Money raised outside of traditional private equity funds for co-investments, separate accounts and direct investments continues to pile up under a newer fundraising data point often described as shadow capital.
It’s been widely seen as a trend among LPs, but there’s not a lot of hard data available about it, until now. And it really adds up.
Global placement agent Triago estimated a whopping $113 billion in shadow capital committed in 2014, a big addition to the post-crisis record of $438 billion raised by private equity funds last year. Shadow capital makes up about 26 percent of yearly fundraising nowadays, up from 13 percent during the 2007 and 2008 high water mark in fundraising, according to the Triago Quarterly.
The first quarter of 2015 kept up a strong pace, with $110 billion raised, the best first quarter in seven years and 11.4 percent above the year-ago period.
Here are some other interesting items from the Triago Quarterly:
- Private equity commitments and investment may amount to about $4 trillion in 2015, an all-time high. Twenty-three years ago when Triago launched, the industry counted less than $50 billion under management and activity was limited mostly to the U.S.
- Large European buyout fund prices in the secondary market rose to 100 percent of net asset value in the first quarter, up from 98 percent in the year-ago period. The higher price may reflect growing interest in European funds as a way for U.S. LPs to take advantage of a stronger dollar.
- Adams Street’s Arnaud de Cremiers, Carlyle Group’s Marlon Chigwende and Helios executive Alykhan Nathoo took part in a Triago roundtable to talk about the risks and opportunities in Sub-Saharan Africa.
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