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Laxman Pai, Opalesque Asia:

Private equity's second-quarter fundraising total fell 17.4% year over year to $241.58 billion, but the number of funds in the market experienced a much steeper decline, dropping 50.3% year over year in the second quarter, said a study.

According to S&P Global Market Intelligence and Preqin data, those two data points indicate that limited partners - many facing a liquidity crunch tied to slowing distributions - are directing their capital commitments to a smaller set of private equity fund managers.

The winners in this environment are likely to be larger, better-known private equity firms, said Bart Molloy, a partner at placement agent Monument Group. "I think there is some skew toward the larger funds that have shown they are a safe pair of hands," Molloy said.

Preqin's second-quarter private equity update report picked up on the same trend, adding that limited partners with limited liquidity are focusing on re-ups with fund managers they already know.

According to the report, the aggregate value of private equity and venture capital-backed deals worth $1 billion or more is pacing for its lowest total since 2019. Global private equity and venture capital deals worth at least $1 billion totaled just $99.47 billion across 33 deals through July 13.

In addition to other factors hampering global M&A activity, big-ticket private equity deals are down because of weakness in the syndicated loan market, Brenda Rainey,......................

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