Two Private Equity Firms Raise Debut Funds Amid Economic Uncertainty

At the outset of 2009, many in private equity worried that the troubled economic climate would make fund raising next to impossible. According to Financial News, private equity fund raising in the first three months of 2009 dropped to its lowest level in more than five years.

However, firms with the right focus and experience were able to overcome these difficulties. Two Stanton Public Relations & Marketing clients, Huntsman Gay Global Capital and Pine Brook Road Partners, were each able to raise more than $1 billion for their debut funds.

Huntsman Gay Global Capital announced the final closing of its first fund with total capital commitments in excess of $1.1 billion. Co-founded by Robert C. Gay, a former managing director of Bain Capital, and Jon M. Huntsman, one of the world's leading industrialists, the fund focuses on middle market leveraged buyouts and growth equity investments.

Pine Brook Road Partners closed its first fund with capital commitments in excess of $1.43 billion. See story here. Pine Brook is differentiated from other private equity firms by its investment approach, which calls for starting businesses instead of buying companies, investing through a line of equity to grow them, and not using financial leverage to create returns.