The April 6, 1998, issue of Buyouts predicted a booming fundraising year ahead, even though the numbers for that year’s first quarter didn’t exactly set the market on fire. During the first quarter of 1998, U.S.-based buyout firms raised a total of $6.6 billion, less than the $7.4 billion accumulated during the same period a year earlier and down from $10.4 billion in the preceding quarter.
But 1998’s first quarter saw general partners launch funds seeking a total of $18.8 billion, more than the total sought by LBO funds during all of 1996 and almost half of the total targeted during 1997. Looking at those fund targets, a bevy of industry experts said that the fundraising boom that began in 1996 would keep on going.
Some of the firms raising funds a decade ago also appear on Buyouts’ most recent fundraising list. Back then, The
Cross-border deals were also coming into vogue. “One trend out there is domestic buyout guys are doing more international deals,” said Steven Costabile, then the director of alternative assets at
Then, as now, mezzanine funds were popular investment vehicles.