LT Funds

PE Fundraising Steady But More Time-Consuming

by

April 5, 2012

In the first quarter, some USD 50.6 billion was raised by PE funds, which is comparable to recent quarters, reports Preqin. Competition is intense, according to Preqin, as the number of funds on the road hits a record 1,858.

 

In addition to the 116 funds that held a final close in the quarter, a further 123 funds held interim closes, securing a combined USD 33.7 billion towards their fundraising targets. Preqin expects to see some improvement in private equity fundraising figures in the coming quarters, according to Helen Kenyon, Senior Manager and Preqin spokesperson.

Key Facts.

  • North America funds raised the most capital; Europe-focused funds were next.
  • Buyout funds raised the most capital of all funds closed in Q1 2012, with 23 funds closing
  • Venture funds were the most numerous amongst those that closed, 35 funds raised USD 9.7 billion
  • It is taking increasingly longer to close funds. In Q1 2012 it took an average of 20.9 months to fundraise. This exceeds the previous average high of 20.4 months for funds closing in 2010.
  • Looking forward, the survey revealed 75% of investors were satisfied with the returns generated by their private equity portfolios. (Image Source: ibid)
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