Private Equity Adapts Fundraising Strategies Amid Market Challenges

Private equity firms are turning to deal-by-deal fundraising as a way to navigate a tough market and meet investor demands for lower management fees. Last year saw a record $31bn deployed through this approach, more than five times the amount raised and invested in 2019. Major players in finance, including hedge fund Elliott and investment giant Hamilton Lane, are exploring this strategy, which allows investors to cherry-pick companies and offers quicker returns. The difficult fundraising market has also made deal-by-deal investing more attractive to executives looking to set up their own funds.