The price of weather-proof fundraising

[TX]Fundraising continues to defy gravity and, contrary to popular belief, is not being deterred by the current market conditions. In the midst of all the chaos, LP appetite for private equity appears to remain strong. Bridgepoint's fourth European fund reached EUR4.8bn - 20% oversubscribed. Meanwhile The Carlyle Group has reached the final close of its second European technology fund, Carlyle Europe Technology Partners II (CETP II), at EUR530m above its EUR500m target.

However, not all is rosy; the previous euphoria has dwindled and GPs are very coy about divulging news about their fundraising. Funds are evolving to match market circumstances and in the new environment LPs are perhaps the ones who will benefit the most. Large buyouts will return, although not at the leverage levels seen before the crunch; the times of Alliance Boots-like deals will be no more. The times ahead will see deals with higher equity commitments, longer holding periods and considerable portfolio management. Another thing to keep in mind is that the commitments raised could very well be defaulted.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Industry
• Benelux