Study: PE fundraising Taking Longer

LONDON (Reuters) – The private equity industry is taking longer to raise funds and meet target amounts as the buyout fundraising market reaches saturation point, buyout research firm Private Equity Intelligence said on Tuesday.

There are currently 1,478 funds seeking an aggregate of $844 billion, compared with 1,304 looking to raise $705 billion in January 2008, Preqin said in a statement.

The average time spent raising cash for funds that closed this year was 14.2 months, almost 50 percent longer than in 2004.

“With funds taking longer than ever to raise, and with more funds hitting the road every day, the fundraising market is in serious danger of becoming completely saturated,” Preqin spokesman Tim Friedman said.

Record amounts of capital are being raised amid healthy investor appetite for mega funds, but the actual number of funds achieving a final close has not been strong, Preqin said. (Reporting by Eleanor Wason, editing by Will Waterman)