Private Equity Funds and Upcoming Opportunities

Despite the turmoil in the financial markets, fundraising by private equity firms is only off 3% when comparing first quarter 2008 to first quarter 2007. A closer look at the details of where private equity firms place their money reveals important clues for agencies preparing to land new business.

  • Funds intended for venture capital increased from $10 billion to $11.5 billion or 15%.
  • Funds intended for mezzanine finance, or the late levels of funding before IPOs are filed, increased from $2.3 billion to $24 billion or $21.7 billion.

Some of this late stage investing has occurred in the high-​growth videogame industry. According to a report in Mass High Tech, firms such as Turbine are expanding their product suite beyond MMO (massively multiplayer online) games to console (think XBOX) capable games. Venture capital companies such as Polaris Venture Partners have bought into the concept while releasing $40 million as a third round investment in Turbine.

Look for competition to heat up in the cross-​platform game development industry. This competition should spur the need for advertising to generate awareness and demand.

Sources: Dow Jones release, 7.8.2008; Calnan, Michael. “Turbine plans to change video games with growth,” Mass High Tech, 6.27.2008

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.