The past three years have been for portfolio managers to raise funds on the back of positive economic outlook and real growth. However, analysts now say that there is some evidence that the fundraising bonanza is slowing. Viewing the figures through a four-quarter rolling average smooths out the data somewhat, helping control for outlier $10 billion-plus funds that can skew the bigger picture. The rolling average for both fund counts and capital raised in Europe and North America is swinging down, a trend that began around the middle of 2017.
Depending what happens with the current run in the bull market, LPs may rethink their alternatives allocations in the near future, if they haven’t already.