Mon, Sep 23, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Private equity fundraising to see slower growth this year

Monday, February 25, 2019

Laxman Pai, Opalesque Asia:

The unprecedented activity which has characterized the private equity industry in recent years is likely to slow in the months ahead, said a report.

According to 2019 Preqin Global Private Equity & Venture Capital Report, although fundraising has exceeded $400bn annually since 2014, high pricing is putting pressure on future returns and distributions have slowed, leading some managers to reduce their targeted returns.

At the same time, both the fundraising and deals marketplaces are more crowded than ever before, making it particularly challenging for fund managers without an established track record.

Nonetheless, investors remain committed to the asset class: with concerns about a wider financial market correction remaining, the long-term performance and diversification offered by private equity are particularly appealing.

"2019 looks like it might mark the end of the unprecedented boom in fundraising we've seen in the past few years. The flood of capital and participants that have entered the industry have put pressure on pricing, and this has a knock-on effect on future returns that we may already be seeing emerge," said Christopher Elvin, Head of Private Equity.

He added: "With concerns about a market correction on the minds of many investors and liquidity reducing, investors are likely to exercise caution in terms of where and with which firms they deploy their capital."

Future returns from private equity funds ar......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Albright Capital builds on emerging markets impact strategy, signs on to IFC principles[more]

    Bailey McCann, Opalesque New York: Albright Capital has adopted the International Finance Corporation's Operating Principles for Impact Management. The firm has also developed its own impact measurement system as part of the implementation of the principles. The IFC's principles were

  2. Investing: Hedge funds getting burned as growth stocks trounced by value, Why investors are prioritizing health care in a big way, Fannie, Freddie soar as hedge funds score wins on two fronts[more]

    Hedge funds getting burned as growth stocks trounced by value From Bloomberg: A hedge-fund favorite is rapidly losing ground in the stock market just as one of the industry's least-loved sectors picks up. Growth stocks, generally companies that are seeing rapid profit increases, have drop

  3. PE/VC: Supersized unicorn: Root Insurance leaps to $3.65bn valuation with $350m round[more]

    Root Insurance is now valued at $3.65 billion after a $350 million funding round - the largest single venture capital round ever in the state. The 3-year-old auto insurer, now the startup with the highest valuation of any in Ohio, has raised a cumulative $523 million in VC and another $100 mi

  4. Testing hedge performance when stocks crash[more]

    Bonds have historically been a reliable buffer for stock exposure. But low yields and potential reversion to a more positive stock/bond correlation would likely translate to less protection. Gold has been a solid crisis hedge but has experienced long stretches of negative inflation-adjusted returns.

  5. PE/VC: The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct, Why venture capital firms need more women partners and entrepreneurs[more]

    The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct From Vox: Federal investigators are probing the conduct and practices of Mithril Capital, a venture capital firm co-founded by Peter Thiel, Recode has learned. US officials - including t