Poor Private Equity and Venture Capital Fund Raising in FY 2009
January 7, 2010
Dow Jones LP Source came out with some closing statistics on FY 2009 US private equity funds. The US private equity funds closed its worst year since 2003 raising $95.8 billion, which is a 68% decrease from the $300 billion raised by 508 funds in 2008. The reason for this slump is the limited capital available to the limited partners. However, the prognosis for 2010 is for this statistic to drastically improve with the loosening up of the liquidity market. The same report determined that although down, the Venture capital firms did much better than the buyout firms. The venture capital firms raised $13 billion across 120 funds, which is a 55% decrease compared to $28.7 billion collected by 204 funds in 2008. Everyone in private equity and venture capital is looking to 2010 with hopes to bring a better economy, stronger liquidity, and great opportunities. Let’s all pray together.