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Global private equity investment rises in 2003 but fundraising levels remain low

Global private equity investment levels increased for the first time in two years in 2003, increasing by 43 per cent on the previous year to $155bn, according to figures from PricewaterhouseCoopers and 3i. But funds raised fell by 12 per cent to $82bn compared to $93bn in 2002.

Buy-out investment rose by 83 per cent from $65bn to $118bn, driven in part, by a significant number of billion dollar plus transactions. Venture investments totalled $42bn, up from $40bn in 2002.

'All the signs are that we will see an upturn in investing in early-stage technology companies in 2004,' said Tracy Lefteroff, global managing partner for private equity at PricewaterhouseCoopers. 'Improving exit routes and an anticipated increase in spending and M&A activity would suggest that we will see a good flow of opportunities for investors.'

In Europe, funds raised exceeded those invested by $5bn in 2003. In the US there was a funding deficit of $63bn, which would suggest that if investors in the US wish to maintain the current momentum of investing, there needs to be a significant pick up of fundraising in 2004.

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