Statistics

Private Equity Fund-Raising Falls Sharply Amid Financial Crisis - Survey

Tom Burroughes Editor London 3 April 2009

Private Equity Fund-Raising Falls Sharply Amid Financial Crisis - Survey

Private equity fund-raising around the world has collapsed in the first three months of this year as the economic outlook has soured, with the amounts raised falling to the lowest levels since the final quarter of 2003, new data shows.

Along with institutions such as pension funds, private banks have been among the most important investors in private equity, but data from research firm Preqin suggests investors are sitting on the sidelines. Only $46 billion in funds was raised in the first quarter of this year. That contrasts with a peak of $202 billion that was raised in the second quarter of 2007.

The number of funds on the road seeking money continues to rise, however. There were 1,673 funds on the fund-raising trail in the first quarter of this year, up from 1,624 in January, Preqin said.

According to the firm, fund-raising levels may not reach pre-crisis levels until 2010.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes