Preqin’s Funds in Market database shows that there are currently 453 funds in market with a main geographic focus on Europe, which are targeting an aggregate €144bn in investor commitments. The average target size of Europe-focused funds currently on the road is €318mn, and of these 453 funds, 232 (51%) have already held at least one interim close, having so far raised an aggregate €35bn towards their final target.
The most common Europe-focused private equity fund type on the road in terms of aggregate capital targeted is buyout, with 70 funds targeting an aggregate €46bn for buyout investments. This is followed by private equity real estate funds whereby 117 funds are targeting €34bn and infrastructure funds, with 57 funds targeting €24bn for private equity infrastructure investments. With regards to fund manager location, 121 funds are being managed by UK-based firms, followed by France with 55 funds, and Germany with 38 funds.
The three largest Europe-focused funds in market by target size are Apax VIII, Permira V, and Russia-China Investment Fund, all three of which target buyout investment opportunities. Apax VIII is targeting €9bn and reached a first close in March 2012 having raised €4.3bn, while Permira V aims to raise between €4bn and €5bn. Both Apax VIII and Permira V focus on a diversified range of industries including financial services, consumer services, healthcare, and TMT sectors. Russia-China Investment Fund has reached a first close on $1bn and is targeting $4bn overall in capital commitments. The fund focuses on a range of sectors, with approximately 70% of capital to be invested in Russia and the remaining 30% in China.
Over the past 12 months, 161 Europe-focused private equity funds have held a final close, having raised aggregate capital commitments of €64bn. The average final close size was €399mn and 8% of these funds raised over €1bn in capital commitments.