Market troughs and credit crunches are a headache for most investors but for private equity operators they create exciting times.

So, while it might seem like a difficult task to be raising money now, local private equity firm Direct Capital said the launch of its new fund was "very much pro-cycle."

The firm aims to raise $250 million over the next few months, including $60-120 million from retail investors via its second Pohutukawa fund run with ABN Amro Craigs.