“Fundraising in 2010 turned out to be just as challenging as many feared. Although there are many individual success stories, on an overall basis fundraising levels were extremely low. Looking forwards, conditions in 2011 appear far more encouraging. 54% of investors plan to invest more capital in 2011 than 2010, with only 15% investing less. Market conditions are improving, and with deals and exits occurring at the highest levels for some time, investors will have to increase investments to maintain allocations,” said Tim Friedman, Head of Communications at Preqin.
Preqin is expecting fundraising to exceed $300 billion in 2011, with a more dramatic increase coming towards the end of the year as top quartile managers close significant funds that have been launched recently or are in the pipeline.