Preqin’s latest edition of Private Equity Spotlight examines how many funds are likely to begin fundraising in the next 12 months from September 2013. The data presented is 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.
There are currently 2,001 private equity funds in market aiming to raise an aggregate $728bn and a further 384 funds announced or expected to enter the fundraising arena in the next 12 months. As a result, the market looks set to remain competitive, taking into consideration the significant stream of new opportunities launching for LPs in the next 12 months.
Of the funds announced or expected to begin fundraising within the next 12 months, buyout funds are the most abundant with 81 vehicles likely to pursue a buyout investment strategy, of which 73% are expected to launch by the end of 2013. Private equity real estate funds are the second most numerous with 76 announced vehicles, 83% of which are expected to launch by year end.
Funds that intend to have their main geographic investment focus in Asia, account for the largest proportion (34%) of the funds announced or expected to launch in the next 12 months. This is followed by primarily North America-focused funds, with 28% of announced funds targeting the region, closely followed by Europe-focused vehicles, which comprise 27%.
Experienced fund managers that have previously raised three or more funds represent 36% of the announced or expected private equity vehicles likely to come to market in the next 12 months. Thomas H Lee Partners is an example of such a manager; the buyout shop closed its most recent fund in the series, Thomas H Lee VI, having raised $8.1bn in 2007.
First-time fund managers account for 26% of the announced or expected private equity funds to launch in the next year. Amulet Capital Partners is an example of a first time manager planning to launch a buyout fund in the next 12 months, and is likely to focus on buyout and growth investments across a diverse range of sub-sectors within the healthcare industry.