Private Equity, Venture Capital Firms in Arizona Fare Badly in Q3

October 11 00:00 2011

New York, October 11 ( – Private equity and venture capital firms in Arizona fared badly in the third quarter as none of them could raise any funds. Even on the national front, US private equity fund-raising fell for the quarter making it clear that that the economy is slowing.

Laura Kreutzer, managing editor of Dow Jones Private Equity Analyst, said that “Private equity fundraising appeared to be on a steady flight back to the land of recovery during the first half of 2011, but recent public market volatility, concerns about Europe and a heightened sense of economic uncertainty created some turbulence in the third quarter.”

Venture capital fundraising in the US and Europe had declined 50% after the 2008 recession and has still not been able to bounce back. Venture capital provides funds for startup companies. In the third quarter, about $2.2 billion was raised through 32 US venture capital funds, lagging behind 24 percent from the same period last year.

However, even with the downtrend in the quarter, fundraising is set to match the nearly $96 billion raised in 2010. $24.8 billion was raised in the third quarter by 110 US private equity funds, which accounts for 27 percent of the $92.5 billion raised during the first nine months. Moreover, during the first three quarters, $66.6 billion was raised through funds that focus on buyouts and corporate finance which is 52 percent higher than the same period last year.