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Bailey McCann, Opalesque New York:

After several consecutive years of record breaking fundraising, investors may be pumping the breaks on private equity. Global private equity fundraising declined in the first half, with capital raised amounting to $365.75 billion, according to data from S&P Global Market Intelligence and Preqin.

According to the data, if the fundraising pace continues at the same rate for the remainder of the year, then 2024 will mark a roughly 20% decline compared to the $919.27 billion raised in 2023. The number of funds closed is also on track for another down year, with 704 reported in the first half compared to the full-year 2023 total of 2,590.

Private equity has faced a number of headwinds in recent years. A slow exit environment has made it difficult for GPs to go to market with fresh funds as many investors have reported a slowdown in distributions that would normally be used to re-invest in new vintages. Higher capital costs and a mismatch in valuation expectations has also made it more difficult to invest in new portfolio companies.

Data in the S&P Global Market Intelligence/Preqin report suggests some of the decline in new funds could be a result of overhang from last year when a number of funds were in market but didn't close.

The two largest fund raises in the first half of this year include EQT AB (publ) and EQT Partners AB's EQT X fund, ......................

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