Data about PE fundraising last year may have raised expectations about ballooning war-chests for players, but the pace slowed dramatically in the first quarter, according to Preqin. Fewer funds were in the market and the largest fund raised was actually a real estate fund, not a buyout fund.
The quarter saw the lowest number of funds close in any quarter in a decade, not since 2003 has such little money been raised by PE – even if the figure was close to USD 100 bn. Preqin says that the trend is that established, well-known funds, have the easiest time raising money and are actually raising capital faster. The trend is caused by LPs reducing the number of commitments they make, but not necessarily the volume of capital they are allocating to PE.