STILL the most active venture capital market in Europe is that in the

UK, according to figures issued yesterday. While the level of investment

across Europe held stedy last year, home activity showed a 6.4%

increase.

France was the second largest market, followed by Germany. Both Spain

and the Netherlands showed reduced activity.

The UK did show a fall of 10.9% in the number of new investments to

2067, almost mirroring the general situation although increases in the

average size lifted the overall result.

''The increase in average deal size confirms that venture capitalists

prefer larger, less risky deals, such as expansion capital and

buyouts,'' said Alan Malcolm, Scottish corporate finance partner of

accountants KPMG Peat Marwick.

* FUND manager Murray Johnstone has announced an alliance with

pensions administrators Hadrian-Solway to provide low cost money

purchase schemes. A spokesman said they would compete ''head-on'' with

insured vehicles bearing high levels of commission.