New York – Defying expectation, U.S. private equity fundraising
in 2010 declined even further from the low levels of 2009, according to new
figures from Dow Jones LP Source.
All told, 336 funds raised $86.3 billion,
down 16% from the $102.2 billion raised by 366 funds the prior year.
While most
sectors experienced a slowdown, areas such as distressed debt funds, mezzanine
funds and industry-focused funds raised more capital than they did in 2009.
"Despite high expectations for fund-raising in 2010, many firms ended up
sitting by the edge of the pool so that they could focus on returning capital
to investors," said Laura Kreutzer, the managing editor of Dow Jones Private
Equity Analyst.
"As we head into 2011, more firms are diving into the
fund-raising market, either because they have a better story to tell or because
they can’t afford to wait any longer."
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