Fundraising conditions in 2009

by Siobhan Brewster

  • 01 Feb 2010
  • PE

By the end of 2009 Preqin data revealed that $245.6 billion was raised by 482 funds. As fundraising activities continue to struggle, the number of abandoned funds reached a peak of 22 in Q2 2009 following the abandonment of 18 funds in Q1 2009 and 16 funds in Q4 2008.  Although fewer funds have been abandoned in the second half of 2009 in comparison to the second half of 2008, totalling 23 as opposed to 29 funds, their aggregate target value is over double the amount of 2008 figures and sits at $22.8 billion.

Data from our Funds in Market product reveals that over the course of 2009, 39% of funds closed on a figure equal to or greater than their target.  This means that 61% of fund managers failed to achieve their fundraising target which is almost double the percentage of firms which failed to do so in 2008. In fact in 2009 the majority of funds secured three quarters or more of their initial target while 2008 was dominated by funds which either met or exceeded their targets.

Despite challenging conditions and the fact that private equity fundraising has dipped to levels last seen in 2005, Preqin data reveals 22% of all the funds that closed in 2009 spent less than a year on the road. 

For more information on private equity fundraising, please see how Preqin's Funds in Market service can assist you.

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