New York - Despite credit market turmoil, U.S. private equity firms raised a record $302 billion in 415 funds last year, according to the January issue of industry newsletter Dow Jones Private Equity Analyst.

That marks a 19% increase over the $255 billion raised in 404 funds during 2006. Leveraged buyout (LBO) and corporate finance funds accounted for 75% of all commitments.

The newsletter said that much of the growth within the LBO area can be attributed to booming interest in distressed-focused funds, which saw nearly $45 billion invested.

"With creditors tightening their belts, the days of easy financing are over and private equity investors are positioning themselves to capitalize when overextended companies fall into trouble in the months and years ahead," said Jennifer Rossa, the managing editor of Dow Jones Private Equity Analyst.

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