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Funds Currently in Market with a Target of at Least $1bn - September 2013

by Laura Duce

  • 11 Sep 2013
  • PE

Of the private equity funds currently in market, there are 160 vehicles with a target size of at least $1bn, collectively targeting over $330bn. Unsurprisingly, the majority of these funds are buyout funds, with 29% of the 160 funds applying a buyout strategy. This is closely followed by infrastructure funds, with infrastructure funds representing 26% of these funds, and real estate vehicles, which account for 18%.

The majority of these 160 funds in market are targeting North American investments, with more than half (53%) of funds with a target size of at least $1bn focusing on this region. North America-focused funds are also targeting the largest aggregate capital size, with a collective target of $196bn, representing almost 60% of total target capital by the 160 funds. This is followed by Europe-focused vehicles, with 40 vehicles focusing on this region targeting an aggregate $77bn, and then funds focused on Asian investments, with 19 Asia-focused vehicles targeting an aggregate $40bn.

North America-based fund managers are raising the majority of funds with a target size of at least $1bn, with 59% of these funds in market being raised by GPs located in the region. These funds are targeting over $220bn, representing 67% of the total capital being raised by these 160 funds. Roughly 45% of the 160 funds have no core industry focus, but instead invest across a variety of industry sectors. Of these private equity funds excluding real estate and infrastructure vehicles, the next most common core industry focuses of the 160 funds are the energy and utilities and industrials sectors.

The three largest funds currently in market are the Apollo Investment Fund VIII, Carlyle Partners VI and KKR North American XI Fund, with target sizes of $12bn, $10bn and $10bn respectively. All three of these funds are following a buyout strategy, have a diversified industry sector focus, and have held at least one interim close so far. The three vehicles are also all being raised by a North America-based fund manager, and have a focus on North American investments.

Of the funds closed in 2013 to date, 64 funds targeted at least $1bn in capital commitments, with an aggregate target of almost $180bn. Of these funds, 86% held a final close on at least $1bn, raising an aggregate of $188bn from investor capital. The largest fund to have closed so far this year is CVC European Equity Partners VI, a buyout fund with a final close of €10.5bn and a focus on Western European investments with a diversified industry sector focus.

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