Global financial markets may be disrupting everything else, but the private equity fundraising juggernaut is steadily rolling on, as the industry put a record $324.4 billion under management in the first half of 2008 thanks to the willingness of limited partners to pile into new distressed asset vehicles.
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Citing data compiled by Preqin Ltd.,
Bloomberg reports
that surging commitments to distressed funds are powering the surge as they bet the economic downturn will continue to the tune of $33 billion poured into distressed asset vehicles before July 1, a full
28% over the year-ago period.
Among the largest distressed funds was a
$10 billion vehicle
for Oaktree Capital Management, the $4 billion WLR Recovery Fund IV LP
raised by Wilbur Ross and Invesco Ltd., and a $1 billion limited
partnership for Roark Capital. TPG Capital is also out raising a
$6 billion fund for distressed financial assets.
On the other hand, new capital flowing into traditional buyout funds
fell 18% against the first half of 2007 as tight credit markets
constricted the ability of private equity firms to make leveraged
buyouts.
- George White
See Bloomberg story
See Dealscape post on Oaktree
See Dealscape posts on PE fundraising
