Placement Agent Use by Funds in Market – June 2012

by Nicholas Jelfs

  • 18 Jun 2012
  • PE

There are currently over 1,900 private equity funds on the road seeking capital commitments in excess of $800bn. Almost 800 of these vehicles have completed at least one interim close and have raised a collective $166bn in capital towards their respective targets. Forty-one percent of the funds currently on the road seeking capital have enlisted the services of placement agents to assist with fundraising. This represents a slight decline on the 50% of vehicles that completed fundraising over the previous 12 months that used placement agents.

Of the private equity vehicles in market that predominantly focus investments across North America, 41% have employed a placement agent to help raise capital commitments. For Europe-focused funds, 42% are using a placement agent and for Asia and Rest of World-focused vehicles a total of 39% of funds have enlisted their services. By fund type, 58% of buyout funds in market have engaged the use of placement agents, compared to 38% of real estate funds, 36% of growth funds and 24% of venture capital vehicles.

Credit Suisse Private Fund Group is helping to raise capital for the most funds currently on the fundraising trail, with a total of 21 funds having enlisted their services, representing a collective fundraising target of an aggregate $26bn. This is followed by MVision Private Equity Advisers, which is helping to raise 14 funds, and Park Hill Group, which is assisting 13 funds. Park Hill Group is helping to obtain the largest amount of target capital, with the aggregate target of the 13 funds standing at over $28bn. This is followed by Credit Suisse Private Fund Group and MVision Private Equity Advisers, which is aiding funds that are hoping to raise just over $12bn.

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