Increasing Number of Firms Stuck in “Fundraising Purgatory”
This is what happens when LPs are cash-strapped: PE interests are piling up on the secondary market, there’s no debt to do deals and no companies want to sell. PE is out of vogue. Not unlike conspicuous-consumption-in-a-recession out of vogue. The fate of the fundraising processes that have sputtered to a standstill hangs in limbo--a little place LPs have been calling “fundraising purgatory.” This is especially true for many first-time funds, with no existing LPs to rely on to at least participate pro rata. Of course, the first-time funds are also the slowest to admit trouble, claiming they’re still working away, despite prolonged periods with no sign of a close. Others have come clean. In recent weeks, the following firms have put their fundraising on hiatus until the storm passes, according to reports at peHUB or elsewhere:
