Just how different is the fundraising market these days? Just consider the case of EnCap Investments LP.
On Monday, EnCap announced it had raised $3.5 billion for its eighth “upstream” fund, which will invest in companies that drill and produce oil and gas. David Miller, an EnCap co-founder and a managing partner, estimates that the PE shop spent nine to 10 months marketing for EnCap Energy Capital Fund VIII. By contrast, the buyout shop spent roughly four to six months fundraising for each of its last four to five funds.
“The world changed in 2008,” Miller told me. “There was huge demand. But it took longer to get people to the finish line because the due diligence was more extensive.”