Private Equity Fundraising in April
Private Equity Fundraising in April
Private Equity Raises $30 Billion in April Surge
Here is just a quick bit of good news: last month private equity firms raised about $30 billion in new capital commitments. This is a strong showing by private equity firms–helped in large part by secondary funds–in an otherwise dismal beginning of this year. In the end of April, private equity funds focused on fund-of-funds contributed significantly to the fundraising boost. Here is the data for the big fundraising push at the end of April:
As the Deal points out, this is especially good news for leveraged buyouts which have seen a decline in capital from their usual sources (pension funds and endowments). The money pouring into fund-of-funds offer a viable funding alternative for future LBO funds. The largest funds-of-funds were closed by Siguler Guff Co. LLC, Morgan Stanley Investment Management and Abbott Capital Management each raising vehicles of $2.4 billion, $1.14 billion, and $1 billion, respectively.
Here’s another look from Deal Pipeline showing the biggest deals in April 2009:
Again, the fundraising boom in April was mainly powered by the very active secondary market. With the uncertain economy and many investors suffering major losses, private investors are now more willing to sell their stakes in private equity and venture capital at a significant markdown. Private equity could do with a few more months of fundraising like April.
Tags: Private equity fundraising, private equity april 2009, private equity economy, private equity secondary market, fund of funds, private fund of funds
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Tags: fund of funds, private equity april 2009, private equity economy, Private equity fundraising, Private Equity Secondary Market, private fund of funds
