Preqin Quarterly Update: Natural Resources, Q1 2016
Following a record year for natural resources fundraising in 2015 there has been a slower start to 2016: 12 funds closed in Q1 2016, raising $11.7bn. Investors appear concerned over the recent performance of the asset class, with returns falling short of expectations for many. As a result, investors appear to be taking a cautious approach towards the asset class. Sixty-three percent of investors that plan to commit to natural resources in the next 12 months will allocate less than $50mn. Furthermore, competition for limited investor capital is high: 251 funds are currently in market, targeting an aggregate $142.2bn.