Despite Wall Street shivers and the subprime mortgage crisis rattling financial markets, private equity funds have set a record for fundraising this year.
With nearly two months left in the year, the private equity markets have raised $263 billion for 364 funds as of last week, Dow Jones Private Equity Analyst reported Wednesday.
That total tops the record of $258 billion set in 2006.
Private equity funds include venture capital, buyout funds, corporate finance funds, mezzanine funds and funds of funds.
By far the most of the money, $203 billion or 77 percent of the total raised has poured into buyout and corporate finance funds, the newsletter said.
And the fund totals are likely to increase.
“Despite a slow-down in buyout deal activity due to volatility in the credit markets, private equity fund managers continue to find investors eager to back their funds,” said Jennifer Rossa, managing editor of the newsletter. “With the present momentum and a full seven weeks left in the year, we could well see fund-raising break the $300 billion mark for the first time.”