Private Equity Fundraising
Update on Private Equity Fundraising in Q3 2009
Fundraising is still in the doldrums as an estimated 90 funds stopped their fundraising process entirely and many funds have lowered their target amounts. Fundraising fell to a six-year low in Q3 2009. Surely some of the drop in fundraising is private equity managers hesitating to throw their hat in the ring while the economy is still unstable, but investors are not making new commitments--probably for the same reason. In a recent Preqin survey, only 41% of surveyed investors reported making a new fund commitment in the first half of 2009.Although private equity firms are having trouble raising capital, the survey found that the majority of PE funds are hoping to make new private equity investments in 2009. 54% of firms surveyed said they expect to make new deals this year and 25% plan to invest in 2010.
As the graph below shows, private equity fundraising fell yet again, to its lowest point in six years at $38 billion (45% drop from last quarter).
For the full fundraising data see this PR
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Tags: private equity fundraising, fundraising quarter 3, private equity fund raising, private equity firms, raising money from private equity, raising capital for private equity firms, fund marketing
Link to This Resource: Private Equity Fundraising
http://privateequityblogger.com/2009/10/private-equity-fundraising.html