The latest data from Preqin’s shows that 179 private equity funds closed in Q3 2013, securing an aggregate $87 billion, a figure which is expected to increase by 10-20% as more information becomes available. A total of 606 funds have closed so far in 2013, which is less than the 684 funds which closed during the same period last year.
Funds closed since the start of 2013 have taken an average of 18.5 months to reach a final close, compared to 17.8 months for funds closed in 2012 and just 11.3 months for funds that reached a final close in 2006.
Key Facts:
- Fundraising by Region: 113 North America-focused funds closed in Q3 having secured $57 billion accounting for 66% of aggregate capital raised by funds closed in the quarter. $22 billion was secured by 24 Europe-focused funds closed in the quarter, while 20 Asia-focused funds secured $4 billion.
- Fundraising by Type: 31 buyout funds closed in Q3 2013, securing an aggregate $28 billion, down from the $58 billion secured by buyout funds in Q2 2013. 48 venture capital funds closed during the quarter having secured $6 billion.
- Average Fund Size: The average size of private equity funds closed in Q3 2013 was $532 million, down from $696 million for funds closed in Q2 2013. The average size of buyout funds decreased significantly from $1.8 billion for funds closed in Q2 2013 to $996 million in Q3 2013.
- Notable Funds Closed in Q3 2013: CVC European Equity Partners VI was the largest fund to close in the quarter, having raised €10.5 billion in 7 months, and it accounts for almost 63% of capital secured by Europe-focused funds closed in Q3 2013. Distressed debt fund, GSO Capital Solutions Fund II, closed on $5.0 billion.
- Interim Closes: In Q3 2013 a further 160 private equity funds held interim closes raising a total of $45 billion in the quarter towards their targets.
- Funds in Market: A record 1,990 private equity funds are in market as of the start of October, seeking to raise an aggregate $721 billion.
- First-time Funds: 35 first-time funds raised an aggregate $4 billion in Q3, down from the 41 first-time funds that closed in Q2 and raised $6.9 billion in total.
“Fundraising figures for so far in 2013 have been encouraging with an increase of 20% in the amount of aggregate capital raised compared to the same stage in 2012,” said Ignatius Fogarty – Head of Private Equity Products. “However, 2013 has seen a decline in the number of funds raised, with the quarterly number of funds closed at its lowest level in six years, supporting the fact that many investors are increasingly looking to place more capital with larger and more established managers. With a record breaking number of private equity funds currently in the market competing for capital, the remainder of 2013 is set to continue to be highly competitive for fund managers.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-2-13
