Fund raising by global private equity (PE) firms in the July-September quarter hit a two-year low on a quarterly basis in the wake of the recent crisis in the US subprime mortgage market. While a delay in their fund-raising plans may result in a temporary drop in the number of private equity deals globally, it could come as a blessing in disguise for Indian and Chinese companies planning to raise capital. Around 136 private equity funds have raised $91 billion globally during the quarter under review against $177 billion in the April-June quarter, according to Private Equity Intelligence, a global private equity research entity. “This suggests that in the short term the credit crunch (due to the subprime crisis) has had an adverse effect on fund raising,” the Private Equity Intelligence report said. But shortage of money supply is the only concern for private equity firms, especially the smaller ones, in meeting their fund raising targets. “With so many managers on the road trying to gather commitments for their funds, it is likely that managers will find it increasingly challenging to reach their original fund-raising targets. Apart from the biggest firms, and those that are able to draw entirely from existing limited partners, it is going to become an increasingly difficult time for fund managers currently on the road,” it said. Currently, there are 1,195 funds seeking a staggering $619 billion in aggregate target commitments, estimates Private Equity Intelligence. […]