FoF Slowdown

Fund of funds faced a tough time raising capital in 2006. Fundraising dropped 15% as 77 funds raised $20.8 billion during 2006, down from the 94 funds that raised $24.5 billion during 2005, according to Thomson Financial (publisher of PEHub.com).

But a lack-luster reception for fund of funds isn’t the only thing plaguing the asset class. Managers face the chance of getting booted from top-notch VC limited partner slots, as Sequoia Capital did to fund of funds looking to get into the firm’s 12th fund. PE Week subscribers can get that story here.

I’m not sure exactly what to make of these numbers. Anybody have any thoughts? Here’s the data:

Year   Funds   Amt. Raised

2006   77       $20.78B

2005   94       $24.51B

2004   98       $18.65B

2003   61       $11.63B

2002   83       $19.67B

2001   106     $20.94B

2000   125     $33.77B