(December 23, 2009) – Europe’s Candover has agreed to close its nearly $5 billion buyout fund, a fall from grace for this once-mighty private equity house.

The firm confirmed late last week that its five-year investment window on its latest fund—raised before the financial collapse—was being ended before its time, a result of a lack of cheap debt and large losses. The fund had previously been suspended in April over a failure to meet commitment requirements to its own listed arm and, with that suspension due to end last week, the firm’s advisory committee—comprised of its largest investors—made the decision to close the fund.

The fund has invested in a multitude of deals, the most prominent being the nearly $4 billion buyout of oil and gas group Expro in the summer of 2008. Other investments span Europe, ranging from Swedish bed manufacturer Hilding Anders to Spanish amusement park operator Parques Reunidos.

However, this is not expected to be the end of Candover. Although little income will exist from its terminated fund, Candover Investments—its listed arm—is expected to continue to pay the salaries of its existing employees until it can raise a new fund.