Private equity fundraising is analyzed in this extract from the Preqin Quarterly Update: Private Equity, Q2 2015, featuring the latest data and breakdowns by fund strategy and geographic focus.
Following the typical drop-off in the number of funds closed from Q4 to Q1, Preqin’s Q2 2015 data shows a levelling off of vehicles reaching final close, with 243 funds closed during the quarter (Fig 1). However, there has been a continued dip in capital raised, with USD113bn secured by funds closed in Q2 2015, down from 241 funds securing USD129bn in Q1 2015.
In line with the trend observed in Q1 2015, real estate funds raised the most capital during Q2; 49 funds secured a combined USD26.5bn (Fig 2). Two of the largest funds closed in the quarter were real estate funds, raised by real estate giants Lone Star Funds and AXA Real Estate. Venture capital vehicles were the most numerous fund type in terms of final closes held in Q2 2015, with the 80 funds closed accounting for 13% (USD14.4bn) of capital raised during the quarter. We also note that within the North American market specifically, fundraising for venture capital funds exceeded that for buyout funds, which has only happened once before in Q1 2012.
The largest fund to close in Q2 was Lexington Capital Partners VIII. With a final close size of USD10.1bn, the secondaries fund raised 55% more capital than the second largest vehicle. North America-focused funds continue to dominate fundraising statistics both by number of funds raised and aggregate capital collected. Funds targeting this region represented 55% of all vehicles raised during the quarter and accounted for 65% of capital raised in Q2 2015 (Fig 3).
Preqin releases quarterly reports covering private equity, hedge funds, infrastructure, real estate and private debt. All five quarterly updates can be accessed for free in our Research Center.
