May 30, 2002

Vanguard Drops Private Equity Program

May 24, 2002 -- The Vanguard Group dropped a private equity program it had planned to start, saying it couldn't attract enough assets.

Vanguard said in October that it retained Hamilton Leeds Advisors, a money management firm that oversees more than $22 billion in alternative and private equity investments, to manage a so-called fund-of-funds to be offered to institutions and wealthy investors.

"Although we had some success in obtaining investment commitments for the program, we believe it would have been difficult to raise an amount necessary to make the program cost effective for our clients," Vanguard chairman John J. Brennan said in a statement.

The mutual fund company added that "current market conditions are very difficult for private equity programs, particularly those offered by new entrants."

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