Sam Robinson: LPs still have money to invest

The director of private equity for London-based fund of funds manager SVG Advisers says new funds are unlikely to go to market until 2010, yet firms now fundraising still have sources of capital. He also thinks the current environment making large deals difficult to execute will change in two to three years.

How will the global financial crisis affect private equity fundraising over the next 12 months?

Sam Robinson, director of private equity for London-headquartered SVG Advisers, said:

“While we are unlikely to see new funds rushed out into this market, those already raising capital will continue as they genuinely need to. However, existing funds that are 50 percent or so invested will most likely put their remaining money to work over the next 12 to 24 months and delay raising their next funds until 2010.

Sam Robinson

Overall we are likely to see the pace of fundraising continue to slow over the next 12 months; timetables will lengthen and we will see GPs keeping their funds open for longer. But there is no question funds will be raised; sources of capital remain and LPs still have money to invest.

While today’s credit environment makes it difficult for large transactions to take place the situation is likely to change over the next two to three years, by which point GPs will want to be in a position to have capital to put to work.”

Robinson shared his perspective as part of the upcoming Fundraising Compendium in sister magazine Private Equity International.