Private Equity Buyout Funds in Market – June 2013

by Luke Goldsmith

  • 24 Jun 2013
  • PE

According to Preqin's Funds in Market service there are 276 private equity buyout funds currently raising capital. These funds are collectively targeting $226bn in capital commitments. There are nine funds targeting $5bn or above, representing 32% of all the capital being targeted by buyout funds. One hundred and twenty buyout funds in market have so far reached an interim close, raising an aggregate $49bn in capital commitments. The average target size for buyout funds in market is currently $886mn.

Of all the funds currently in market, 139 primarily focus on North America, collectively targeting $120bn and representing 53% of the total capital targeted. Seventy-four buyout funds are targeting European investments with a collective target of $63bn which accounts for 28% of the target capital.
The largest buyout fund currently in market is the Apollo Investment Fund VIII. The fund is targeting $12bn which is 5% of all the capital being targeted by buyout funds. It is the eighth in the buyout series of funds raised by Apollo Global Management and focuses on all industry sectors in North America. The fund is expected to hold an interim close of $5bn at the end of the month.

The second largest fund is similar in size; CVC European Equity Partners VI is the largest Europe-focused buyout fund and is targeting just short of $12bn, with a €9bn target. The fund invests in mid-market companies based in Western Europe in the beverages, chemicals, consumer services, distribution, IT, manufacturing, media and retail industries.

The largest fund in market with an Asia focus is KKR Asia Fund II. The fund follows a similar strategy to its predecessor fund and focuses on management buyouts and growth equity investments across Asia, mostly concentrating on Japan, China and Australia. The fund is expecting to hold a final close at the turn of the month.

Over the past 12 months, 131 buyout funds have held a final close. These funds raised $199bn in total capital commitments, with the average amount of capital raised by each fund at $969mn.

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