Fundraising Is Down But Not Dead - New LPs Emerge
Yesterday’s preliminary Q1 fundraising numbers show a massive drop from last year’s first quarter: $99.71 billion a year ago. Just $17.24 billion today. That’s a big hit but, as we’ve outlined before, funds somehow continue to get raised. In other words, fundraising is not dead. An article in today’s Financial Times hinted at that idea: "Two-thirds of investors are sitting on the sidelines and most are selling, not buying,” said Antoine Dréan, chief executive of Triago, which advises private equity groups on fundraising. “General partners are having to look for new sources of capital." What are these new sources of capital? How are “the haves” (e.g. Huntsman Gay, Siguler Guff, Brazos, Lovell Minnick) finding investors, while the majority of fundraisers—the “have nots”—are failing? I called Antione Drean to find out.
