GERMANY – The private equity market in Germany is heading for what will be its worse year since 1999, despite a pick-up in business in the second quarter of this year, says the BVK, the German private equity association.

The Bonn-based BVK reports that its members invested just over €1.2bn in the first half of this year, with the second quarter figure accounting for over €725m. The comparable first half figure in 2001 was over €1.7bn.

A spokesman for the BVK says the figures reflect the uncertainty in the markets at the moment. “It would seem that no area in the investment community is immune to the sharp declines seen recently in the stock markets,” he comments.

Though the BVK doesn’t expect the second half of 2002 to rally enough to match the previous two years levels, it is not overly concerned as it believes the markets will pick up again soon long-term.

“We do not expect the full year’s results to match those last year or the year before, but we are confident the markets will recover in the long-term and that the industry will make up for the declines,” says the spokesman.