UBS reduced the size of its private equity portfolio by more than 40% in 2005. In Q1 2005, UBS’ private equity investments, formerly within the investment bank division, were moved to the industrial holdings segment. This move represents a further step in UBS’ strategy of de-emphasizing and reducing exposure to private equity while taking advantage of exit opportunities from its existing portfolio when they arise.
In 2005, UBS’ unconsolidated private equity investments recorded total divestment gains of CHF684m. The level of investments available for sale fell to CHF0.7bn on December 31, 2005 from CHF1.2bn in 2004 due to a number of exits, which were partially offset by the funding of existing commitments. The fair value of this part of the portfolio decreased to CHF1bn in 2005 from CHF1.7bn in 2004.