Equistone Pauses Fundraising After Missing €2.5 Billion Target

European mid-market private equity firm Equistone has paused raising money for its flagship fund and is exploring alternative formats after failing to reach its initial goal of around €2.5 billion ($2.6 billion), people with knowledge of the matter said.

Equistone recently told investors it’s temporarily pausing fundraising efforts for Fund VII, the people said, asking not to be identified because the information is private. It’s in exploratory discussions about raising money in different ways, which could include strategies more narrowly focused on particular sectors or geographies, the people said.

The fresh methods being explored could take the shape of new ...