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First-time private equity funds struggle as giants hog investor money

Limited partners have become more selective, to the detriment of managers raising their first funds

An arduous ascent: First-time fundraising slumps as top managers dominate the market
An arduous ascent: First-time fundraising slumps as top managers dominate the market Photo: Getty Images

Debut private equity funds appear to be going out of fashion.

While private equity funds raised a record $595bn in 2019, first-time funds accounted for only 5% of that — the smallest proportion ever recorded in the industry globally, according to data provider Preqin. Since 2009, the proportion of capital raised by debut funds was typically between 10% and 23% of the overall amount.

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