It’s been a record year. Things should start to cool off. 

Private equity fundraising is set to decline next year, according to Pitchbook. In a report, the research firm projected that PE capital raising would slow down in the European and American markets as companies look to deploy capital. The slowdown would follow what has been a record year for capital raising in the sector.

“Plenty of large funds could be on the road — even making investments in the meantime — but may not hold a final close until 2021,” Dylan Cox, Pitchbook lead private equity analyst, told Financial News. 

Next year will likely see a slowdown in the massive $10 billion or more funds we’ve seen close in 2019. Blackstone Group raised more than $26 billion for its largest vehicle this year (Blackstone Capital Partners VI). Leonard Green just recently raised $12 billion for a flagship fund. Last month alone, data shows that funds raised $42.2 billion in November.

Factors Driving a Decline in Private Equity Fund Raising

In addition to deployment, analysts suggested another important factor that could fuel a decline in capital raising. A drawdown In equity markets could produce “a ‘denominator effect’ in which LPs must slow the pace of new commitment to PE since other parts of the portfolio have seen devaluations,” analysts said.

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