Private equity fundraising hit by decreasing risk appetite

October report from Prequin research service shows fundraising by private equity investment vehicles drying up as a result of credit crunch

Fundraising by private equity investment vehicles is beginning to suffer as risk appetite decreases, research from Prequin's Private Equity Intelligence service has claimed. Its October report said figures for the third quarter show fundraising is at its lowest since the start of 2005. During Q3, 117 funds worldwide achieved a final close, raising $82.4bn, compared to 159 in Q1 2005 when $64.8bn was raised. The peak period for fundraising in the last three years was Q4 of 2006, when 313 funds closed, with a total of $128.3bn. Capital raising increased until 2008 as the industry grew...