Global private equity fund raising proved to be difficult in 2011 as the annual fund raising reached $262.6 billion in 2011, a 4% decline from a year-ago period, according a research report by Preqin.
"Despite the initial positive outlook, fund raising proved to be very difficult in 2011 and the year ended with two of the poorest quarters for private equity fund raising since before the market downturn," Preqin Senior Manager and Spokerperson Helen Kenyon said.
Private equity fund raising remained weak in the fourth quarter of 2011 as only $52.4 billion was raised by 108 funds that is at par with the previous quarter total -- the weakest three-month period in the financial crisis, the paper said.
Year 2012 is likely to remain "extremely competitive" for private equity players, as 73% of investors plan to make new commitments in 2012, according to the Preqin study undertaken in December 2011.
"Despite almost three-quarters of investors planning to make at least one new private equity investment in the next 12 months, the record number of funds on the road means that the market will remain extremely competitive during 2012," Kenyon added.
Meanwhile, according to the data provided by consultancy firm Grant Thornton, PE deal values in India in 2011 (till December 9) amounted to $7.7 billion by way of 347 deals, a 19.48% rise from the corresponding period last year.
PE deal value is on an uptrend for the last two years in India. It has risen from $3.4 billion in 2009 to $6.2 billion in 2010 and has jumped to $7.7 billion in 2011.
