The number of European private equity deals has halved from 381 in the final quarter of 2001 to 197 in the first quarter of this year, according to new data from Initiative Europe, the European private equity research firm, as investors become pickier about committing to deals in the post-boom economy.

Investment by private equity firms fell by a third from €16.6bn ($14.7bn) in the last quarter of 2001 to €11bn in the first three months of 2002. Investment in early-stage companies was worst hit, falling by 45% to €90m in just 30 deals, compared with €200m in 80 deals in the previous quarter.