UBS Capital, the private equity arm of Swiss investment bank UBS Warburg, lost Sfr981m (€670m) in the first half of 2002, almost equalling the Sfr1bn loss it made for the whole of 2001.

UBS Warburg, whose parent UBS Group on Tuesday reported pre-tax profits of Sfr3.58bn in the first half, attributed the private equity losses to falling valuations and lack of exit opportunities. The firm wrote off Sfr513m from the value of its private equity portfolio in the second quarter, an increase of 25% from the first quarter and more than analysts were expecting.