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Distressed Private Equity Funds Raising Globally

by Kamarl Simpson

  • 18 Jul 2011
  • PE

Preqin data shows that there are currently 64 distressed private equity vehicles raising globally, targeting an aggregate USD 45.8bn in capital commitments. The largest of these funds currently on the road is OCM European Principal Opportunities Fund III. The special situations fund is part of a series that seeks equity positions that result in substantial influence, control or total ownership of businesses based in Europe. OCM European Principal Opportunities Fund III is seeking EUR 3bn.

In terms of regional focus, North America-focused funds dominate with 35 distressed private equity vehicles targeting an aggregate USD 34.7bn. These are followed by 15 European funds seeking an aggregate USD 8bn in capital commitments and 14 Asia and Rest of World-focused distressed private equity funds targeting USD 3.1bn.

Data from Preqin’s Funds in Market product shows that so far this year 13 distressed private equity vehicles have reached a final close. They garnered an aggregate USD 10bn in capital commitments. The largest fund to reach a final close was OCM Opportunities Fund VIIIB which closed in April above target having raised USD 2.6bn. The fund targets distressed debt investments in the US.

The second largest distressed private equity vehicle to have closed this year was Varde Fund X. It targets distressed debt investments throughout North America, Europe and Asia across a broad range of industries. Varde Fund X closed in June on just above USD 2bn.

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