Private Equity Funds in Market Being Raised by Western Europe-Based Fund Managers - November 2012

by Laura Duce

  • 26 Nov 2012
  • PE

Preqin's Funds in Market Product shows that there are currently 429 private equity funds being raised by Western Europe-based fund managers. Collectively, these funds are targeting approximately €137.9bn in aggregate capital commitments. Seventy-nine percent of these funds are predominately focused on European investments and the majority of these fund managers are based in the UK; UK fund managers are raising 40% of these 429 funds in market. This is followed by 71 fund managers located in France, 52 based in Switzerland, and 45 fund managers located in Germany.

Of these 429 funds currently raising, 206 have already held at least one interim close, with aggregate capital commitments currently standing at €33bn. Buyout funds are targeting the largest amount of investor capital, with an aggregate target of €40.6bn. Infrastructure funds, including infrastructure funds of funds and secondaries, are targeting the second largest amount, with an aggregate capital target of €33.0bn.

The average target size of these funds in market being raised by Western European fund managers is €321.5mn, and the largest of these funds currently in market is targeting €9bn. Of these 429 funds, the four largest funds are Apax VIII, Permira V, Cinven V and Actis 4, targeting €9bn, €6.5bn, €5bn and $3.5bn respectively. All four of these funds are being raised by London, UK-based fund managers, and all have a diversified industry focus. The Apax VIII and Permira V funds make investments globally, Cinven V targets European investments, and Actis 4 is primarily focused on investments in emerging markets including Africa, Latin America and India.

So far this year, 104 funds have been raised by Western Europe-based fund managers, collecting aggregate commitments of €36.0bn. These 104 funds had an average final close size of €346.6mn. The largest fund to close in 2012 so far is the BC European Cap IX fund, €500mn above target on €6.5bn. The buyout vehicle focuses on European investments in a broad range of industries.

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