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Australasia Private Equity Fundraising - 2008 to August 2012

by Yong Xiang Pua

  • 13 Aug 2012
  • PE

Between 2008 and August 2012, 46 Australasia fund managers successfully held a final close for 53 private equity funds (excluding funds of funds and real assets funds), raising $16.5bn in aggregate capital commitments. Buyout funds represent 38% of the private equity funds closed by Australasia fund managers within this period. They are also responsible for 70% of the capital raised in the region, making buyout funds the largest fund type within Australasia by capital. While natural resources funds make up only 9% of the private equity funds closed in the region, they collectively account for 19% of the capital raised in Australasia from 2008 to present. Other significant fund types that have held a final close within the same timeframe include early stage funds and growth funds.

Seventy-seven percent of the Australasia-based private equity funds closed between 2008 and August 2012 invest solely in the Australasia market, while another 19% invest in the region as part of a broader investment strategy. The latter pool of funds predominantly allocates to Asia, Europe, and North America. Only two funds that successfully held a final close in the time period invest outside of Australasia, each targeting Asia and Africa opportunities respectively.

Having successfully raised an aggregate $3.7bn in LP capital in 2008, Pacific Equity Partners Fund IV was the largest private equity fund raised by an Australasia GP between 2008 and August 2012. Alongside 14 other private equity funds, Australasia GPs successfully raised more than $5bn in total during 2008, making it the best fundraising year for Australasia managers within this period. While an equal number of private equity funds completed fundraising in 2009, these funds only managed to garner a total of $2.8bn, or 55% of the aggregate capital raised in 2008.

Australasia GPs went on to raise $3.2bn via 11 private equity vehicles in 2010. CHAMP Private Equity ended its fundraising campaign for CHAMP Buyout III on a high note, closing its third buyout fund at $1.5bn. However, appetite for private equity funds raised by Australasia fund managers declined to a low the following year, when only four funds gathered an aggregate of $1.8bn in total commitments. The bulk of this capital was raised by Archer Capital’s Archer Capital Fund V, which accounted for 85% of the capital raised by Australasia fund managers in 2011.

In 2012 to date, eight Australasia-based private equity funds have successfully reached a final close, collecting a total of $3.7bn in LP capital, a change from the previous declines in Australasia fundraising figures. Prominent funds that have held a final close in 2012 include Sentient Group’s $1.3bn Sentient Global Resources Fund IV, CHAMP Ventures’ $486mn CHAMP Ventures Investments Trust VII, and Archer Capital’s $307mn Archer Capital Growth Fund 2. With less than four months left of 2012, there are another 20 Australasia private equity funds currently on the road, targeting close to $5bn in total capital commitments.

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