There was a significant dip in private equity fund closings in the third quarter as the industry grappled with increased competition, as well as uncertainty related to the global economy and U.S. presidential election, but experts say the numbers will go up as the end of 2016 draws near.
In the third quarter, there were 69 fewer fund closings worth a total of $51 billion less than the second quarter, according to data from research firm Preqin. A slight dropoff in fund closings is natural because industry players tend to do a majority of their spending during the first half of the year, experts say.
“Historically, the third quarter is slower than the fourth quarter,” Howard Berkower, a partner in McCarter & English LLP’s corporate practice, told Law360. “I think that fundraising will pick up in the fourth quarter.”