Chart of the Week: 2014 private equity fundraising

Private equity fundraising momentum cools after bumper 2013 

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$375.3 billion was raised from institutional investors for private equity investments in 2014, which represents a slowing of the post-crisis fundraising momentum that saw over $430 billion raised in 2013. However, 2014’s figure is comfortably higher than in any post-crisis year other than the last and, with around 15 percent of closed funds still to be revealed, last year’s result may well be rivalled.

 

Fundraising for pan-European investments displayed the largest drop against 2013. Aggregate capital raised decreased from $68.3 billion last year to $18.5 billion in 2014. North American buyout focused funds have seen the largest increase in capital raised; $57.8 billion was raised in 2013 which increased to $80.6 billion in 2014. The largest fund to close in 2014 was Hellman & Friedman Capital Partners VIII which raised $10.9 billion, surpassing its $8.9 billion target.  

 

Dan Gunner, Director of Research & Analytics at PEI, said “while 2013’s heights may not have been repeated, it’s been another good year for private equity fundraising. However the larger fund managers continue to dominate and capital is increasingly concentrated among a few leading names. As out latest survey made clear, investors continue to find private equity attractive: almost half of those we spoke to planned to increase allocations with only a handful looking to pull back. So, we expect to see another strong year in 2015 and, with over 2,200 funds currently seeking investor attention, it is as competitive as ever.”

 

For more information, please contact Dan Gunner.