Q3 2008 Fundraising Weakest for Private Equity Since 2005

Q3 Private Equity fundraising worldwide totaled $82.3 billion, the lowest totaled since $64.8 billion was raised in Q1 2005.  The 61 Private Equity funds targeting the U.S. raised $57.9 billion in third quarter, 31 targeting Europe $11.9 billion, and the remaining 25 funds focused on the rest of the world took in $12.5 billion .  The $82.3 billion is a 52% decline from the second quarter of this year when $179.9 billion was raised.

The breakdown by fund type was as follows: Buyouts raised $43.2 billion, Real Estate funds took in $23.7 billion, and Venture Capital amassed a paltry $9.3 billion.

As the financial markets tighten up (or completely fall apart depending on how optimistically you want to spin it) it’s no surprise that fundraising is taking a massive hit.  LPs are becoming EXTREMELY cautious and many smaller funds that lack a strong track record are going to be left begging with an empty cup (a little darwinistic culling may not be such a bad thing though).

Across the globe there are now 1,594 funds currently trying to raise $928 billion.  Good luck!  You’re going to need it.

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