Q3 2012 Private Equity Fundraising

by Louise Maddy

  • 22 Oct 2012
  • PE

As we can see in the Preqin Quarterly: Private Equity, Q3 2012, 126 private equity funds held final closes worldwide, raising an aggregate $68.5bn in capital commitments in Q3 2012. This represents a decrease in both the number of funds and the aggregate capital raised compared to Q2 2012, when 192 funds collected a total of $83.3bn in capital commitments. It should be noted, however, that the Q3 2012 fundraising figure is expected to rise as more information becomes available.

Despite challenging economic conditions, a number of the vehicles that held a final close in Q3 2012 raised significant amounts of capital, a positive sign for the private equity fundraising market, with 17 funds holding a final close on at least $1bn. Coller International Partners VI was the largest fund to close in Q3 2012; it raised $5.5bn in aggregate capital commitments from institutional investors.

At the start of Q4 2012, there were 1,918 funds in market collectively targeting $783bn.* At the start of Q3 2010 there were 1,522 funds on the road seeking an aggregate $560bn in capital commitments, with an average target size of $368mn. At the start of Q4 2012, these figures have increased by 26% for the number of funds in market and 40% with respect to aggregate target capital. Going into Q4 2012 the average target size is $408mn, an 11% increase compared to the start of Q3 2010.

Additional capital was raised in Q3 2012 by 139 funds in market that held interim closes. These funds raised $26bn in the quarter in capital towards their overall targets.

*Though it was on the road at the beginning of Q4 2012, Blackstone Real Estate Partners VII reached a $13.3bn final close on 10 October 2012 and was removed from the funds in market aggregate statistics.

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