The net asset value of 3i Bioscience Investment Trust fell by 51.2% over 2001, which for many private equity investors, epecially those in technology, will be regarded as their annus horibilis.

Bioscience, which is widely regarded as one of the safer areas of technology, is nonetheless a volatile sector. Despite some immunity to broader economic cycles, biotechnology is more reliant on demographic change and institutionalised healthcare budgets, and the sector still managed to underperform in the first three quarters of 2001. This was perhaps inevitable after a record year for fundraising in the US and Europe during 2000.