Growth Funds in Market

by Laura Duce

  • 31 Oct 2011
  • PE

Preqin’s Funds in Market product shows that there are currently 185 growth funds seeking capital commitments. Such funds make unleveraged buyout deals that take significant majority positions in mature, profitable companies looking to expand. Collectively, these funds are targeting an aggregate USD 56 billion in investor capital.

Of these 185 growth funds, 71 have already held at least one interim close, and aggregate commitments currently stand at just over USD 6.6 billion. Over 71% of all growth funds in market predominantly seek investment opportunities in the Asia and Rest of World region. Nearly 17% of these funds primarily target Europe, and 12% mainly focus on North American opportunities.

The average target size of a growth fund currently raising is USD 318 million, with the largest fund targeting USD 3.5 billion. The largest three funds are Actis Emerging Markets 4, TPG Star II, and CITIC Private Equity Fund III, which are targeting USD 3.5 billion, USD 2 billion and CNY 10 billion respectively. All three funds seek investment opportunities across Asia, with Actis Emerging Markets 4 targeting emerging markets across Asia and Rest of World, TPG Star II investing in China, India and across North America, and CITIC Private Equity Fund III focusing exclusively in China.

Since the beginning of 2011, 57 growth funds have held a final close, raising an average USD 337 million each, and total aggregate commitments of over USD 19 billion. The main fund focus of these closed funds is the Rest of World region, with the vast majority of these primarily focused in Asia

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