BDO, an accounting and consulting firm, has released additional findings from its third annual PErspective study, which involved the survey of over 100 senior executives at PE firms throughout the U.S., conducted from October through December 2011. The findings show that private equity fundraising is on the rise, despite challenges.
63% of private equity fund managers reported that they would receive new commitments from Limited Partners in 2012, an increase from 56% in 2010 and a substantial improvement from 2009, when only 40% reported receiving new commitments. Although the majority of respondents acknowledged facing challenges in regards to fundraising, the number of funds that are either currently fundraising or planning to do so this year could lead to an upsurge in fundraising activity in the coming year.
According to the survey, holding periods have also increased, despite the significant number of mature portfolio companies in the market. The majority of private equity fund managers, 91%, indicated that their expected average holding period is longer than it was 12 months ago. Only 70% of fund managers indicated the same in 2011's study.
PitchBook assisted BDO in the conducting and analysis of the survey. To see more of the results, click here.