Fundraising World Is Split Between the Haves and Have-Nots

Shasha Dai, The Wall Street Journal | January 26th, 2016 | MMG

When it comes to fundraising last year, it was a tale of two cities in the private equity community.

A handful of popular funds such as Warburg Pincus’s latest vehicle were opened and shut. But some funds–particularly those tied to the energy industry–struggled to attract investor interest.

“There are the worlds of haves and have-nots,” said Frank Morgan, a partner with secondary firm Coller Capital.

Overall, total fundraising volume held steady over the recent-high levels of 2014, with $275.07 billion new capital raised for U.S.-focused funds during 2015, slightly off the $279.74 billion raised a year earlier, according to data provider Dow Jones LP Source, a unit of Private Equity Beat publisher Dow Jones & Co. The numbers included such strategies as buyout, growth equity, venture capital, mezzanine and other private debt, secondary funds, and funds of funds.

Buyout funds raised less money than they did in 2014–$75.73 billion versus $82.28 billion–while the number of funds also declined, to 86 from 113.

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