the fair value changes, where we then had a positive EUR 24 million compared to the now, just below EUR 3 million negative impact. If we break down that fair value change even further, what we can see is that our own funds continue to perform well. We have a positive EUR 3.7 million impact from our own fund investments.
That's driven by private equity and infrastructure, and from real estate, a neutral impact from value-add and hotel real estate developing positively, and income-related real estate strategies, slightly negative. What's really pulling the fair values down is our investments into external funds, and here, especially our external venture capital fund investments. They had a negative development in Q1, and unfortunately, that continued into Q2, so in total, for the half year, a EUR 6.4 million negative. Adding these two up, we then end up at a negative EUR 2.7 million, which can be put in perspective in that this is roughly 1.6% decline in our investments, so in that perspective, still a fairly stable or small change, but obviously here, significant numbers. Our balance sheet continues to be strong.
We have an equity ratio of 46%, and we have available liquidity of EUR 63 million in cash and undrawn credit limits. The strong liquidity means that we can commit, kind of fulfill our commitments to our investments, and we can also continue to support growth of our business. In general, a strong balance sheet in these market conditions gives us financial stability to continue with our operations. Our balance sheet investments are diversified across private markets. Majority is into our own funds, but you can also see external venture capital funds and fund of funds. Total value of these investments at the end of period, EUR 167 million, and we had undrawn commitments of EUR 82 million.
These EUR 82 million will be called down over several years, and they can be compared to the EUR 63 million of liquidity that we have available, showing that we have ample headroom to meet our commitments and also for future commitments. Moving to strategy implementation. We have set our vision to become the most responsible Nordic private asset company. What it means for us in this economic environment, and also a regulatory environment that's rapidly changing, is really that through active ownership, we can drive transformation.
In private equity, in small and midcap companies, it means accelerating growth with sustainable business models. In infrastructure, it's around supporting green transition and sustainable operating models. Within real estate, in opportunistic and value-add real estate, it's really around transforming assets, extending lifespans, and introducing energy efficiency and green building practices.
In the more core real estate, it's around improving asset utilization and efficiency. When we do these things across our investments, we drive financial returns for our investors, but at the same time, we create sustainable impact. We can combine, create sustainable value for our fund investors, for our shareholders, but also for the broader society.
Our strategic focus areas remain the same. It's building on developing our competitive advantages, delivering top investment returns through active value creation. It's integrating ESG sustainability as a core theme in everything we do, and it's developing CapMan as a home for top performers, making sure that we attract and retain the best people in the industry. When we succeed in this, we can drive growth, both through scaling up existing strategies and products, and also exploring new products and potential acquisitions to accelerate the agenda.
The overall objective, naturally, to drive shareholder value, and with this strategy, through a combination of growth and improved earnings quality, and an ambition to double assets under management to EUR 10 billion. A couple of highlights from these areas, from the period, starting with the fund performance. On the transaction side, we have continued to execute on our strategies, both with investments and exits. We have 5 new investments for the period, the latest ones being Serverius, an IT infrastructure company, their Nordic Infrastructure II made an investment, and Silmäasema, where our Growth II fund invested. On the exit side, 3 completed exits, the latest one, Coronaria, an exit from the first Growth Fund, and also, contributing carried interest for this period. At the moment, we have 2 funds in carry at the moment, Growth Equity and Nordic Real Estate.
There are several assets remaining in both of these funds, and it means that every exit we do from these funds will contribute carried interest. We also have several funds in value creation and exit phase, which means that they are transitioning towards carry. We expect more carried interest over the next 12 months from ongoing exit processes, but as usual, timing for these is always uncertain. Moving then to the theme of sustainability, we released our sustainability report for last year just before summer, done in accordance with the GRI standards, and we see good progress on several targets. Within environment, we strive for climate resilience and resource-efficient operations. We have set emission reduction targets that have been validated by the Science Based Targets initiative. For last year, we saw a 17% growth in our Scope 1 and 2 emissions.
That's towards a baseline of 2021, when we still had a large COVID impact. Regardless, our target is to reduce emissions by 51% by 2032. Our share of renewable electricity also grew. Within social, we strive for meaningful work in a diverse and inclusive workplace, we have a stable, relatively good share of women in management group, and share of women as all employees at 36% and 40% respectively. Within governance, accountability, transparency, and executive-level diversity, a stable share of 33% of women on the board of directors, we have done work to link ESG targets into our performance share plans and variable remuneration. These same sustainability targets are also extending into our portfolio and into our investments. Also there, we see good progress during last year.
On climate, within private equity and infrastructure, 11% of our portfolio companies have now set and validated their Science Based Targets, emission reduction targets, and the target that more than half will do so by 2027. Within real estate, the target is to reduce emission intensity, both in residential and commercial real estate. As a whole, reduced intensity during last year, driven by commercial real estate, taking down emissions almost 30%. Within meaningful work in a diverse and inclusive workplace, we have a good average employee engagement in our portfolio companies, 76 out of 100 as an average score. During last year, we created more than 2,500 net new jobs in our portfolio companies. On the real estate side, a good tenant satisfaction with an average of 3.7 out of 5.
On accountability, transparency, and executive-level diversity, we have a stable share of women on portfolio company boards, and we have an increasing share of companies that have linked remuneration to ESG targets. In addition, in this area, there's a lot of basic work in making sure all portfolio companies have the required policies and practices in place for running in accordance with good governance. Sustainability is an ongoing work, and in the portfolio, it's really a work that goes hand in hand with our financial value creation plans, and continuously evolving and improving. Moving over to our growth and assets under management. At the end of the period, assets under management were EUR 5 billion. That's flat from the beginning of the year.
Despite the challenging fundraising environment, we have raised EUR 200 million of new commitments that goes across private equity, infrastructure, and real estate strategies. That obviously increases our assets under management, but at the same time, we had a decrease following completed exits and a negative net asset value change, primarily in our residential strategy, ending then at EUR 5.0 billion at the end of the period. Going forward, we see good possibilities to continue to grow our assets under management.
We have several fundraisings ongoing, and we also have several funds coming to the market within the next 12 months. The foundation for successful fundraisings is really that we continue to deliver attractive returns to our investors in the funds. We have a good foundation to do so with the setup we have with specialized investment teams and an active value creation approach.
In addition, we have a very solid LP base in majority being international institutional investors, who take a very long-term view on their investment strategy. They are less impacted by short-term market changes. This can, for example, be seen that our investors have committed more into the residential fund during this period. As a third thing, the fact that we have a very diversified strategy with several investment strategies and products, gives us stability in these market situations, both on fee income and in assets under management growth. Whereas some strategies have more challenges in the current market environment, the same market environment offers opportunities and favorable situations for others, and that way, creating a stability overall in our portfolio. A short recap of our long-term financial objectives.
Objectives to strongly grow our management company and service business, having a return on equity about 20% and equity ratio about 50%, and distributing a annually growing dividend to our shareholders. Our outlook estimate for 2023, we keep unchanged. We expect assets under management to grow. We expect to grow operating profit, excluding carried interest income and fair value changes compared to last year. With this, it's time to round up the presentation. Thank you for your attention.