Harsh Environment Leads To Private Equity Funds Of Funds Evolution

Private equity funds of funds had to weather difficult conditions last year as they could garner only $12 billion compared to $58 billion peak achieved in 2007. However, Preqin in its “Private Equity Funds of Funds” report points out that such a challenging fundraising environment has driven the continued evolution of the private equity fund of funds industry. Lowest since 2003 The Preqin’s report highlights that only $12 billion was raised by 72 funds of funds closed in 2013, as compared to a peak of $58 billion secured by 164 vehicles closed in 2007. The following graph captures the annual…