Private Equity Fundraising Reaches Post-Crisis High, Reports Buyouts

Private equity fundraising during the second quarter of 2012 was the strongest the U.S. has seen since the third quarter of 2008, Buyouts magazine recently reported. The second quarter has been historically strong for fundraising, but totals so far this year have been so strong that if year-to-date figures were to continue into the second half, they would lift the industry into its first $100 billion-plus year since the golden era of 2005-2008.

So what’s the reason for the surge in fundraising? According to Brentwood Associates partner Bill Barnum, “[Pensions, for one,] are back in the market, and more aggressive than they have been. There are a lot of exits by GPs right now, and these distributions are creating a virtuous cycle, giving investors the ability to reallocate capital.”