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 Four hundred billion dollars, an all-time high! That's the difference between the capital private equity funds have raised and the amount they've invested in 2009, according to a report by the Alliance of Merger & Acquisition Advisors and PitchBook Data Inc. The figure is also a good indicator of just how much the drying up of leveraged lending has affected buyout firms: That $400 billion would likely have given LBO shops a good $1 trillion in dealmaking fire power when debt markets were roaring back in early 2007. And according to PitchBook founder John Gabbert, "There is currently enough dry powder to more than support the deal activity of 2004, 2005 and 2006 combined with the use of moderate leverage." But even with all that money sitting on the sidelines, private equity firms are still fundraising full throttle. According to data from The Deal Pipeline (subscription required), PE firms took in roughly $30 billion in April alone. Fund-of-funds managers kicked in another $5.1 billion in fresh capital to invest in private equity, venture capital and real estate vehicles over the past two months. With the lull of summer approaching, things don't look very promising for buyout shops to put a great deal of that money to work, but the fall could be a different story if economic conditions improve and credit markets continue to loosen. - George White See Alliance of Merger & Acquisition Advisors/PitchBook report See Dealscape post on PE fundraising in April See Dealscape post on fund-of-funds See Dealwatch on PE/VC fundraising
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