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Hicks, Muse to scale back fund

In a growing indication of the slowdown in the private equity markets in the US, Hicks Muse Tate & Furst have fallen short with their latest fund.

Originally, Hicks Muse were aiming to raise between $3bn – $3.5bn with their fifth fund but in the face of investor nervousness the firm has decided to close the fund a billion dollars short of this. They expect to raise between $2bn – $2.5bn for the fund.

The shortfall has been put down to the global technology slump, with investors in the US increasingly nervous about committing funds to private equity. Hicks, Muse has already had to sustain some fairly hefty technology write-offs from its previous fund.