Private equity firms write off £826m

Private equity firms in the UK wrote off £826m worth of investments during 2001, according to the British Venture Capital Association (BVCA). The figure, the highest in the past five years, results largely from the bursting of the dot.com bubble. Demand for products and services offered by software and internet service companies has dwindled because of concerns about slowing economies, falling stock markets and overvaluations in the technology sector. This has thwarted the plans of many private equity firms to sell investments at a profit. The value of the write-offs accounted for a...