After A Slow Third Quarter, What’s in Store for Private Equity Fundraising over The Long-Term?
9 November 2016
In the third quarter of 2016, 170 funds secured US$62bn in aggregate capital, making it the lowest amount of capital raised since Q3 2013, according to Preqin’s latest report. Will private equity (PE) fundraising activity pick up, and what’s in store over the long term?
Preqin’s Investor Outlook report suggests a possible rebound. According to the report, over half (56%) of institutional investors plan to increase their allocations to PE over the next 12 months; of those planning to commit further capital, 59% are expected to make their next commitment in the H2 2016. Here is a quick snapshot of Preqin’s institutional investor data compared to 2015 data:
- Region. Europe has overtaken North America as the most attractive sector for investment
- Strategies. Buyout remains the most sought-after fund type, while appetite for Venture Capital and Growth has increased
- How big are the expected capital commitments? 44% of investors plan to commit less than US$50mn, while 26% plan to commit between US$100-$299mn
- Factors considered in fund manager evaluations. “Past performance” and “length of track record” are seen as the most important factors when looking for a fund manager
With such a large proportion of investors expecting to commit further capital, we are pleased to report that Intralinks continues to play a significant role in helping GPs meet their fundraising targets. To learn more, see below for a breakdown of Intralinks fundraising data across funds.