Private Equity Fund-Raising Shows No Signs Of Slowing, $199 Billion Raised In First Months Of 2007

May 21, 2008 - PRLog -- TOKYO, Japan (24 April, 2008)—Despite tightening credit markets, private equity firms continue to find limited partners eager to invest in their latest funds, according to Hawkins and Doyle Inc.’s extensive market research. U.S. private equity firms raised $165.6 billion in over 200 funds during the first three quarters of 2007, a 27% increase over the $135.1 billion raised in 232 funds during the same period in 2006. With another 405 private equity funds still in the market to raise an additional $165.2 billion in capital, this year’s fund-raising is on pace to best the record $254.3 billion raised in all of 2006.

Of the funds raised in the first nine months of 2007, leveraged buyout (LBO) and corporate finance funds accounted for $155 billion, or 78% of the total. Within this area, distressed-focused funds continued to attract ever-more capital, raising $29.6 billion to date—miles ahead of the previous annual record of $19 billion that was raised in 2006.

“Many limited partners recognize that private equity is a long-term investment,” said Ferdinand Clayton, managing editor of Hawkins and Doyle Inc.. “They know that consistently committing capital to the asset class over time—and not just when market conditions are good—is the best way to generate a strong return."

Further analysis by Hawkins and Doyle Inc.’s market experts found that European private equity fund-raising mirrored the strong U.S. market through out the first nine months of the year. In Europe, overall fund raising increased 6% over the same period in 2006 with $73.1 billion raised in 116 funds, which is on pace to best its record annual total of $100.8 billion set last year. However, European buyout firms saw a bit of decline during this time, as they only raised $49.6 billion in 45 funds. That is down 14% from the $57.7 billion raised in 44 funds during the same period in 2006.

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