January 15th, 2010, 4:00 pm · posted by Jan Norman, small-business columnist
Private equity firms raised $135 billion in 2009, down 57% from 2008 and the least since 2004, according to PitchBook Data Inc., a private equity research firm. (Click on image for a larger view.) Source: Pitchbook Data Inc. Source: Pitchbook Data Inc. Private equity firms are major sources of capital for company acquisitions and debt restructuring. The number of funds raising capital declined 55% to 85, PitchBook said. Recently, Thomson Reuters said investments by private equity funds in 2009 plunged 81% from their highs in 2007. Private equity firms provided capital for almost 1 in every 5 deals in 2006, but in 2009 they funded just 6.5% of the deals., Thomson Reuters said. PitchBook’s report on fundraising indicates that private equity firms aren’t exactly beefing up for a big comeback. Firms that specialize in funding buyouts are still the giants in private equity, accounting for 39% of the fundraising in 2009, PitchBook said. The other fundraisers were:
* Venture capital, 23%
* Fund of funds, 16%
* Restructruring-distressed debt, 6%
* Expansion and mezzanine 4% each
* Other
