Fund raising by private equity (PE) funds globally slumped 61 per cent to $246 billion in 2009 compared with $636 billion in the year ago, according to data by research company Preqin.
A double whammy of global economic meltdown and credit crunch saw most PE funds facing difficulty in raising capital from institutional investors, their primary source of funding.
The amount of capital raised by PE funds this year is the worst since 2004. Of the $246 billion, buyout funds were the most active by raising $102 billion.
In October-December, 13 buyout funds closed with an aggregate $14 billion, 24 venture capital funds raised $4 billion, and 17 real estate-focussed funds raised $7 billion.
The data further showed that funds focusing primarily on North America raised the most in commitments over 2009, with 228 funds raising an aggregate $145 billion.
