Private Equity Fundraising Improves in the Second Quarter

An early look at private equity fundraising in the second quarter suggests an improving market for raising new money, including an apparent uptick in prospects for new venture capital funds.

The data from Preqin shows money raised globally by all types of private equity funds rose from the same quarter a year ago and from the depressed levels of the first quarter. However, industry consolidation continues with the number of funds holding a final close falling both from the second quarter of last year and sequentially.

According to Preqin, new funds with a final close during the second quarter raised $122 billion globally. That figure could rise 10% to 20% as additional data becomes available, Preqin said.

However, only 154 funds received commitments, the fewest in a quarter in 10 years. Another 155 funds had an interim close during the second quarter, securing an additional $24 billion.

The top 10 largest funds, including ones from Warburg Pincus and Silver Lake Capital, raised 55% of the total, again showing the concentration of capital.

Buyout funds raised $49 billion, more than double the $23 billion of the first quarter. Twenty-nine venture funds in the United States raised $6 billion, Preqin found.

According to an April report from the National Venture Capital Association and Thomson Reuters, publisher of this blog, 35 venture funds raised $4.1 billion in the first quarter. Venture firms raised $6.3 billion in the year-ago second quarter, the April survey found.

Fundraising activity across the private equity industry remains high. As many as 1,958 funds are on the road seeking $770 billion, Preqin says.

Photo courtesy of Shutterstock.

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2 Comments

  • Preqin says nearly two thousand private equity firms are on the road seeking money. Does anyone have a sense doors are easier to open?

  • Many funds in the market, but LPs are cautious about pulling the trigger. Could be encouraging for emerging managers, as early funds in a series often outperform followups,

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