Buyout fundraising has picked up momentum over the last two years as confidence edges back into the industry. A total of 127 buyout funds have reached a final close so far this year, having raised an aggregate $138bn, representing a 46% increase in capital raised compared to 2012. Average buyout fund size among funds closed by year is currently at its highest level of all time, standing at $1.15bn. Previously, the largest average fund size was seen in 2007 and 2008, with both years registering a mean final close size of $1.04bn for buyout vehicles.
In terms of geographical focus, buyout capital raised with a primary focus on the regions of North America, Europe and Asia has increased this year compared to 2012. Buyout funds focused on North America have raised the largest proportion of capital, with 67 funds closed so far in 2013, having raised an aggregate $67bn. This is followed by Europe, with $54bn raised through 39 vehicles and Asia, with 10 funds having secured $14bn in LP commitments. Buyout fundraising focused on economies outside of North America, Europe and Asia has fallen slightly in comparison to 2012 levels, with $3bn raised so far this year, almost $2.5bn less than the amount garnered in 2012.
The largest buyout fund that has closed so far this year is CVC European Equity Partners VI. The €10.5bn vehicle, managed by CVC Capital Partners, invests in mid-market companies based in Western Europe.
There are currently 282 buyout funds in market, collectively seeking to raise an aggregate $209bn. Forty-two percent have held at least one interim close, having secured $54bn in LP commitments so far.