Private Equity Assets Rise 15% In ‘08

Feb 23 2009 | 12:54pm ET

While hedge funds continue to hemorrhage assets under management, the private equity industry continues to grow.

Private equity assets under management rose 15% last year despite the same economic turmoil that have driven hedge fund assets down by more than half to less than $1 trillion, by some measures. P.E. funds managed $2.5 trillion at the end of 2008, according to Preqin, a figure that includes $495 billion in real estate funds.

The growth, a significant slowdown from 2007’s 32% increase, is the result of fewer distributions to investors and stronger than expected fundraising in the first half of last year. Unrealized portfolio investments soared 26% to $1.48 trillion, more than half of the industry’s total assets, while uninvested capital rose 3% to $1.02 trillion.

What’s more, Preqin says p.e. assets, which have more than doubled in the last five years, could double again over the next few.


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