The number of private equity commitments made by funds of funds in recent years.

by Joe Childs

  • 03 Feb 2011
  • PE

Preqin’s Investor Intelligence database features more than 9,000 named private equity fund commitments that have been made by the managers of funds of funds. This includes over 2,200 investments in private equity funds that have commenced investing in the last four years. Based on the commitments that fund of funds managers are known to have made, the data suggests that these firms have been less active in recent years than in the past.

Around 200 investments in vintage-2010 funds are currently known to have been made by fund of funds firms, with 48% of these coming from managers based in North America, 43% from European firms and 9% from managers based in other regions. More than 260 commitments to private equity funds with a 2009 vintage have been recorded, while just over 700 investments in vehicles with a vintage of 2008 are known to have been made by funds of funds managers. More than half of the registered commitments to 2008 and 2009 vintage funds were made by European fund of funds managers. North American firms account for 44% of the fund of funds commitments known to have been made to vintage-2009 funds and 42% of investments in vintage-2008 vehicles. Significantly more commitments – over 1,000 – to private equity funds commencing their investment period in 2007 have been logged for fund of funds managers.

These figures are based on the commitments that fund of funds managers are known to have made, so they are not comprehensive and are likely to increase over time. However, the decline in the number of known investments in funds with post-2007 vintages is reflective of the decline in the private equity fundraising market since the financial crisis.

Preqin’s Investor Intelligence database provides extensive information on the investment plans and previous activity of fund of funds managers and all other institutional private equity investors participating in the asset class. Users are able to utilize a range of tools, including advanced searches of LPs by the funds and firms they have invested with, by the nature of past commitments, by individual geographic, strategy and industry preferences, and by various other criteria.

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