Private equity fund closings fell by 37% in the first three months of the year compared with the same period in 2023, to just 150, the lowest figure seen in any quarter since 2018, according to a report by Pensions & Investments.
The report cites the latest private equity update from data provider Preqin in revealing that, despite the big fall in the volume of closing, aggregate capital raised declined by just 6% year-on-year to $166.8bn, suggesting continuing consolidation in the sector.
North America led the way with 90 fund closings in the first quarter of 2023 — 60% of the total — followed by Europe with 45 (30%) and Asia-Pacific with 11 (7.3%).
Despite APAC’s total representing the lowest number of closings in the region since 2018, Preqin says the the region “remains resilient for private equity” on the back of an increase in activity in China. Buyouts in the world’s third largest economy were up in the fourth quarter of 2023, while “private equity deals surged at year-end, and Chinese private equity exits are also on the rise”, according to Preqin.
