We investigate the link between monetary policy and the capital raised and invested by private equity funds between 2000 and 2017. Using fund level data for over 10000 managers, we find that lower US interest rates are associated with more fundraising, especially by strategies which use more leverage. When fundraising is more easily available, managers who subsequently deploy the committed capital tend to invest faster. The deployment speed is also linked to the level of policy interest rates although not in the expected direction. This suggests that policymakers should monitor more closely the impact that loose monetary policy can have on this growing asset class.