PRZOOM - /newswire/ -
Nishi-Shinjuku, Tokyo, Japan, 2011/01/17 - Although overall fund-raising was down for the year, in the fourth quarter, firms raised $26.7 billion in 65 funds, up 19% from the $22.5 billion raised by 101 funds in the same period in 2009.
U.S. private equity fund-raising defied expectations in 2010, declining even further from the low levels of 2009 as 336 funds raised $86.3 billion, down 16% from the $102.2 billion raised by 366 funds in 2009. This while Wiltshire Capital saw an increase of 20% in its U.S. raised equity.
Although overall fund-raising was down for the year, in the fourth quarter, firms raised $26.7 billion in 65 funds, up 19% from the $22.5 billion raised by 101 funds in the same period in 2009.
Despite high expectations for fund-raising in 2010, many firms ended up sitting by the edge of the pool so that they could focus on returning capital to investors. As we head into 2011, more firms are diving into the fund-raising market, either because they have a better story to tell or because they can't afford to wait any longer.
Buyout fund-raising garnered $53.3 billion across 138 funds in 2010, a 9% decrease from the $58.4 billion raised by 148 funds in 2009. In the fourth quarter, 32 Buyout funds raised $19.8 billion, a 53% increase from the same period last year.
Within the Buyout industry, Mid-market shined as firms with a tight focus on a specific industry managed to capture limited partners' attention. Industry-focused funds collected $15.2 billion in 2010, up from $10.1 billion in 2009. Overall, Mid-market funds accounted for more than half of total buyout fund-raising.
Firms focused on Distressed Debt and turnaround investments represented a bright spot in 2010 fund-raising, as Distressed Debt funds attracted $18.4 billion, a 30% increase from 2009. Oaktree Capital Management LLC topped the distressed debt fund charts with a $4.4 billion final closing of Oaktree Opportunities Fund VIII LP, almost $3 billion of which was raised in 2010.
In 2010, investors continued to bet that the economic recovery will be a lengthy one and that access to capital will remain constrained. They also had the benefit of a healthy supply of experienced distressed debt and mezzanine firms that were marketing new funds.
Venture Capital fund-raising fell to $11.6 billion across 119 funds, a 14% drop from the $13.5 billion collected by 133 funds in 2009. In the fourth quarter, 15 venture funds raised $2.4 billion, a 48% drop from the same period last year.