US growth PE fundraising rebounds to record H1 high
TOP STORY: US private equity managers targeting high-growth businesses without seeking control are seeing a sharp revival in fundraising, with growth equity funds attracting a record $33.2bn in the first half of 2026, according to a report by the Financial Times.
Private equity managers focused on high-growth businesses are experiencing a surge in fundraising, with growth equity funds amassing a record $33.2bn in the first half of 2026, according to a Financial Times report. This is a 36% increase compared to the same period last year and marks the highest first-half fundraising performance for the strategy on record.
Total capital raised in other private equity strategies also rose by 20% over the same period. Despite a decrease in the number of managers entering the market, with only 87 growth funds raising capital in the first half of 2026, down from 96 in the same period in 2025, investor interest remains strong. Established and specialist firms alike have benefited from renewed demand, aided by the rise of artificial intelligence and more moderate private company valuations.
Growth equity fundraising saw a significant boom during the pandemic-era technology boom, totaling $67bn in 2021, driven by loose monetary and fiscal policies. However, a slowdown in market conditions led to a drop in fundraising to $29bn in 2023, as investors pulled back. The trend has since reversed, with fundraising increasing in both 2024 and 2025, and it is now poised for another rise this year.
Falling private company valuations and the emergence of major AI companies have provided further impetus for the strategy.
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