Fidelity to close private-equity unit

Dismal economic conditions are forcing Fidelity Investments to shut down a private-equity unit. The Boston-based firm will close Fidelity Equity Partners, which has about $500 million in assets, at the end of July, said Anne Crowley, a spokeswoman for the company. “Debt financing is largely unavailable as a result of the economic conditions,” she said. “This has made the leveraged-buyout market not as attractive.” The two-year old unit, based in Boston and London, had 12 employees split between the two locations. The unit invests Fidelity’s own money, and “no outside investors or customers of Fidelity were involved,” Ms. Crowley said. The unit had made investments in four companies and the firm will maintain those stakes, she said. The closure of the unit does not affect the firm’s venture capital business, Fidelity Ventures, which was established more than 40 years ago and continues to invest in companies, Ms. Crowley said.