The number of private equity funds of funds raised in 2013 dropped 17% to 72 from 87 in 2012, while the total amount of capital raised fell 25% to $12 billion from $16 billion, according to data released on Thursday by alternative investment research firm Preqin.
The numbers are down from a high of 164 funds closing on a total of $58 billion in 2007.
At the same time, some 65% of private equity funds-of-funds managers indicated in a Preqin survey that separate accounts would be as important or more important to their investment activity in the next 12 months than commingled funds. The average size of private equity funds-of-funds managers' separate accounts is about $250 million.
The private equity funds-of-funds firms with the most assets in separate accounts are Hamilton Lane with $18.9 billion; Pathway Capital Management, $14.5 billion; and BlackRock Private Equity Partners, $9.3 billion.
Some 24% of private equity funds-of-funds managers surveyed stated that they invested more capital from separate accounts in the past 12 months than in the prior 12-month period.