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“Frenzied” private capital fund raising falls back to norm

Private_equityThe “frenzied” level of fund raising for private capital in 2017 seemed to be tapering off in the second quarter (Q2) of this year, according to Preqin.

During the quarter, 326 funds raised $159 billion (€135.2 billion) – a fall from the more than $200 billion raised in each quarter of last year.

The Q2 figure was more on a par with quarterly totals seen in most of 2015 and 2016.

Private equity fund raising saw a “slump”, with $86 billion raised by funds that closed in the quarter. This compares to over $100 billion raised in each quarter last year.

Private debt funds that closed secured €25 billion – higher than in Q1, though fewer funds closed.

Huge inflows have seen total private capital ‘dry powder’ – money not yet invested – approach $1.8 trillion (at the end of June) with over $1 trillion of that available to private equity fund managers.

The latest figures are global and appeared in the recent ‘Q2 2018 Preqin Private Capital Fundraising Update’.

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