AltResources LLC – Notes a Recent Report from Pitchbook
Capital is the lifeblood of private equity (PE), but the inflow of money into PE funds has slowed considerably as a recent imbalance between funds raised and deals executed has resulted in an ample supply of dry powder. Record-breaking fundraising witnessed in 2007 and 2008 was followed by a dramatic slowdown in the number of deals in the post-crisis era, which has reduced the need to raise more capital. To that end, the average size of successor funds has dwindled and the average time between funds has increased from 3.8 years in 2008 to 4.8 years in 1H 2012.
While fundraising totals in 2012 are on par with 2011, there are several developments that bode well moving into the future. PE firms closed 40 funds with a total of $42 billion in 2Q 2012, the second best quarterly total in the last three years….
This article represents the views of the author only and does not necessarily represent the views of AltResources.
AltResources is a leading provider of trusted, independent administrative services for private equity, venture capital and buyout funds and other closed-end, committed capital structures, including energy, infrastructure, mezzanine and real estate. The firm provides a range of accounting, tax and compliance services customized to meet the needs of each client through an experienced team of professionals and state-of-the-art technology.
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