Driven by a small number of funds that held large closes, US and European private equity fund-raising rebounded in 2011. According to figures from Dow Jones LP Source, US private equity funds secured $31.6 billion for 89 funds during the first quarter, more than double the $13.5 billion raised for 81 funds during the same period last year. "In 2010, many private equity firms focused on trying to return capital and those efforts are starting to bring their investors back to the party," said Laura Kreutzer, managing editor of Dow Jones Private Equity Analyst. "But limited partners are still like bouncers at an exclusive night club. They're only letting the best looking groups behind the velvet rope. Everyone else still has to struggle for their attention."
All sectors except Mezzanine raised more capital than the same period last year. European firms collected $8.2 billion during the quarter, up 39% from the $5.9 billion raised a year earlier, although the number of closings declined to 22 from 32, according to the data.