Private Equity Fundraising Outlook for 2014 – February 2014

by Kamarl Simpson

  • 03 Feb 2014
  • PE

There are currently 2,118 private equity funds in market aiming to raise an aggregate $750bn. Data based on which fund managers have announced plans to launch a new vehicle and which managers are calculated to be likely to do so in the near future reveals a further 363 funds have been announced or are expected to enter the fundraising arena in 2014. As a result, the market looks set to remain competitive, taking into consideration the significant stream of new opportunities likely to be launching for LPs over the course of 2014.

Of the funds announced or expected to begin fundraising within the year, buyout funds are the most abundant with 75 vehicles, of which 49% plan to enter the fundraising market within the first half of 2014. Buyout vehicles are closely followed by 74 venture capital funds which are likely to start fundraising in 2014. Infrastructure funds are the third most common with 57 announced vehicles, 58% of which are expected to launch before the start of Q3 2014.

Funds that intend to have their main geographic investment focus in Asia account for the largest proportion (31%) of the funds announced or expected to launch in the next 12 months. This is followed by primarily North America-focused funds, with 29% of announced funds targeting the region, and then by Europe-focused vehicles, which comprise 26%.

Experienced fund managers that have previously raised three or more funds represent 37% of the announced or expected private equity vehicles likely to come to market in the year. TPG is an example of such a manager; the buyout shop closed its most recent fund in the series, TPG Partners VI, having raised just under $18.9bn in 2008. The firm is in the process of raising a fund to serve as a precursor to the launch of its next global buyout vehicle which is expected towards the end of 2014.

First-time fund managers account for 18% of the announced or expected private equity funds to launch in 2014. Amulet Capital Partners is an example of a first-time manager planning to launch a fund in 2014, and is likely to focus on buyout and growth investments across a diverse range of sub-sectors within the healthcare industry.

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