It's been nearly a year since the credit crunch began, but the
busted buyouts, dearth of IPOs and decline in dealmaking hasn't shaken limited partner's faith in private equity's ability to put money to work, as
fundraising has continued at a breakneck pace in 2008.
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Private Capital funds raised $132.7 billion in the first six months of
2008, just 3% shy of 2007's record-setting $137.2 billion in the same
period, according to
statistics released Tuesday by Dow Jones Private Equity
Analyst. In the first half, 185 new vehicles closed compared with 199
funds in the first half of 2007.
Still, the first chinks in the armor are starting to show as fundraising for traditional LBO funds fell off 20% over the
first six months. Dow Jones' Jennifer Rossa writes:
For first time since 2003, we've seen year-over-year
fund-raising actually decline as some of the bigger firms--Blackstone
Group, Carlyle Group, and Madison Dearborn Partners--ran into delays
raising capital for their latest buyout funds.
Still the drop-off in capital for LBOs was offset by a spike in new money going into mezzanine funds. Also showing renewed
strength were venture capital funds, which saw an increase of 15% to
$11.5 billion raised by 72 funds from $10 billion raised by 62 funds
last year. The full-year fundraising record across all private capital is $313 billion, which was
set in 2007.
- George White See press releaseSee Dealscape posts on fund-raisingSee Dealwatch on busted buyouts
