While private equity firms are enjoying more dry powder than
ever, the overall fund lifecycle is expanding. Mergermarket interviewed private equity
partners, directors and principals from across the United States
and their responses point to increases in time in all three
lifecycle segments of a fund: raising capital, searching for
suitable targets, and exit.
Prolonged fundraising
For the majority of US GPs, the time period spent raising money
from investors for their most recent fund was longer than the
preceding one, 76% of the respondents needing between 9 to 18
months total. While fund lifecycles are extending, the amount of
capital being raised has largely remained stable, increasing only
slightly year over year. Mergermarket believes that the reason for
the increased fundraising time horizon is caused by changing
investor demand and regulatory pressure. Investors are streamlining
their PE assets by selling into the secondary market, which
continues to grow,
