Chart of the week: Drop-off in private closed-ended buyout fundraising

 Aggregate buyout fundraising in H1 2015 points to a continued pattern of decreasing value year on year


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Fundraising for closed-ended buyout vehicles in the first half of 2015 has collected just $61 billion from the close of 58 funds. In comparison to H1 2014, there is a 39 percent decrease in aggregate capital raised and a 38 percent drop compared with H2 2014. Between 2010 and H1 2015, the most successful fundraising year in terms of total value of capital gathered was 2013. In this year $218.35 billion was raised overall from the close of 160 funds. This aggregate figure then decreased in 2014 to $199.25 billion, and looks set to fall even lower at 2015 year end.

So far in 2015 the largest buyout vehicle to hold a final close is American Securities’ North America-focused fund, American Securities Partners VII, which collected $5 billion from investors. Of the 58 funds closed in H1 2015, 22 raised over $1 billion each. In the first half of the previous year 27 vehicles each gathered over $1 billon, the largest of which was the $7.3 billion Bain Capital Fund XI – Bain Capital’s Globally-focused vehicle.

Although buyout fundraising has been decreasing from half year to half year since H2 2013 there are a number of large buyout vehicles on the road, revealing the potential for a renewal of interest in the strategy going forward. The largest buyout fund currently in market is Blackstone Capital Partners VII. With a target size of $16 billion, the vehicle has already collected $17.5 billion from investors and will be one of the largest funds raised by Blackstone since the firm’s inception.