Chart of the Week: Average size of private equity vehicles

 Consolidation of capital; average fund size increasing    

411 new 


Click here for a larger version 


Private Equity International's fundraising numbers reveal that average fund size has been increasing year on year since 2010, meaning that investors are committing more capital to fewer fund managers.

Between 2012 and 2013 there was a 27 percent increase in the average fund size. In 2013 the largest fund to close was Apollo Investment Fund VIII collecting $18.38 billion within just six months of its launch in June. Pension Danmark, Altamar Private Equity and Florida State Board of Administration (SBA) are some of the many LPs that have committed to the fund. The much awaited Hellman & Friedman Capital Partners VIII has currently raised $9.97 billion and if successfully closed by the end of the year, would be the largest fund to close in 2014.

The consolidation of capital comes as investors increasingly look to concentrate their commitments with their better performing managers, for the purpose of reducing fees and maximising portfolio returns. This is shown by a 65 percent increase in the capital raised from separate accounts between 2010 to Q3 2014.