The search for yield continues to lead investors into the arms of PE and VC firms. Fundraising, though, is the easy bit - immense pressure must then follow to deploy the capital appropriately and deliver promised returns...This serves only to fuel asset prices making the job even harder.
Private equity fundraising is at its highest level since the boom years in the run-up to the financial crisis, leaving companies in a “precarious position” as they struggle to invest record sums. More than $240bn has been raised across private equity and venture capital funds in North America and Europe in the seven months to the start of August, according to a report from Pitchbook, a data provider. The company believes private market fundraising in 2017 could eclipse last year, when $344.8bn was raised. The last time private equity did this well was 2007, when managers attracted $419bn.