Research

2019 Natural Resources Fundraising Update

The number of natural resources funds closed fell for a third consecutive year in 2019. A total of 128 vehicles closed, down from a peak of 184 in 2017 and a sharp decline from 149 in 2018. However, aggregate capital raised surpassed $90bn for only the third year ever, reaching $109bn in 2019. This was driven by the closure of several mega funds, which will allocate a portion of their capital to energy investments, while the number of core natural resources funds closed continued to fall.

This sets up a challenging fundraising market in 2020. There are 318 vehicles seeking capital at the start of the year – more than two years’ supply at 2019 levels. The total is down from a year prior, suggesting that some fund managers are choosing to abandon their fundraising processes without reaching a final close, or that funds that do close are not being replaced by new vehicles coming to market.

“The fundraising market has fallen below replacement rate, as fund managers call off their fundraising or choose not to bring new funds to market. Without a seismic change in the commodities market, we can expect these conditions to persist in 2020.” – Patrick Adefuye, Head of Real Assets

Read our factsheet to view the top-level figures for 2019 fundraising and dry powder.

  • 09/01/2020
  • NR

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