2015 fundraising on track to beat 2014

PEI Research & Analytics reveals that private equity fundraising this year is likely to surpass total capital raised globally in 2014.

The total capital raised this year by private equity funds globally looks set exceed the amount of capital raised in 2014, according to data released by PEI’s Research & Analytics division.

So far this year, funds have raised a total of $289.6 billion, with $101.4 billion in Q1, $95.7 billion in Q2 and $92.4 billion Q3, compared to a total of $385.6 billion for the whole of last year.

Funds would have to raise a further $96 billion in Q4 to match the total for 2014, and a further $138.2 billion to match 2013’s fundraising total of $427.8 billion, according PEI Research data for Q3.

There are 182 funds currently in market targeting $1 billion or more looking to raise a combined $435.5 billion. These include a number of multi-billion dollar funds which have either already surpassed or are approaching their target, according to PEI Research.

Blackstone Capital Partners VII launched in 2014 targeting $16 million is still in market having raised $17.5 billion to date. TPG Partners VII, also launched in 2014, has raised $6.5 billion toward an $8 billion target, and another 2014 vehicle, KKR European Fund IV has raised $3.49 billion toward its $3.9 billion target, while Lindsay Goldberg IV has raised $3.3 billion toward its $4 billion target, PEI Research shows.

Fewer funds closed in the third quarter of this year compared to the same period a year before, although more funds were raised. In Q3 2015, 135 funds raised $92.4 billion compared to Q3 2014 when 165 funds closed raising $80.3 billion.

Funds focused specifically on Europe showed strong closes in the third quarter of this year, with 23 funds raising $30.2 billion of capital.

These included EQT VII that raised $7.6 billion, Carlyle Europe Partners IV that closed on $4.2 billion, and Montagu V that closed on $3.1 billion.

Large European funds still in market include Charterhouse Capital Partners X, which is targeting €3 billion and has reached its first close on €1.5 billion, as exclusively reported by Private Equity International.