PE Fundraising Falls To Six-Year Low

Private equity firms might have ramped up their deal-making activity in Q3, but it wasn’t on the heels of raising new funds.

According to new data released this morning by Preqin, private equity firms raised less fund capital last quarter than in any other quarter since Q4 2003. The Q3 2009 figure was $38 billion, down 45% from the $84 billion raised in Q2, and a whopping 82% from the high-water mark of $208 billion set in Q2 2008.

It’s important to note that Preqin calculates its numbers by including all of a fund’s committed capital in the quarter in which it holds its final close. For example, that means that the Q3 figures include $8.8 billion for Hellman & Friedman’s new fund, even though most of those commitments came on interim closes held in earlier quarters.

Thomson Reuters (publisher of peHUB) calculates its fundraising data by breaking out the fund closes, and attributing the commitments to the quarter in which they were actually committed. Expect those figures shortly, and the resulting discrepencies.

You can download Preqin’s data here (.pdf).