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Private Equity Fund of Funds Fundraising – H1 2012

by Patrick Adefuye

  • 19 Jul 2012
  • PE

In total, 39 private equity fund of funds vehicles held a final close in the first half of 2012. In aggregate, these vehicles raised a total of $6.2bn, with the average vehicle raising around $193mn. In comparison, 43 private equity fund of funds vehicles held a final close in the first half of 2011, raising an aggregate of $9.0bn, with an average amount of $236mn raised per fund. Fundraising for private equity fund of funds vehicles has picked up slightly in this quarter; in Q2 2012 24 private equity fund of funds raised $3.5bn compared to the 15 funds which raised $2.6bn in Q1 2012. Of the private equity fund of funds to close in H1 2012, 23 predominantly focus on the US, eight on Europe, and a further eight on Rest of World.

Axiom Asia III held a final close in March 2012 on $1.2bn and is the largest fund of funds vehicle to close in H1 2012. It invests in a variety of Asia-focused buyout and venture funds focusing particularly on Greater China, India, Japan, Southeast Asia, and Australia. The next largest private equity fund of funds to close in H1 2012 is Morgan Stanley Private Markets Fund V, which held a final close on $720mn. Managed by Morgan Stanley Alternative Investment Partners, the vehicle primarily focuses on Europe and North America and targets opportunities in various fund strategies. The third largest final close held in the first half of the year was by Pantheon Asia Fund VI, which closed on $647mn. Geographically, the vehicle will target funds focused on Australia, China, India, Japan, and South Korea.

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