The last quarter’s private equity fundraising is analysed in this extract from the Preqin Quarterly Update: Private Equity, Q3 2015.
With the third quarter of the year typically slow for fundraising, it is surprising to see Q3 2015 as the best quarter in 2015 so far in terms of aggregate capital raised. There were 178 funds that reached a final close, securing an aggregate USD137 billion (Fig 1). The number of funds raised, however, has seen a sharp drop from the previous quarter, causing a marked rise in the average private equity fund size.
Buyout funds in particular collected the greatest amount of capital, with 34 funds reaching final close in Q3 and raising an aggregate USD46.7 billion (Fig 2). Fig 3 shows that 2015 saw the best third quarter for buyout fundraising since the financial crisis. The same number of real estate funds reached a final close in Q3 but only USD37.7 billion was raised in comparison.
In terms of geographic focus, North America-focused funds raised the greatest amount of capital, with 89 funds reaching a final close in Q3, securing USD80 billion in total capital. There were also 42 Europe-focused funds and 27 Asia-focused funds to hold a final close, securing an aggregate USD34 billion and USD15 billion respectively. The largest fund to reach a final close was Blackstone Real Estate Partners VIII, which collected USD15.8 billion, significantly more than the second largest fund, EQT VII, which closed on EUR6.8 billion.
This article is an extract from the Preqin Quarterly Update: Private Equity, Q3 2015, one of five quarterly editions that also cover hedge funds, real estate, infrastructure and private debt. Download all of the reports for free by visiting our website.