NEW YORK, July 8: Private equity fund-raising picked up momentum in the April-June quarter despite difficult economic environment globally with USD 48.5 billion raised, up 43 per cent from the previous quarter.
Research firm Preqin said 145 private equity funds were raised aggregating USD 48.5 billion, up from the USD 33.7 billion from January-March this year.
It also said that the average time taken for a private equity fund to close declined from 18.5 months in 2011 to 16.7 in 2012, year-to-date, suggesting that some fund managers are finding success in attracting institutional capital.
“Private equity fund-raising conditions remain extremely challenging for fund managers; however, the number and value of interim closes completed in Q2 2012, and the fact that funds are closing quicker on average than last year, shows that investors are still committing capital to funds,” Preqin Manager – Fundraising Data – Richard Stus said.
Moreover, a Preqin survey said 90 per cent of investor respondents plan to increase or maintain their allocations to private equity over the next 12 months.
The difficulty facing managers coming to market remains ‘standing-out’ from the record number of funds on the road.
“With the market so crowded, fund managers will have to work hard to ensure that they position their vehicles correctly and do their homework in targeting the right investors for their offering,” Stus said.
As many as 1,872 private equity funds are currently in the market, targeting a collective USD 801 billion, up from the 1,846 funds hoping to attract USD 758 billion that were in market in January 2012, the report said. (PTI)
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