Volume 17 - February 2009

2008 was a transition year for private equity fund raising in which the powerful forces driving the market since 2002 went into reverse; shifting the market from a state of acceleration at the start of 2008 to a standstill by year end. Globally, more than US$400 billion of capital was raised by private equity funds worldwide. Fundraising during the first half of the year was strong, whereas few successful initiatives have been launched since the summer of 2008, and certainly since the collapse of Lehman. The current fundraising situation reflects LPs heightened need for liquidity, the denominator impact on allocations, a lack of distributions and a radically changed risk appetite.

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