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Wednesday 11 July, 2001


Stmnt re UBS Capital

11 July 2001

UBS postpones plans to spin-off private equity arm

Zurich/Basel, July 11, 2001 - UBS announced today that it is postponing its
plans to move UBS Capital, its private equity business, to an affiliated status.
Challenging short-term conditions for the private equity market make it an
inopportune time for the brand-building and fund raising exercises connected
with the launch of a new autonomous management company.

UBS is committed to providing best-in-class private equity investment
opportunities to its private clients in an open architecture, supplementing the
in-house offering provided by UBS Capital with suppliers from outside UBS.

UBS doesn't rule out increased autonomy as an appropriate future direction for
its private equity business, in order to best capitalise on the expansion
opportunities offered through third-party fund raising.

However, in the current environment, UBS will give top priority to maximising
value creation from its existing portfolio, adjusting down the rate of new
investment from its own balance sheet in accordance with the more volatile
prevailing conditions.

As a result of these changes, and by mutual consent, Pierre de Weck, CEO of UBS
Capital, will leave UBS at the end of July to pursue other interests. UBS thanks
him for his contribution to the development of the firm in a variety of roles
over many years.

UBS Capital will continue to form part of the UBS Warburg business group, headed
by Chairman and CEO, Markus Granziol, under whose leadership an interim
management team is being appointed.

UBS Capital has a well-diversified portfolio invested primarily in unlisted
companies around the world. The portfolio had a book value of CHF 5.7bn at 31
March 2001, the most recent reporting date, with substantial unrealised gains.


UBS Investor Relations Zurich              +41 1 234 4100