europeanventuretrends

Fundraising Up in 2011 Driven by Buyout Appeal

by

January 11, 2012

Buyout fundraising ended the year more positively than it started, but VC fundraising fizzled, according to the latest figures from Dow Jones LP Source. For the entire year, there was a slight decline in the number of funds that held closings but a 22% increase in capital raised compared to 2010, when 409 funds raised $100.5 billion. During the fourth quarter of 2011, limited partners committed $29 billion to 104 fund closings.

Europe had its strongest quarter of the year as 2011 came to close. LPs committed EUR14.9 billion in total. Some 140 European funds raised USD 52.9 billion in 2011, again fewer funds raised more money than the previous year. There was a 53% increase in capital committed to PE in Europe l.

Other fundraising trends

  • Secondaries were up in Europe and down in the US. Overall, the Secondary market collected USD5.8 billion for 20 funds in 2011, a 44% drop in capital collected from 2010. It is the first year of decline breaking a three year trend.
  • Funds of funds did better in 2011 than the previous year (45 funds raised USD 8.9 billion, a 37% increase. European FoF are continuing to be unpopular. Only seven were raised for a total of USD 398 million, just 10% of the total FoF capital raised in 2010.
  • It was a strong fourth quarter for VC fundraising, but the year’s total were lackluster compared to previous years – slightly more than half the 2008 total was raised lasat year. In Europe, venture capital fund-raising set a record low at just USD3 billion in 2011, a 20% decline.    Graphics Source: Dow Jones LP Source


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