Chart of the week: Debut fundraising gains ground

First-time private equity funds have performed strongly in the first half of 2016.


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1315 Capital has closed its debut fund on $200 million. The firm, founded in 2014 by Apax veteran Adele Oliva and healthcare investor Michael Koby, targets the smaller side of healthcare growth equity.

With many new firms entering private equity, PEI’s Research & Analytics team have analysed how this is reflected in fundraising.

The peak year for debut fundraising between 2010 and 2016 to date was 2011, when $33.4 billion was raised from 140 vehicles.

Firms starting out in the industry tend to target smaller amounts of capital compared with established managers, as they work to build a strong reputation in the field.

However, eight vehicles which closed in 2011 gathered $1 billion or more. The largest was Taoshi Energy Equity Investment Fund I, which garnered $3.1 billion to invest into the energy sector.

Debut fundraising has declined year-on-year since 2013, but this year has already reached 82 percent of 2015’s total, with $10.2 billion gathered for first-time vehicles. The largest, Altas Partners I, had raised $1 billion by April, making it the largest inaugural fund to close so far in 2016.