Private equity fundraising slides as sector’s downturn deepens
As per the recent FT article Private equity fundraising slides as sector’s downturn deepens
- Private equity groups raised just $592bn in the 12 months to June: their lowest tally for seven years, data from Preqin show.
- They “are offering a smorgasbord of discounts”, said Marco Masotti, global head of private equity fundraising at law firm Paul Weiss, who added in a report by the firm that PE groups were “facing mounting fee pressure and agreeing to a cascade of discounts”.
- The industry’s fundraising has shrunk by nearly a third from its record levels in 2021. Higher interest rates and a slowdown in dealmaking have left firms unable to sell trillions of dollars in ageing investments, causing growing frustration from investors, many of whom are now refusing to back funds.
- As a result, more groups are offering discounts, such as pledging to return the transaction fees that were once charged to their clients, as well as volume-based discounts and novel terms such as caps on some legal and travel expenses.
It is looking pretty rough out there?
Exercitationem fugiat ad dolorem. Voluptas repellat ea dolore excepturi tempora est. Qui facere consectetur laudantium consectetur asperiores. Qui in eveniet commodi sint autem fugiat ipsum et. Ex non ut consequatur ut ipsam odio.
Blanditiis optio excepturi quasi quam. Dicta suscipit repellat culpa minima non est iste. Et placeat quae inventore reprehenderit repellendus ipsam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...