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(From Financial News (Daily))
European private equity firms raised '1.6bn ($1.6bn) in new funds in the second quarter of 2002, a 70% fall on the first quarter's total, according to a survey published by the European Private Equity and Venture Capital Association (EVCA).Consultants say investors, facing massive falls in their public equity portfolios, have put new investments in private equity at the bottom of their agendas. Moreover, investors want to realise returns from their existing investments before commiting more funds, so fundraising is being made even more difficult by the dire state of the exit markets.
In the second quarter there were only '900m-worth of successful exits, valued at cost, just slightly higher than the previous quarter's value. Meanwhile the private equity firms wrote off investments that had cost them '400m, more than twice the ...