End of year tallies from Preqin reveal that PE raised in 2013 the largest amount of capital globally since the financial crisis of 2008. Global private equity fundraising throughout 2013 totaled USD 431bn, 13% up on 2012 levels.
The previous high point was when USD 688bn was raised by funds closed in 2008. Preqin’s research shows that this growth in capital raised has been led by strong fundraising activity for North America- and Europe-focused funds, while funds focused on Asia and other regions have seen a significant drop in fundraising levels.
Another Preqin study revealed that the aggregate value of PE-backed buyout deals also hit a high with 2,830 private equity-backed buyout deals announced throughout 2013 representing an aggregate value of USD 274bn, the highest value since USD 661bn worth of deals were announced in 2007 (See chart).
Preqin said that PE “buyout firms have had their strongest year of dealmaking since before the global financial crisis…though this the number of deals taking place has actually fallen by 11% from the year before”.