New York - Private equity fund-raising slowed to a crawl in the fourth quarter, with 99 funds raising just $43 billion, according to a new report by Dow Jones Private Equity Analyst.

That's down from the nearly $100 billion raised by 208 funds during the same period in 2007.

"The drop in fund-raising we saw in the 4th quarter marked a dramatic reversal from the first three quarters of the year, when private equity firms had been running slightly ahead of 2007's record fund-raising pace," said Jennifer Rossa, the managing editor of Dow Jones Private Equity Analyst.

"While 2008 was still easily the second-best year on record, the decline we saw in the most recent quarter may steepen in the coming months, as some large buyout shops are considering fund size cuts and many limited partners are going to have trouble finding money to commit."

Overall, private equity funds raised $265.6 billion last year, 18% below 2007 levels.

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