Fundraising taking longer

Fundraising is taking longer than ever after the first five months showed that although US$155bn was raised, it took those funds 14 months to reach a close, according to Private Equity Intelligence.

Although the amount raised was high, the number of funds reaching a final close fell, which the report attributes to the continued investor appetite for mega funds.

Currently there are 1,478 funds on the road, looking for a total of US$844bn – this is a 13% increase on the number from January this year and a 61% rise from January last year.

“With so many vehicles on the road investors are inundated with opportunities to consider, and with only so much capital to go around at any one point, fund managers are having to wait longer than ever before to secure commitments and reach their target,” said Private Equity Intelligence’s Tim Friedman.