Twenty-three unlisted natural resources funds reached a ﬁnal close in Q3 2018, with the $38bn secured in capital commitments marking an eight-quarter high since Q3 2016. The strength of fundraising in the first three quarters of 2018 is further illustrated by the proportion of funds meeting or exceeding their target size, with 78% doing so during the period, compared with just 60% of those closed in 2017 and 56% in 2016. Despite this success, the fundraising market has had its challenges, with the average time spent on the road reaching 17 months for funds closed in 2018 to date, compared with 16 months in 2017 and 13 months in 2016.
The clear majority (83%Ntu) of funds closed in Q3 2018 are North America- or Europe-focused vehicles; only one Asia-focused fund reached a ﬁnal close, raising $0.4bn. Energy-focused funds continue to dominate: with 22 funds securing $37bn, it is well ahead of all other natural resources strategies. This dominance is further evidenced in the table below, with the five largest funds closed in Q3 2018 all employing energy as a primary strategy.