3i, the UK’s biggest listed private equity group, on Thursday reported sharp drops in investment and realisation activity in the five months to August as the credit crisis made it harder to buy and sell companies.

Realisations – from selling or floating companies – fell 45 per cent to £560m ($1bn), the lowest level for five years, 3i said in a trading update. Investment activity fell 38 per cent to £622m, while investments for co-investment funds rose slightly to £268m.