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Saturday, November 21, 
2:50 am

Private equity fundraising continues at breakneck pace

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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 release
See Dealscape posts on fund-raising
See Dealwatch on busted buyouts




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