Current Global Growth Venture Capital Fundraising

by Adam Counihan

  • 10 Jan 2011
  • PE

Preqin’s research reveals that there are 165 growth stage venture capital vehicles fundraising at present targeting an aggregate USD 39.2 billion. 50% of these funds have already had at least one interim close having raised USD 6.7 billion.

In terms of the number of vehicles currently on the road 13% target the North American market, 23% focus on investments in Europe, while the remaining 64% of the funds are seeking investment opportunities in the Asia and Rest of World region.

The average fund size targeted by growth stage venture capital funds on the road is USD 245 million. The biggest growth stage fund currently in market is AVIC Fund of China managed by Yufeng Fund Management, a vehicle seeking CNY 20 billion (USD 2.95 billion). It is followed by Hospitality Development Fund and KIPCO Opportunity Fund, managed by Abu Dhabi Investment House and Kuwait Projects Co. respectively, and both having an initial target size of USD 1 billion.

Preqin data shows that from 2007 to present USD 57 billion in capital has been raised by growth stage venture capital fund managers. Of the 227 funds that reached final close since 2007, 128 primarily focus on investing in Asia and Rest of World. These 128 funds accounted for 55% of the aggregate capital raised worldwide. Funds focusing on growth stage venture investment in North America region accounted for 27% of aggregate capital raised globally, while the 55 Europe-focused funds raised in this time accounted for 18%.

Data from Preqin’s Funds in Market product shows that so far in 2011 there has been one growth stage venture capital fund to reach a final close. The fund, Plexus Capital II, garnered USD 165 million in capital commitments and provides growth capital to profitable middle market companies throughout the Mid-Atlantic and Southeast US. The largest growth fund ever to reach a final close is Citigroup International Growth Partnership II managed by Citi Venture Capital International. The fund closed in August 2008 on USD 4 billion, exceeding the funds original target of USD 3.5 billion. The fund focuses on venture investment, with a particular focus on growth stage investments, in industries such as business services, computer services and financial services in emerging countries.

For more information on private equity fundraising please see Preqin's Funds in Market product.

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