Private Equity Fund-Raising Set To Top 2006 Record
While trouble in the credit markets led to a pronounced slowdown in buyout deal-making in the third quarter, no corresponding decline can yet be seen in fund-raising, according to data collected by Private Equity Analyst. On the venture side, meanwhile, fund-raising continued to be somewhat sluggish.
Through the third quarter of this year, $199.4 billion has been raised by 295 U.S. private equity firms, well ahead of the $154.1 billion collected by 232 firms in the first nine months of 2006, according to the data. The figure is also some $60 billion ahead of where the industry was at the midpoint of the year, showing that the pace of fund-raising hasn’t slowed.
With such firms as Apollo Management, the Carlyle Group and Warburg Pincus still in the market raising funds of $10 billion or more each, the tally looks likely to continue rising rapidly through the end of the year, meaning US fund-raising could well break 2006’s record total of $254 billion.
A total of 102 US venture firms have raised $18.8 billion through the first nine months of the year, down from $21.3 billion raised by 89 firms in the year-ago period. Funds coming to market this year have tended to be smaller than some of the big names that were raising money last year, with Insight Venture Partners’ new $1.25 billion fund representing the largest fund to close this year. In contrast, several $2 billion-plus funds closed last year.
Venture fund-raising may see an uptick before the end of the year, with such firms as Technology Crossover Ventures, which is currently raising at least $2 billion, in the market.
More detail is available from Dow Jones Venture Wire (subscription required).
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