Last month, Quadrant Private Equity No.4 held a final close at $759 million just one month after launch. Quadrant’s total exceeded the amount raised by all Australian GPs in the whole of 2013. More information on this fund can be found here. Furthermore, 22 Australian funds are currently on the road with a combined target of $7.38 billion. With almost a quarter of these LPs having already held first closes totalling $574 million, Australian fundraising looks to be in good health in 2014.
By contrast, in 2013, Australian headquartered GPs raised just $0.71 billion from five funds that held a final close – a 78 percent fall from 2012’s total. Anchorage Capital Partners II was the largest fund to close in the year, reaching its target of $234.78 million. Macquarie Group and HarbourVest Partners were among the LPs to commit to the distressed fund.
LPs consistently cite the past experience of a GP as the most important factor for them when making an investment. So it was surprising to see experienced managers based in Australia having difficulty securing commitments from LPs last year. Regulation drove some domestic LPs away the asset class which was perhaps a cause of the slow fundraising market. However, Quadrant’s success means the Australian picture looks more optimistic in 2014.