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Strong start to the year for private equity fundraising

Private equity fundraising has got off to a strong, if not spectacular, start in 2014,with USD67.8bn raised from investors through the final close of 135 private equity funds globally, according to data from PEI.

By comparison, USD78bn was raised by 162 funds in the equivalent period in 2013, when more capital was raised than in any year since the financial crisis.
 
With around 15 per cent more Q1 fund closes likely to be announced over the coming days, the final figure collected is likely to end close to last year’s Q1 total. 
 
There are currently 1,842 private equity funds in market, chasing USD650bn in aggregate from investors. 
 
The largest fund closed in Q1 2014 was Chicago-based GTCR’s Fund XI, collecting USD3.85bn for investments in high growth sectors in North America.
 
Funds looking for buyout opportunities remain most popular, collecting USD27.8bn in aggregate.
 
Successful fundraising was largely driven by North-America focused funds – over USD30bn was collected by firms looking for investment opportunities in the region.
 
Dan Gunner, director of research and analytics, PEI, says: “While 2013 was the year when private equity fundraising finally got out of the doldrums, 2014 looks set to be a year of consolidation. Fundraising has not quite hit the heights of 2013 yet, but our conversations with investors indicate positive sentiment towards the asset class and, with over 1,800 funds currently on the road, we expect to see a similar full-year result this year to last.”

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