Charting the Course: Increased private equity fund raising has led to lower returns


High levels of private equity fund raising often foreshadow lower returns and vice-versa

  • Investors have flocked to private equity in recent years attracted by a combination of impressive returns, low volatility and diversification potential.
  • This culminated in 2017 being an exceptional year for fund raising, with the headline amount raised increasing by over 40% year on year, breaking the previous record.
  • New records were also set across many individual categories.
  • Increased fund raising leads to increased dry powder, tougher competition for deals, higher prices being paid and lower subsequent returns.

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