Following Q2’s strong fundraising of 141 billion, the greatest quarterly amount of capital raised since Q4 2008, third quarter fundraising for private equity funds has declined with 187 funds reaching a ﬁnal close on $89 billion in capital commitments.
The $89 billion in capital raised is still a strong showing and, according to Preqin, long-term performance continues to attract investors to the asset class, with private equity outperforming the S&P 500, MSCI Europe and MSCI Emerging Markets Indices over the longer horizon periods of three, five and ten years. A survey conducted by Preqin at the end June 2013 supports this conclusion and suggests that appetites for the private equity asset class will persist over the remainder of the year, with 92% of limited partners expecting to commit the same amount or more capital to funds in coming year as they did in the last 12 months.
Other finding s in the Preqin report show that private equity-backed buyout deal flow has increased in terms of the number of deals, but the amount of capital invested has decreased. A total of 674 private equity-backed buyout deals were announced globally in Q3 with an aggregate value of $61 billion.
For a free copy of Preqin’s Quarterly Private Equity Update click HERE.
Preqin is a provider of information for the alternative assets industry, providing data and analysis via online databases and publications (www.preqin.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-18-13