UBS in Switzerland expects its private equity business UBS Capital to record a pre-tax loss for the second, third and fourth quarters combined of CHF350m (£142,5m) to CHF400m (£163m).
The group has announced that, following this prediction, it is updating the 2001 financial outlook for UBS Capital.
UBS recently announced that due to challenging market conditions it had postponed its plans to spin off UBS Capital to an affiliated status. The group also stated that in view of the more volatile prevailing conditions, it would be slowing down the rate of new private equity investments from its own balance sheet.
As at March 31, 2001 UBS Capital portfolio had a book value of CHF5.7bn (£2.3bn) excluding unrealised gains.
UBS Capital's results are driven by gains on exiting its investments, for instance through public offerings, and by the valuation of the primarily unlisted companies in which it invests.
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