Private equity deals collapsed by 85% in value in the first quarter of this year, while the amount of loans to finance them fell more steeply, demonstrating how the sector has been crippled by a lack of debt to finance acquisitions.

Figures from data provider Dealogic showed private equity deals reached a total of $8.7bn (€6.5bn) in the first three months, a signficant fall compared to the $57.6bn of deals in the first quarter of last year.