Hicks Muse Tate & Furst is set to close its latest fund some $1bn (€1.18bn) short of its original target, in the latest indication that many US investors are scaling back their private equity investments amid market uncertainty.

The US buy-out firm expects to close its fifth fund with between $2bn to $2.5bn in commitments. It had originally set out to attract between $3bn and $3.5bn when it began raising funds last autumn. The revised expectation for the fund comes after Hicks Muse abandoned plans last summer to raise $1.5bn for a separate new economy fund.