The Money Behind the Private Equity Boom

Low-profile pension funds are funding the historic buyout wave, to pay for the retirement of teachers and other government workers

It isn't even Thanksgiving yet, but private-equity funds already have raised more money than they did in the record-breaking year of 2000. U.S. private-equity firms have raised $177.89 billion so far this year, exceeding the $177.75 billion record of 2000, industry newsletter Dow Jones Private Equity Analyst announced Nov. 3. And fund-raising could end the year at $225 billion, far exceeding the $159 billion raised in all of 2005, the newsletter said.

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