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UK-Focused Funds in Market – February 2013

by Lisa Gan

  • 25 Feb 2013
  • PE

There are currently 102 private equity funds in market seeking capital commitments with a geographic focus that includes the UK. According to Preqin’s Funds in Market database, these funds are collectively seeking €42bn in capital commitments. Forty-two of these vehicles focus exclusively on the UK, 34 of which are managed by firms based in the country. These 42 funds are targeting an aggregate €9.3bn in investor capital, and 19 vehicles have already held at least one interim close, raising a total €2.2bn in capital commitments.

The average target size of funds in market focused exclusively on the UK is €237mn, and the largest fund target size is €1bn. As of February 2013, the three largest UK-focused funds in market are Allianz Infrastructure Debt Fund, ICG Longbow UK Real Estate Debt Investments III, AgFe Senior Debt Fund, which are targeting €1bn, £500mn, and £500mn respectively. Allianz Infrastructure Debt Fund provides senior debt for projects in the UK, and invests in greenfield sites to develop hospitals, schools and roads, and may invest in offshore electricity transmission infrastructure.

Of all funds currently in market with a geographic focus that includes the UK, real estate funds are the most numerous and are seeking the largest amount of capital commitments compared to other fund types. There are 42 real estate funds in market aiming to raise an aggregate €17bn. Buyout and infrastructure funds are the second most numerous fund type, both with 15 funds on the road aiming to raise €13.1bn and €5.9bn respectively. Of all funds in market that include the UK in their geographic focus, 49 have held at least one interim close, garnering aggregate commitments of just over €10bn.

Over the past 12 months, 34 funds that include the UK in their geographic focus have held a final close, raising an aggregate €7.7bn. The largest fund to close in the last 12 months with a geographical focus that includes the UK is Avenue Europe Special Situations Fund II. The fund reached a final close having raised €2.28bn for investments in debt, select equity securities and other obligations of European companies in financial distress. The fund invests primarily in Northern Europe, including the UK, Germany, Benelux countries and the Nordic region.

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