First-Time Private Equity Funds Struggled to Raise Capital in Q1

Of the 641 first-time funds currently on the road, Preqin said, 242 had already secured an aggregate $25 billion toward their overall targets via interim closes. But that meant 399 had yet to hold an interim close.

Twenty first-time funds were targeting more than $1 billion.

Not all of Preqin's news was bleak. It reported that several first-time funds have recently experienced fundraising success.

SwanCap Investment Management reached a final close in the first quarter on $1.2 billion for its debut fund, SwanCap Opportunities Fund, after less than 12 months on the road.

"Despite private equity fundraising figures as a whole continuing to improve, it is undeniable that first-time funds managers face a tough challenge in attracting investor capital," Ignatius Fogarty, head of private equity products at Preqin, said in a statement.

"Investors still remain cautious toward allocating new capital to private equity funds and are more comfortable placing capital with larger, more experienced fund managers with a proven track record."

Still, he said, some investors were willing to invest in first-time funds, particularly if they were better suited to their investment capabilities and needs, or offered diversified strategies.

First-time funds can also be used as an alternative to the hard-to-access big brand names.

"While the year ahead will remain difficult for first-time fund managers, those that offer a unique investment story and desire to succeed will be the most successful in securing capital commitments," Fogarty said.