New York - Despite tightening credit markets, private equity firms continue to find limited partners eager to invest in their new funds, according to Dow Jones Private Equity Analyst.

The October issue reports that U.S. private equity firms raised $199 billion in 295 funds during the first three quarters of 2007 -- a 29% increase over the $154 billion raised in 232 funds during the same period in 2006.

With another 405 private equity funds still in the market to raise an additional $165 billion in capital, this year's fund-raising is on pace to best the record $254 billion raised in all of 2006.

"Many limited partners recognize that private equity is a long-term investment," said Jennifer Rossa, managing editor of Dow Jones Private Equity Analyst.

"They know that consistently committing capital to the asset class over time -- and not just when market conditions are good -- is the best way to generate a strong return."

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