Private Equity Funding Slowing Down

The 2007 Banking Liquidity Crisis has cooled off the fervor of investors for private equity, according to a recent report released by Prequin. The analysts estimated that successful closings of private equity offers declined to $91 billion in Q3 2007, down from an all-time high of $177 billion in Q2 2007. The total funds raised in 2006 was $486 billion, which was also record-breaking. (Source: Prequin, Private Equity Spotlight, October 2007).

What It Means to You

As mentioned last month, investors are hesitant to buy complicated financial products without knowing the value. This is probably a good thing for the financial markets and the economy. However, it does probably also mean that both the economy, and your portfolio, will probably see slower growth in the near-term future. (See Fed Governor Kroszner Says Credit Crisis May Not Be Over, 10/22/07)

Basics of Financial Planning

• How to Invest in the Stock Market
• Should You Invest in Mutual Funds or Stocks?
• 10 Steps to Building a Complete Financial Portfolio