Private equity fundraising cools at year-end

NEW YORK (CNNMoney.com) -- The pace of activity cooled in the fourth quarter of last year, but 2006 was still a blockbuster year for private equity fundraising, according to a survey released Tuesday.

Venture capital funds raised $2.8 billion and buyout funds raised $17.8 billion during the fourth quarter of 2006, making it the weakest fundraising period all year, according to Thomson Financial and the National Venture Capital Association.

During the same quarter last year, VC funds raised $9.2 billion and buyout funds raised $32.9 billion.

But overall, funds swelled in 2006. Venture capital funds had their best year since 2001, raising $28.6 billion during the year, up from $28 billion the previous year. Buyout funds raised $102.9 billion last year, up from $96.1 billion in 2005, to score a record high.

"Despite the decrease in private equity fundraising for the quarter, it was a banner year for private equity fundraising as a whole," Alex Tan, global private equity research manger of Thomson Financial, said in a statement. "This sets the stage for an intriguing and exciting private equity environment for 2007," he said.

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