Legal & General Ventures, the private equity arm of the UK life assurer, has joined the fast-growing group of private equity firms and advisers predicting an upswing in the European market next year.

Candover, the European buy-out group, Deloitte & Touche's corporate advisory arm and PAI Management, the private equity arm of BNP Paribas, all said that 2002 would be better for the industry than 2001. This year the growth of Europe's private equity market, still only a quarter the size of the US market, has stalled for the first time.