New York (HedgeCo.Net) – Private equity investments and fundraising last quarter reached their highest first quarter levels since 2008, according to the Private Equity Growth Capital Council’s quarterly Trends Report. Continuing a seasonal trend for first quarter activity, private equity investment volume and fundraising dropped compared to the fourth quarter.

Similarly, exit volume declined, but still outperformed first quarter results since 2005.

“Despite the severe winter weather, private equity activity in the first quarter was a bright spot for the U.S. economy,” said Bronwyn Bailey, PEGCC Vice President of Research. “Private equity activity continues to experience year-over-year growth since the Great Recession, providing a source of capital to promising companies and investment returns to pension funds, charitable foundations, and university endowments.”

In addition, the PEGCC Trends Report found that dry powder grew 5 percent, from $391 billion in December 2013 to $412 as of March 2014. Equity contributions were calculated at 38 percent during the first quarter.

“In the first quarter alone, private equity continued to drive economic growth by investing $110 billion in U.S.-based businesses and returning $49 billion to investors who secure retirements for millions, engage in charitable pursuits, and provide financial aid to students,” said Steve Judge, PEGCC President and CEO.