The locked-up debt markets may be preventing big leveraged buyouts, but the trouble isn't stopping private equity and venture capital firms from raising new funds as the $58.5 billion raised by 68 funds in the first quarter of 2008 indicates.
Fundraising shot up 32% from first-quarter 2007's total of $44.3 billion, according to Dow Jones Private Equity Analyst. Should the pace continue throughout the year, LBO firms would break through 2007's full-year record of $309 billion.
The jump in fundraising may be attributed to an upswing in new mezzanine and distressed asset vehicles. Dow Jones reports that the largest fund of the quarter was the $20 billion Goldman Sachs Capital Partners' GS Mezzanine Partners V LP, while the biggest distressed debt vehicle was WL Ross & Co.'s $4 billion WLR Recovery Fund IV LP.
Leveraged buyout funds secured $27.6 billion through 33 funds in the first quarter, down 22% from $35.2 billion raised by 34 funds a year ago. While a number of large buyout funds are in the market, it is now taking them longer to close their funds, the report said. - George White
Update: The $58.1 billion figure includes private equity, venture capital, mezzanine and Fund of funds vehicles. Early versions of this post indicated that figure was only for private equity.
See report from Dow Jones
See PE & VC fundraising Dealwatch
Comments
Very impressive stats!
So how do you get distressed or opportunistic deals in front of the funds outside of knowing the GP's brother? :)
Much Success!
Marvin aka eMarv