Dow Jones Private Equity Analyst Reports First Decline in U.S. Fund-Raising Since 2003 as Mega Funds See Delays & LPs Look Overseas; European Fund-Raising Up 16%

NEW YORK, July 8, 2008 /PRNewswire via COMTEX News Network/ -- Despite woes in the buyout market,
private equity fund-raising continues to hold its ground. In the first six
months of 2008, U.S. private equity firms raised $132.7 billion across 185
funds, 3% shy of the $137.2 billion raised by 199 funds during the first half
of 2007, according to industry newsletter Dow Jones Private Equity Analyst.
The full-year fund-raising record is $313 billion, which was set in 2007.

"For first time since 2003, we've seen year-over-year fund-raising
actually decline as some of the bigger firms -- Blackstone Group, Carlyle
Group, and Madison Dearborn Partners -- ran into delays raising capital for
their latest buyout funds," said Jennifer Rossa, managing editor of Dow Jones
Private Equity Analyst.

Leveraged buyout (LBO) fund-raising declined 20% compared to the same
period last year as firms raised only $85.5 billion across 75 funds in the
first half of 2008, down from $107.6 billion raised in 91 funds. Seven "mega
firms," defined as firms raising funds of $6 billion or larger, raised $36.6
billion, only a bit below the $37.4 billion raised by eight mega firms last
year.

"The weakness in the buyout industry, however, has been offset by strong
fund-raising by mezzanine funds and a decent showing by venture capital
funds," added Ms. Rossa.

                U.S. Private Equity Fundraising, 1H08 v. 1H07

                                 1H2008                      1H2007
                       No. of Funds  Amounts (MM)  No. of Funds  Amounts (MM)
    Buyout/Corporate
     Finance                 75          $85,542          91       $107,574
    Mezzanine                 7          $24,021           6         $2,300
    Venture Capital          72          $11,504          62        $10,018
    Funds of Funds           20           $8,067          32        $11,680
    Secondary & Other        11           $3,608           8         $5,658
              TOTAL         185         $132,742         199       $137,230

According to Dow Jones Private Equity Analyst, mezzanine fund-raising set
a new first half record with $24 billion raised by seven firms, thanks almost
entirely to Goldman Sachs Capital Partners' record $20 billion GS Mezzanine
Partners V LP fund, which includes $7 billion of leverage.

Meanwhile, venture capital fund-raising increased by 15% to $11.5 billion
raised by 72 funds from $10 billion raised by 62 funds last year.

Warburg Pincus LLC closed the largest buyout fund of the first half with
its $15 billion Warburg Pincus Private Equity X LP. The largest venture
capital fund belonged to Lightspeed Venture Partners, which raised $800
million for its Lightspeed Venture Partners VIII LP fund.

Investment in European Funds Rises 16%

European private equity firms saw an upswing in investment in the first
half of 2008, the newsletter reported, with nearly $61.1 billion invested in
80 funds, a 16% increase over the $52.5 billion invested in 81 funds during
the same period last year. Buyout funds accounted for $54.8 billion, or nearly
90% of Europe's fund-raising total.

"The differing fortunes of European private equity funds are an indication
that limited partners are shifting some attention away from the U.S., where
the economy is seen as particularly weak and where many of LPs are
over-concentrated," said Ms. Rossa.

For more information about Dow Jones Private Equity Analyst, to view a
sample issue or to subscribe, visit www.privateequity.dowjones.com or call
(877) 522-8663.

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SOURCE Dow Jones

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