Private equity fundraising fell by 48% in the first quarter of this year as geopolitical uncertainty reversed a trend of steady improvement in the three previous quarters.

Preliminary data released by the European Venture Capital Association (EVCA) indicates that private equity firms raised only €5.9bn (€7bn) in the first three months of 2003. This contrasts with €11.3bn raised in the three months to December 2002, and is the smallest amount raised in any quarter since 1999.