The European private equity industry raised a record €17.7bn ($14.8bn) in fresh funds during the second quarter of 2001, a steep 58% surge from the first quarter and more than double the amount raised a year earlier.

However, the total value of deals completed slipped to €23.1bn, down about 5% from €24.2bn the previous quarter and nearly 20% lower than the lofty levels seen in the third quarter of 2000. The slide raises fresh concerns that, despite the enthusiasm of investors for private equity, the economic slowdown means that there may be too much money chasing too few deals across Europe.