Less than 25% of private equity partnerships that raised money in 2000 remained active in the business in 2003, according to a new report by Mercer Investment Consulting. Also, the amount of capital raised by general partners in 2002 and 2003 was less than half that raised in the two previous years, the study showed. In 2003, venture capital firms raised 113 funds with total assets of $10.8 billion, and buyout firms raised 73 funds with total assets of $26.7 billion. In 2000, venture capital firms raised 629 funds with assets of $105.4 billion, and buyout firms raised 158 funds with assets of $76.5 billion.
In the three months ended Dec.31, venture capital funds returned an average of 4.8%, compared with 9.1% for buyout firms and 7% for private equity funds. For the year ended Dec. 31, venture capital returned an average of 8.1%, and buyouts, 9.1%; private equity overall returned 18.3%.