Private Equity Funds in Market in January 2010

by Ben Formela Osborne

  • 11 Jan 2010
  • PE

At the beginning of 2010 there were 1,561 funds in the market targeting capital commitments of $698.5bn. This is a 21% drop of aggregate capital sought from the beginning of 2009, when there 63 more private equity funds on the road chasing capital.

In terms of regional focus, North America focused funds dominates with 738 private equity funds targeting investments in the region seeking aggregate capital commitments of $368.8bn. This is a sharp drop from the $460.5bn targeted by 763 North America focused funds in January 2009. The number of Europe focused funds in market has also decreased, from 407 in January 2009 to 386 currently. Total capital sought decreased 31% from $240.7bn in 2009 to $166.8bn in January 2010. As was the case in 2009, more Asia and Rest of World focused funds in market currently exist than Europe focused private equity funds. Nonetheless, Asia and Rest of World vehicles are targeting less capital than their Europe focused counterparts, with 437 Asia and Rest of World funds looking to attract $162.9bn in commitments. This is a 13% decline from the $187.3bn targeted in January 2009.

Real estate funds currently in the market are seeking the largest amount of capital of all fund types, with $173.6bn being targeted by 371 funds. Aggregate capital sought from real estate funds has decreased 24% from one year ago, when $227.8bn was being targeted by 381 vehicles. Having led the fundraising market in terms of aggregate capital sought in January 2009, buyout funds are the second largest fund type on the road in 2010, seeking $143.8bn from 222 vehicles. This is a 47% decrease in capital sought from the $271.5bn targeted by 268 buyout funds in January 2009. The venture capital fundraising market is the largest in terms of number of funds with 439 venture funds currently targeting $79.4bn in capital commitments. This is 44 fewer venture funds than at January 2009, and an 18% decrease in capital sought from the $97.4bn targeted one year previously.

Two fund types have witnessed an increase in aggregate capital sought compared with January 2009. Distressed private equity and mezzanine funds are currently targeting $55.7bn and $23.5bn in commitments, an increase in capital sought of 104% and 18%, respectively.

For more information on private equity fundraising, please see Preqin’s Funds in Market product.

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