Private equity fundraising has remained relatively steady in the first quarter of the year, Preqin data shows. with current figures expected to increase by around 10-20% as further information becomes available, fundraising levels could come close to matching those seen in the last quarter of 2011.
In addition to the 116 funds that held a final close in the quarter, a further 123 funds held interim closes, securing a combined USD33.7bn towards their fundraising targets.
Funds primarily focusing on North America raised the most capital of those closed during Q1 2012, with 67 funds closing having raised a total of USD27.3bn. Europe-focused funds that closed raised an aggregate USD15.1bn, with 23 funds targeting the region reaching a final close this quarter. A total of 26 Asia and Rest of World-focused funds closed having raised a total of USD8.2bn.
Buyout funds raised the most capital of all funds closed in Q1 2012, with 23 funds closing with an aggregate USD18.5bn. This figure includes the Europe-focused BC European Cap IX, which closed having raised USD6.4bn. Venture funds were the most numerous amongst those that closed in Q1 2012; 35 such funds closed having raised a total of USD9.7bn.
As of April 2012, there are 1,847 funds on the road seeking a combined USD784bn, an increase on the USD680bn sought by the 1,676 funds on the road at this point last year, but still significantly less than the USD888bn sought by 1,624 funds on the road as of January 2009.
Funds that closed in Q1 2012 took an average of 20.9 months to fundraise. This exceeds the previous average high of 20.4 months for funds closing in 2010.
Investors are still exhibiting an interest in private equity, with a significant 38% planning to increase the number of GP relationships they maintain and just 14 % expecting to decrease the number of GPs in their portfolios. Furthermore, 75% of investors interviewed by Preqin in December 2012 stated that they were satisfied with the returns generated by their private equity portfolios.
“Private equity fundraising has remained steady in the first quarter of 2012,” says Helen Kenyon, senior manager and Prqin spokesperson. “As we anticipate the latest quarterly fundraising figures to improve by around 10-20% as more information becomes available, fundraising in Q1 2012 is likely to be comparable to the last quarter of 2011. Encouragingly, in addition to the 116 funds holding a final close, a further 123 funds held an interim close during the quarter, securing a combined USD33.7bn towards their overall fundraising targets. This suggests that we could see some improvement in private equity fundraising figures in the coming quarters.”
