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Buyout Funds Investing in the OECD Region

by Jessica Duong

  • 16 Jan 2012
  • PE

There are 125 buyout funds currently in market that focus investments solely on member states of the OECD economic region (Organisation for Economic Co-operation and Development) and they are collectively seeking USD 76 billion in capital commitments. A breakdown by geographic focus shows that 61% of the funds are North America-focused, 24% target investments in OECD European countries and the remaining 15% are focused on Asia and Rest of World regions within the OECD.

Of these 125 funds in market, 17 funds have a target of USD 1 billion or more; three are targeting USD 5 billion or more. There is great diversity in target size within the group of funds, ranging from a USD 15 million vehicle to a USD 7.1 billion vehicle. The average target size of these OECD-focused buyout funds in market is USD 608 million, compared to the USD 774 million average target size for all buyout funds currently seeking capital.

Preqin’s Funds in Market data reveals that 51 of the 125 OECD-focused buyout funds have held at least one interim close, attracting USD 13.7 billion in aggregate commitments. The largest buyout fund that is currently raising and targeting OECD states is Cinven V, a private equity vehicle from UK-based fund manager Cinven. The fund focuses on buyout investments throughout Europe, with a particular focus on France, the UK, the Netherlands and Germany, and is targeting EUR 5 billion (USD 7.1 billion). The next two largest funds are Providence Equity Partners VII and Green Equity Investors VI, which are targeting USD 6 billion and USD 5 billion respectively.

Within the past 12 months, 63 buyout funds that target OECD countries reached a final close. These vehicles raised an aggregate USD 37.4 billion, to be invested across or within those states which are members of the OECD. The largest fund was EQT VI, which recorded a final close of over USD 6.5 billion.

 

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