Tuesday, September 20, 2011

Private equity fundraising down year-over-year - Business First of Louisville:

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A study released Wednesdahy by Dow Jones Private Equity Analystsaid $54.9 billion was raised by 173 private equity funds in the firs t half of 2009 from pension funds, universitu endowments, foundations and other investors. As of June 30, 261 funds raised $152.7 and for the full $287.5 billion was raised, second highest total in history. But the studg also said there were signwsthe fund-raising market may be improving as the stocm market showed more stability in the seconds quarter and the institutions and firma that invest in private equity funds as limited partners had a better understanding of the state of their own balancw sheets.
The study said leveraged buyouy and corporate finance funds continue to attracty the largest proportion ofcapital investment. In the firstf half of 2009, 73 buyout funds raised $28.7 almost three-fourths less than last year. Fundx also have smaller goals. Just three were tryin to raise morethan $8 The dicey economy has prompted many pensiojn funds, endowments and foundations to try to sell their privatde equity fund stakes, the studyh said. Secondary funds, which pool capital form investorz to purchase existing stakes in privatrequity funds, frequently at reduced prices, have seen increasex investor interest as 18 secondaryt funds have raised $13.
9 That set a new annual record for the secondary fund categor y with six months remaining. Venture capitalk funds saw similar drops as 51 firmx raised acombined $5.1 billion by June 30, comparedf to $13.6 billion raisedd by 115 a year ago. The worst first-half total for venture capital fundsd was in 2003 when 34 funderaised $2.2 billion.

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