Private equity fund-raising shattered the $300 billion barrier in the first three-quarters of 2006, with Private Equity Intelligence predicting the industry may hit $400 billion by year’s end. The $300 million figure, thanks to the efforts of 436 new funds, is a 6% bump up over all of 2005, according to PEI, with 225 new U.S.-based funds accounting for two-thirds of the total raised. Buyout funds account for the bulk of the new funding, with 118 of them raising $160 billion, followed by 135 venture funds ($35 billion), 64 real estate funds ($40 billion), 44 funds of funds ($13 billion), 26 mezzanine funds ($17 billion), eight natural resources funds ($17 billion) and nine distressed debt funds ($6 billion). Among the $160 billion raised by buyout funds, about $100 billion was collected by just 13 funds, with each more than $3 billion. Based on data collected from fund managers, PEI says the fourth quarter may be the busiest yet in terms of fund closes, as it expects fundraising condition to remain Òstrong and steadfast throughout the year.
