Investors Move Away From Buyout Funds

Buyout funds get a cool reception in fundraising market as interest in distressed and infrastructure funds heats up

July 21, 2008

Distressed debt funds and infrastructure funds piqued the interest of institutional investors in the second quarter, snaring capital that historically flowed towards traditional private equity funds, according to the latest data from Preqin. The report from Preqin, a London and New York private equity data company, found that private equity firms raised $161.9 billion in total for the second quarter. Coupled with first quarter figures, boosted the total capital raised in the first half of the year from 355 fund closings to $314 billion. Although 31 buyout funds collected $45.8 billion of commitments in the second quarter, the overall amount of money raised by LBO groups for the first half of the year declined by 21% compared to the prior year period, according to Preqin.

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