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Private Equity Funds in Market Being Raised by First-Time Fund Managers - September 2012

by Bogusia Glowacz

  • 06 Sep 2012
  • PE

Preqin Investor Network currently tracks 1,254 private equity funds in market, including 348 funds managed by first-time managers. First-time funds are presently targeting an aggregate of $72bn which represents 14% of the total capital sought by all private equity funds (an equivalent of $510 bn). Almost 35% of private equity funds managed by first-time managers have held an interim close, whereas 42% of managers raising at least their second fund have reached an interim close.

In terms of geographic focus, Asia and Rest of World funds account for the largest proportion of private equity funds raised by first-time managers with 46%. North America-focused first-time funds represent 34% of the market and European vehicles make up a further 20%. In comparison, Asia and Rest of World is the second most preferred market for managers with experience raising funds, with 32% of these funds looking to invest in the region. North America is the most popular market for experienced managers, with 48% of funds raised by these firms targeting the region; a further 20% of funds raised by these managers are Europe-focused. This contrast highlights to investors that new managers are coming to market in the emerging economies of Asia, Latin America, and Africa as they look to take advantage of new opportunities, contacts and expertise within the regions.

One of the largest private equity vehicles being raised by a first-time manager is Guochuang Kaiyuan Fund of Funds. The fund is a part of a joint venture between China Development Bank (CDB) and Suzhou Ventures Group and is looking to raise CNY 10bn. The vehicle is expecting to hold a final close in December 2012. Another first-time private equity vehicle, AVG CIS Agricultural Opportunities Fund managed by AVG Capital Partners, is presently seeking $1.5bn. The fund is looking to deploy the capital across the food and agriculture industry sectors in Russia and has yet to hold its first close.

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