Choppy fundraising ahead?

PB icon
Content hub / Article / PitchBook / Choppy fundraising ahead?


Download PitchBook’s Report here.

Market turmoil continues. The ripple effects will impact private equity deal flow and exits, and it will certainly impact fundraising. Our latest analyst note sees fundraising “tapering as demand outstrips supply.” PEGs have been returning and re-returning to the fundraising trail over the past few years, inundating LPs with new opportunities. The note points out that “some top-decile buyout firms with track records of 20 years or longer are struggling to raise capital.”

If equities continue to slide, the PE market may be facing a denominator effect in coming quarters. Any sustained decline in an LP’s public equity allocation could artificially push the LP’s PE exposure well past its allocation target. LPs will have a better sense of where they are when their PE managers report their quarterly portfolio valuations to investors. Funds already on the market may need to close below their target size, or would need to anticipate delayed closes. All of this would be a sharp reversal from recent history, which has been partially fueled by the reverse denominator effect: rising equity prices can inflate equity allocations and shrink PE allocations, almost forcing LPs to invest in more PE funds just to keep up.

(Past performance is no guarantee of future results.)

Contact Alex Lykken
Private Debt Investor New York Forum

September 15-16, Hudson Yards, New York

Private Debt Investor New York Forum

Bringing together the investors, managers and advisers shaping the next phase of the market — 200+ allocators and $10.6 trillion of LP capital expected. Benchmark strategies, hear from leading LPs, and cut through market noise over two unmissable days.
Learn more
US Private Credit League Tables H1'26

Report

US Private Credit League Tables H1'26

The definitive rankings covering private credit activity in H1'26.
Download
PitchBook's Q2 2026 US PE Breakdown

Report

PitchBook's Q2 2026 US PE Breakdown

Software freezes and energy powers on as US PE deal value falls 38% in Q2 2026.
Download
Making sense of private credit defaults

Webinar

Making sense of private credit defaults

What does private credit default data really tell us? Join our exclusive webinar featuring experts from KBRA, Moody's, Fitch Ratings, and S&P Global to find out.
Register

Latest news

    Q2'26 BDC analysis shows additional 184 bps of nonaccruals at cost

    In a universe of 173 business development companies, or BDCs, Octus identified a total of $9.5 billion of debt (at cost) in nonaccrual status reported in the second quarter of 2026, a slight decline of 5% from $10 billion in the first quarter of 2026.

    Read More

    Reading the Board

    The story changes depending on which numbers you’re counting.

    Read More

    Private Credit Defaults 101: Different Numbers, Different Stories

    In Season 2 of Billions, Bobby Axelrod takes his lawyer Orrin Bach to an empty Yonkers racetrack in the dead of night.

    Read More