Private-Equity Fund-Raising: It Is Like 2003 All Over Again
Private-equity fund-raising in the first three months of the year dropped to its lowest level in more than five years, while the number of buyout firms abandoning plans to raise fresh capital is slowly on the rise, according to new research, as investor appetite begins to mirror the flagging deal market.
A total of $45.9 billion was raised for the final closes of 71 private-equity funds in the first quarter, according to industry data provider Private Equity Intelligence. This is the lowest quarterly figure since the final three months of 2003, when $34 billion was raised. Roughly $125 billion was raised in the fourth quarter of 2008.
Funds focused on the U.S. were the most popular, with $23 billion raised across 39 funds, making them the biggest group in terms of both number and value. Seventeen European funds attracted $20.2 billion, while the same amount targeting investments in Asia and the rest of the world raised $2.7 billion.
The full text of this blog entry by Oliver Smiddy, of Financial News, is available at the Wall Street Journal's blog, Deal Journal, 4.1.2009.
A total of $45.9 billion was raised for the final closes of 71 private-equity funds in the first quarter, according to industry data provider Private Equity Intelligence. This is the lowest quarterly figure since the final three months of 2003, when $34 billion was raised. Roughly $125 billion was raised in the fourth quarter of 2008.
Funds focused on the U.S. were the most popular, with $23 billion raised across 39 funds, making them the biggest group in terms of both number and value. Seventeen European funds attracted $20.2 billion, while the same amount targeting investments in Asia and the rest of the world raised $2.7 billion.
The full text of this blog entry by Oliver Smiddy, of Financial News, is available at the Wall Street Journal's blog, Deal Journal, 4.1.2009.
posted by Pamela Poland at
7:26 AM
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