Fund raising breaks records

The second quarter of 2008 is the second highest quarter in private equity fundraising history according to statistics from research house Private Equity Intelligence. In the first half of 2008 private equity fundraising raised US$314bn from a total of 355 vehicles achieving a final close.

Although the total of H1 2008 is down on last year’s figures, Q2 managed to raise US$161.9bn despite continuing problems in credit markets and the slowing of dealflow in the buyout sector.

In terms of geographical focus, funds focusing on the US have performed best, raising more in H1 2008 than they did in the same period last year. Europe focused vehicles have remained steady, while Asia and rest of the world funds are slightly down on last year’s figures.

Tim Friedman of Private Equity Intelligence, said: “It is mainly down to an increase in investor appetite for other fund types that fundraising has again exceeded US$150bn in Q2 2008. Featuring principally amongst these are distressed debt funds and infrastructure funds, which have raised US$28.7bn and US$11.4bn respectively in Q2 2008.”